US President Donald Trump has blamed countries like Australia for high medicine costs, calling them “freeloaders.” However, data suggests the real issues lie within the US system itself. In 2022, the US spent $12,555 per person on healthcare—almost double that of other wealthy nations, including Australia. This gap cancels out about half the income difference between the US and Australia, according to the World Bank.
Higher spending has not translated into better health. The US has one of the lowest life expectancies among rich countries, and Americans suffer from chronic diseases like diabetes and asthma at roughly twice the rate of peers. These disparities persist across all income levels, ruling out simple explanations like gun violence or inequality. Life expectancy has been declining since 2014, with a weak recovery from the pandemic.
Trump’s focus on drug pricing is understandable, but his claim that other countries free-ride on US research is outdated. US medical research funding peaked in 2004, and its share of new drugs has fallen. For instance, semaglutide (Ozempic) was developed by Danish firm Novo Nordisk. The US could adopt its own version of Australia’s Pharmaceutical Benefits Scheme (PBS) to lower prices, but political obstacles remain.
Australia’s Medicare system—a mix of universal coverage and private insurance—offers a model for reform. Yet the Trump administration appears unable to implement systematic change, instead resorting to blaming others. The real challenge lies in addressing US healthcare’s structural inefficiencies, not pointing fingers abroad.
