What really matters to most Americans in regard to health care costs is how much they have to spend out of their financial resources, whether in premium sharing or cost-sharing at the time of service. And the prospect of paying significant cost-sharing is what causes financial anxiety for most people. Research in Health Affairs examines trends in cost sharing between 2007 and 2010, using a combination of MEPS survey data and other information sources. (HA Article) In 2010, out-of-pocket spending was $306.2 billion or almost 12% of all health expenditures. Consistent with an overall slowdown in health spending growth, from 2007 to 2010 out-of-pocket costs grew 1.4% on average per year, down from 5.3% average annual increases from 2004 to 2007. Among subgroups, however, the only one that experienced an increase were those persons with private health insurance. The uninsured saw a significant decline in their out-of-pocket spending (which by definition is most of their health care costs), as did Medicare and Medicaid recipients. In 2010, those with employment-sponsored insurance accounted for 43% of all out-of-pocket expenses and saw growth of 4.1% in those expenses, although from 2007 to 2010 the average annual increase was 2.4%. We know from other sources that out-of-pocket spending for this group has continued to rise since 2010, particularly as high-deductible plans spread. Although Medicare beneficiaries represent only 15.6% of the population, they incur 40% of out-of-pocket spending, although their per beneficiary spending has been flat the last few years. Finally, the Medicaid population, which is much larger than the Medicare one, has relatively low out-of-pocket spending and also has seen no increase in those costs.
✅ Subscribe via Email
About this Blog
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].
Healthy Skeptic Podcast
Research
MedPAC 2019 Report to Congress
June 18, 2019
Headlines
Tags
Access
ACO
Care Management
Chronic Disease
Comparative Effectiveness
Consumer Directed Health
Consumers
Devices
Disease Management
Drugs
EHRs
Elder Care
End-of-Life Care
FDA
Financings
Genomics
Government
Health Care Costs
Health Care Quality
Health Care Reform
Health Insurance
Health Insurance Exchange
HIT
HomeCare
Hospital
Hospital Readmissions
Legislation
M&A
Malpractice
Meaningful Use
Medicaid
Medical Care
Medicare
Medicare Advantage
Mobile
Pay For Performance
Pharmaceutical
Physicians
Providers
Regulation
Repealing Reform
Telehealth
Telemedicine
Wellness and Prevention
Workplace
Related Posts
Commentary
April 19, 2024
Another Body Blow to Gender Dis-Affirmation
A review from Britain reveals the complete lack of any scientific evidence to support the…
Commentary
April 18, 2024
Progress Against Cancer
The US has made particularly good progress in treating cancer and limiting mortality, but much…
Commentary
April 17, 2024
I Am Done With Coronamonomania, Part 4, Vax Safety Edition
A somewhat lengthy examination of recent studies related mostly to vax safety, the results of…