Toshiko Kaneda, PhD Population Reference Bureau (PRB) James Kirby, PhD Agency for Healthcare Research and Quality (AHRQ)

Similar documents
Out-of-Pocket Spending Among Rural Medicare Beneficiaries

Table 1 Annual Median Income of Households by Age, Selected Years 1995 to Median Income in 2008 Dollars 1

THE WIDENING HEALTH CARE GAP BETWEEN HIGH- AND LOW-WAGE WORKERS. Sherry Glied and Bisundev Mahato Columbia University. May 2008

One of the nation s greatest public policy challenges is addressing health

Health Insurance Coverage in 2013: Gains in Public Coverage Continue to Offset Loss of Private Insurance

Dual-eligible beneficiaries S E C T I O N

Medicaid: A Lower-Cost Approach to Serving a High-Cost Population

ASSESSING THE RESULTS

Estimates of Medical Expenditures from the Medical Expenditure Panel Survey: Gains in Precision from Combining Consecutive Years of Data

Aging Seminar Series:

Aging in America: Income and Assets of People on Medicare

Vermont Health Care Cost and Utilization Report

Health Reform Monitoring Survey -- Texas

Small Area Health Insurance Estimates from the Census Bureau: 2008 and 2009

Profile of Ohio s Medicaid-Enrolled Adults and Those who are Potentially Eligible

WHO ARE THE UNINSURED IN RHODE ISLAND?

Although several factors determine whether and how women use health

THE COMMONWEALTH FUND SURVEY OF HEALTH CARE IN NEW YORK CITY

Minnesota Health Care Spending Trends,

New York City Has a Higher Percentage of Uninsured than Does New York State or the Nation

Chapter 4 Medicaid Clients

ISSUE BRIEF. poverty threshold ($18,769) and deep poverty if their income falls below 50 percent of the poverty threshold ($9,385).

Savings Medicare Beneficiaries Need for Health Expenses: Some Couples Could Need as Much as $370,000, Up from $350,000 in 2016

Redistribution under OASDI: How Much and to Whom?

People living with chronic conditions are particularly vulnerable

Kansas City Regional Health Assessment

Nest Egg for Retirement? The Realities of Asset Holdings for Older Adults

Income and Poverty Among Older Americans in 2008

STATISTICAL BRIEF #172

Written Statement for the. Subcommittee on Long-Term Growth and Debt Reduction. Senate Committee on Finance

Effects of Poststratification and Raking Adjustments on Precision of MEPS Estimates Sadeq R. Chowdhury

Household Healthcare Spending in 2014

Proportion of income 1 Hispanics may be of any race.

Rural Policy Brief Volume 10, Number 7 (PB ) November 2005 RUPRI Center for Rural Health Policy Analysis

Fact Sheet. Health Insurance Coverage in Minnesota, 2001 vs February Changes in Health Insurance Coverage and Uninsurance

Sources of Income for Older Persons, 2006

Dignity for All: Ensuring Economic Security as America Ages. A Senior Poverty Forum

Insurance, Access, and Quality of Care Among Hispanic Populations Chartpack

Household Expenditures on Outpatient Care, Inpatient Care, and Prescription Medication: Trends by Income Quintile

Fact Sheet March, 2012

Widening socioeconomic differences in mortality and the progressivity of public pensions and other programs

CHAPTER 6 CONCLUSIONS AND IMPLICATIONS

An Analysis of Rhode Island s Uninsured

UNDERSTANDING THE HEALTHCARE COST CONUNDRUM

Health Care: Obama Officials Look Back at the ACA and the Path Forward

Strategies for Assessing Health Plan Performance on Chronic Diseases: Selecting Performance Indicators and Applying Health-Based Risk Adjustment

Table 1. Underinsured Indicators Among Adults Ages Insured All Year, 2003, 2005, 2010, 2012, 2014, 2016

September 2013

The Financial Burden of Medical Spending Among the Non-Elderly, 2010

Differences in Health Care Spending of Children and Adults

Health Insurance Coverage in the District of Columbia

U.S. Senate Special Committee on Aging Income Security and the Elderly: Securing Gains Made in the War on Poverty

WATER SCIENCE AND TECHNOLOGY BOARD

EXAMINATION OF MOVEMENTS IN AND OUT OF EMPLOYER-SPONSORED INSURANCE. NIHCM Foundation in collaboration with Pennsylvania State University

National Health Expenditure Projections

Racial and Ethnic Disparities in Access to and Utilization of Care among Insured Adults

Supplementary Appendix

Massachusetts Household Survey on Health Insurance Status, 2007

Comparing Estimates of Family Income in the Panel Study of Income Dynamics and the March Current Population Survey,

Issue Brief. Findings from the Commonwealth Fund Survey of Older Adults

2000s, a trend. rates and with. workforce participation as. followed. 2015, 50 th

Marital Disruption and the Risk of Loosing Health Insurance Coverage. Extended Abstract. James B. Kirby. Agency for Healthcare Research and Quality

