London, UK – August 9, 2025
— A new report from CJ Global reveals that healthcare infrastructure worldwide is buckling under a mounting financial strain, with devastating consequences for families and national economies. The study, which synthesizes data from the World Health Organization (WHO) and the World Bank, highlights that a staggering number of people are being pushed to the brink of financial ruin by out-of-pocket medical expenses. The findings show that over 930 million people, approximately 12% of the global population, are now forced to allocate at least a tenth of their household income to healthcare. This unprecedented burden is a powerful indicator of a global system in crisis, fueling a renewed and urgent debate on the necessity of universal healthcare as a fundamental human right and a solution for economic stability.
The data reveals that for many, particularly in low- and middle-income countries, the cost of an illness is not just a health crisis but a financial one. While the official number of people pushed into extreme poverty by healthcare costs has been estimated at nearly 100 million, the broader measure of catastrophic spending — defined as spending 10% or more of a household’s income on health — reveals a much larger and more insidious problem. This level of spending often forces families to choose between medical care and other basic needs, such as food, housing, or education, creating a vicious cycle of poverty and poor health. The report emphasizes that this financial strain is not limited to the poorest nations; even in many high-income countries, a significant portion of the population struggles with high deductibles, co-pays, and the costs of medications, which continue to outpace wage growth.
One of the key drivers of this crisis is the sustained underinvestment in public healthcare systems. The report indicates that while some countries saw a surge in government health spending during the initial years of the COVID-19 pandemic, this trend has since reversed. Many governments, facing mounting debt and competing priorities, have begun to deprioritize health spending. This has a direct and immediate impact, as it means less funding for essential services, staff, and infrastructure, ultimately shifting a greater burden of cost onto individual citizens. A recent WHO report for 2024 showed that average per capita government spending on health fell in 2022 from 2021 across all country income groups, a trend that is a major threat to achieving universal health coverage (UHC).
The analysis also points to the direct link between a country’s healthcare financing model and the financial well-being of its citizens. In systems heavily reliant on out-of-pocket payments, the risk of financial hardship is dramatically higher. The report contrasts this with countries that have successfully implemented universal healthcare, where all citizens have access to a full range of essential health services without facing financial hardship. By pooling resources through public financing, these systems protect individuals and families from catastrophic medical bills, ensuring that health is treated as a social good rather than a commodity. The report cites examples from several nations where UHC has been shown to not only improve health outcomes and reduce inequalities but also to generate positive economic benefits by increasing workforce productivity and reducing poverty.
The call for universal healthcare is now louder than ever, with policymakers and public health advocates arguing that it is the only viable long-term solution to the current crisis. Proponents of UHC argue that it is a strategic investment in human capital and a necessary foundation for building resilient, prosperous societies. The report outlines a number of key actions required to move towards UHC, including a radical reorientation of health systems towards primary care, advancing equity in healthcare access, and investing in robust health information systems. It also stresses the need for more progressive financing models, where countries can increase their health spending by reforming tax systems and cracking down on corporate tax avoidance, which currently robs developing nations of billions of dollars in potential revenue.
In conclusion, the report makes it clear that the current global healthcare system is unsustainable. The fact that nearly a billion people are sacrificing a significant portion of their income for healthcare is not just a statistic but a humanitarian and economic emergency. The rising costs and systemic inadequacies are a warning sign that the world must move beyond a patchwork of fragmented systems and embrace the transformative potential of universal healthcare. The goal of ensuring that everyone receives the health services they need, when and where they need them, without financial hardship, is not merely an aspirational ideal; it is an urgent necessity for the future well-being of every society.
