It’s widely recognized that the US citizens have the highest healthcare costs in the world. Have you ever wondered why Americans spend so much more? The majority cost revolves around inpatient and outpatient care sectors but can you guess what takes up the next largest sector? Hint? It’s the prescription drugs.

McKinsey & Company recently wrote about this issue. They are a leading management consulting firm that advises governments and private businesses from all over the world. The article explains that America spends $2.1 trillion on healthcare every year and it breaks down the healthcare costs into categories. Out of this $2.1 trillion, roughly $650 billion is spent above the expected predictions.

Out of this $650 billion over spending, $98 billion was overspent on medications. That’s a vast amount of above expected pending on drugs!