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Article
Out-of-pocket burden of health care spending and the adequacy of the Medicare Part D low-income subsidy
Meyers Primary Care Institute Publications and Presentations
  • Becky A. Briesacher, University of Massachusetts Medical School
  • Dennis Ross-Degnan, Harvard Medical School
  • Anita K. Wagner, Harvard Medical School
  • Hassan Fouayzi, University of Massachusetts Medical School
  • Fang Zhang, Harvard Medical School
  • Jerry H. Gurwitz, University of Massachusetts Medical School
  • Stephen B. Soumerai, Harvard Medical School
UMMS Affiliation
Department of Medicine, Division of Geriatric Medicine; Meyers Primary Care Institute
Date
6-18-2010
Document Type
Article
Medical Subject Headings
Adult; Aged; Confidence Intervals; *Cost of Illness; Deductibles and Coinsurance; Drug Prescriptions; Female; Financing, Personal; Health Expenditures; Humans; Income; Male; Medicare Part D; Middle Aged; Odds Ratio; Poverty; Socioeconomic Factors; United States
Abstract
BACKGROUND: Evaluating the adequacy of Medicare prescription drug program (Part D) and its low-income subsidy (LIS) requires a comprehensive understanding of drug spending in relation to household resources. OBJECTIVE: : To estimate out-of-pocket health care costs in the year before Part D, in context of total household spending, health status, and LIS eligibility. RESEARCH DESIGN: Nationally representative cross-sectional study. SUBJECTS: Two thousand two hundred thirty-one Medicare families in the 2005/2006 Health and Retirement Study. METHODS: We assessed health care costs as a share of household resources remaining after spending on essential housing, food, personal care, and transportation. Burdensome health care costs were defined as exceeding 40% of nonessential resources. We used logistic regressions to assess the probability of incurring burdensome health expenditures, controlling for LIS eligibility. RESULTS: In the year before Part D, more than half of Medicare families [56.0%; 95% confidence interval (CI): 55.3-59.9] experienced burdensome health care costs. Families in poor health allocated a median of 68.1% [interquartile range (IQR): 35.1-82.9] of nonessential resources to health care (compared with 34.0% median; IQR 11.9-52.2 among families in excellent health, P < 0.011). Most (64%) out-of-pocket health care spending was allocated to health insurance premiums and medications. As many as 26% of Medicare families had burdensome health care costs but were not eligible for LIS assistance. CONCLUSIONS: Before Part D, burdensome health care expenditures were common in Medicare families. Our estimates of Part D and LIS benefits indicate a limited scope of relief.
Rights and Permissions
Citation: Med Care. 2010 Jun;48(6):503-9. Link to article on publisher's site
Related Resources
Link to Article in PubMed
PubMed ID
20473197
Citation Information
Becky A. Briesacher, Dennis Ross-Degnan, Anita K. Wagner, Hassan Fouayzi, et al.. "Out-of-pocket burden of health care spending and the adequacy of the Medicare Part D low-income subsidy" Vol. 48 Iss. 6 (2010) ISSN: 0025-7079 (Linking)
Available at: http://works.bepress.com/becky_briesacher/51/