Health Status, Health Insurance, and Health Services Utilization: 2001

The Economic Downturn and Changes in Health Insurance Coverage, John Holahan & Arunabh Ghosh The Urban Institute September 2004

Out-of-Pocket Health Spending by Medicare Beneficiaries Age 65 and Older: 1997 Projections

Distribution of Family Wealth,

Savings Medicare Beneficiaries Need for Health Expenses: Some Couples Could Need as Much as $400,000, Up From $370,000 in 2017

HEALTH COVERAGE AMONG YEAR-OLDS in 2003

Results from the 2009 Virgin Islands Health Insurance Survey

The Impact of the Recession on Employment-Based Health Coverage

Medicaid Insurance and Redistribution in Old Age

The Center for Hospital Finance and Management

Health Insurance Coverage: Early Release of Estimates From the National Health Interview Survey, 2010

Health Insurance Coverage: Early Release of Estimates From the National Health Interview Survey, 2009

Fact Sheet. Health Insurance Coverage in Minnesota, Early Results from the 2009 Minnesota Health Access Survey. February, 2010

THE FINANCIAL SITUATIONS OF OLDER ADULTS

SOURCES OF INCOME FOR OLDER PERSONS IN 2003

Figure 1. Differences in Out-of-Pocket Expenses for Poor Beneficiaries in the House and Senate Low-Income Subsidy Programs $1,200 $150

The Affordable Care Act: Seven Years Later

medicaid a n d t h e Aging Out of Medicaid: What Is the Risk of Becoming Uninsured?

More than 1.3 million new cancer cases are expected in 2003,

CRS Report for Congress Received through the CRS Web

SECTION 6. Health Care Spending

The Health of Jefferson County: 2010 Demographic Update

Uninsured Americans with Chronic Health Conditions:

Minority Workers Remain Confident About Retirement, Despite Lagging Preparations and False Expectations

Arkansas Experience with Health Savings Accounts in a Medicaid Expansion Population

Fast Facts & Figures About Social Security, 2005

Modifying Medicare s Benefit Design:

Health Insurance Coverage among Puerto Ricans in the U.S.,

Health Insurance Coverage in Oklahoma: 2008

The Gender Earnings Gap: Evidence from the UK

Partnership at Age 50

Medicaid Benefits for Children and Adults: Issues Raised by the National Governors Association s Preliminary Recommendations

The 2008 Statistics on Income, Poverty, and Health Insurance Coverage by Gary Burtless THE BROOKINGS INSTITUTION

One Quarter Of Public Reports Having Problems Paying Medical Bills, Majority Have Delayed Care Due To Cost. Relied on home remedies or over thecounter

Trends. o The take-up rate (the A T A. workers. Both the. of workers covered by percent. in Between cent to 56.5 percent.

Newsletter December 2018

One in Five Americans Could Not Afford to Pay an Unexpected Medical Bill Without Accumulating Some Debt

Income of the Aged Chartbook, 2002

Transcription:

Disparities in Health Care Spending among Older Adults: Trends in Total and Out-of-Pocket Health Expenditures by Sex, Race/Ethnicity, and Income between 1996 and 21 Toshiko Kaneda, PhD Population Reference Bureau (PRB) James Kirby, PhD Agency for Healthcare Research and Quality (AHRQ) It is well known that older adults spend disproportionately more on health care than the rest of the population and the gap has increased dramatically over time. Trends in health care expenditures within the older population, however, are much less clear. The objectives of our paper are three-fold: (1) to examine trends in total and out-of-pocket health care expenditures for the elderly and non-elderly population over the 15-year period starting in 1996; (2) to analyze how the above trends differ across older adults by sex, race/ethnicity, and income; and (3) to explain differences observed above by examining trends in the main conditions for which different groups receive care. Data for the analysis come from the Medical Expenditure Panel Survey (MEPS). Our preliminary analyses on data up to 27 reveal important patterns in the trends of total and out-of-pocket expenditures for different groups of older adults. We describe our sample and present some initial results below. In the final paper, we will take advantage of the soon to be released data on health expenditures up to 21 and provide a more detailed discussion of the key trends observed for the full 15-year study period, offer potential explanations through the analysis of different conditions for which care was received by different groups of older adults, and discuss implications of our findings. Changes in policies related to Medicare, Medicaid, and private supplemental insurance policies will figure prominently in our discussion. For example, one of the most important changes that has taken place during the study period is the introduction of prescription drug coverage to Medicare (Part D) in 26. As discussed below, out-ofpocket expenditures for many groups, however, seem to decline prior to this. Our final analysis will explore this issue further by examining total and out-of-pocket expenditures on prescription drugs. We will contrast this with trends in inpatient, outpatient, and office-based expenditures. Because sex differences in out-of-pocket expenditures grew rapidly until 24 as discussed below, a special focus on sex-differences should be particularly enlightening. Data Data for the analysis come from 13 panels of the Medical Expenditure Panel Survey (MEPS) spanning 15 years. The MEPS is a large, ongoing nationally representative survey of US households, medical providers, and employers conducted by the Agency for Healthcare Research and Quality (AHRQ). It is uniquely suited for our purpose because

