Dive Brief:
- Based on the latest available data from a nationally representative survey of Medicare enrollees, an analysis by the Kaiser Family Foundation released July 21 shows that beneficiaries themselves paid on average $4,734 for their care in 2010. That takes into account supplemental coverage, such as retiree health benefits or Medigap policies.
- Medicare beneficiaries with significant healthcare needs spent on average $11,500: more than twice as much on premiums and services as a typical beneficiary.
- Out-of-pocket spending increased significantly for beneficiaries with multiple hospitalizations. Beneficiaries with a hospital readmission within 30 days of discharge spent about $1,200 more on services than those with only one inpatient stay in 2010, including higher spending for medical providers and supplies, inpatient hospital services, and skilled nursing facility services.
- The most elderly beneficiaries, aged 85 and older, spent three times as much out-of-pocket in 2010 as did those between the ages of 65 and 74 ($5,962 versus $1,926). Women paid more ($5,036) on average than men ($4,363).
Dive Insight:
The Kaiser Family Foundation notes that In order to contain healthcare spending, some policymakers have proposed increasing Medicare premiums and cost-sharing. But, given that half of all Medicare beneficiaries earned less than $23,500 in 2013, the foundation cited the importance of carefully considering the cost of care for Medicare patients and total out-of-pocket burden they already face.
The bottom line? "These findings suggest that ongoing efforts to improve the coordination of care to prevent avoidable hospital readmissions and manage post-acute services could not only reduce Medicare's costs, but also could significantly lower beneficiaries' out-of-pocket spending," Kaiser Family Foundation said.