of its ability to link data on individuals to detailed information on their health care expenses. No other survey contains such a wide range of data essential for relating health spending to individual characteristics such as age, race/ethnicity, and household income. It has also been continuously conducted since 1996, making it possible to examine a 15-year trend. All expenditures are presented in 27 dollars. The number of observation for the analysis ranges from 22,61 to 39,165 per year, for a total sample size of 373,921. Preliminary Results Elderly versus non-elderly (Graphs 1a & 1b) There is a wide gap in the median annual expenditures on health care between elderly and non-elderly persons, likely reflecting both higher medical need and insurance coverage (i.e., Medicare) among the elderly compared to non-elderly. Differences in the median annual expenditures between elderly and non-elderly have increased significantly between 1996 and 27, especially since 2. The difference was around 1,6 in 1996. It increased dramatically between 2 and 24 from around 2, to 3,5. It has then remained stable until 27, the last year of our preliminary analysis. There is also a large difference between the elderly and non-elderly in out-of-pocket medical expenditures. Despite the fact that most elderly have health insurance, the elderly have higher out-of-pocket expenditures than the non-elderly. The difference, however, narrowed substantially after 24. The difference in median out-of-pocket expenditures between elderly and non-elderly persons was around 4 in 1996, increased to 9 in 24, then declined to around 6 in 26. Sex difference (Graphs 2a & 2b) Women generally have modestly higher annual expenditures than men for most years we observed. Sex differences were relatively small until 24 when they disappeared entirely. Sex differences quickly reappeared, however, and have grown rapidly since 24 to around 9 by 27. Sex differences in the median out-of-pocket health expenditures, less than 1 in 1996, grew overtime to about 3 in 24, then declined significantly since then to a little over 1 in 27. Race/ethnic difference (Graphs 3a & 3b) For race/ethnic comparisons, we examine non-hispanic Whites, non-hispanic Blacks, and Hispanics (referred to hereafter as Whites, Blacks, and Hispanics, respectively). Expenditures increased over time for the most part until 24 for Whites and 25 for Blacks and Hispanics. Expenditures have remained stable for Whites since 24 and Hispanics since 25, while they have declined by around 1 among Blacks since 25. Whites have the highest annual expenditures. While Blacks and Hispanics had similar levels until around 22, the gap widened with Blacks spending about 9 more than Hispanics in 25. The two minority groups, however, experienced a convergence of expenditures in 27 at around 3 when spending among Blacks declined as mentioned above. In 27, Whites spent around 42, about 12 more than the two minority groups.

The patterns observed in out-of-pocket expenditures are similar to those for total expenditures, except that out-of-pocket expenditures declined since 24 for Whites and Blacks and since 25 for Hispanics. The gap between Whites and the minority groups remained fairly stable over time. Whites spend about 5 more out-of-pocket on their health care, which is well over 5% more in terms of the percentage of their total health care expenditures than the two other groups. In other words, Whites pay a disproportionately higher percentage of their total health care expenditures out-of-pocket compared to Blacks and Hispanics. Difference by household income (Graphs 4a & 4b) We compare health expenditures of older adults by household income as a percent of the federal poverty line. The following categories are used: (1) below 125% of the poverty line, (2) 125-2% of the poverty line, (3) 2-4% of the poverty line, and (4) over 4% of the poverty line. All income groups experienced large increases in health care expenditures between 2 and 24. Expenditures among older adults in the lowest income category increased until 25 and then began to decline. In 25, they spent around 7 more than the income group spending the second largest amount (the second lowest income group). The second lowest income group experienced an increase in the expenditure since 26, and in 27, the two lowest income groups spent around 5 more than the two higher income groups. Out of pocket expenditures increased for all groups between 1996 and 24 by around 5. The poorest income group, despite its relatively high total expenditures as discussed earlier, spent the least out-of-pocket probably due to high rates of Medicaid coverage.

2 4 6 8 Graphs 1a & 1b Median Expenditures: Elderly vs Non-Elderly Elderly Non-elderly Median Out-of-Pocket Expenditures: Elderly vs. Non-Elderly Elderly Non-elderly

2 4 6 8 Graphs 2a & 2b Median Expenditures: Elderly by Sex Men Women Median Out-of-Pocket Expenditures: Elderly by Sex Men Women

2 4 6 8 Graphs 3a & 3b Median Expenditures: Elderly by Race/Ethnicity NH White Hispanic NH Black Median Out-of-Pocket Expenditures: Elderly by Race/Ethnicity NH White Hispanic NH Black

2 4 6 8 Graphs 4a & 4b Median Expenditures: Elderly by HH Income <125% 125%-2% 2%-4% >4% Median Out-of-Pocket Expenditures: Elderly by HH Income <125% 125%-2% 2%-4% >4%