Medicare spending trends 2010-2016: increase in prescription drug spending more than offsets lower beneficiary costs for other services

Medicare spending trends 2010-2016: increase in prescription drug spending more than offsets lower beneficiary costs for other services

Collection:
Health Policy and Services Research
Series Title(s):
Data brief (Commonwealth Fund)
Author(s):
Schoen, Cathy, author
Willink, Amber, author
Davis, Karen, author
Contributor(s):
Commonwealth Fund, issuing body.
Publication:
[New York, N.Y.] : The Commonwealth Fund, November 2019
Language(s):
English
Format:
Text
Subject(s):
Financing, Personal -- trends
Health Expenditures -- trends
Medicare -- economics
Medicare -- trends
United States
Genre(s):
Technical Report
Abstract:
ISSUE. From 2010 through 2016, total Medicare spending per beneficiary was remarkably stable. We know less about how beneficiaries fared in terms of out-of-pocket spending for health care services. GOAL. To inform discussions of Medicare cost-control efforts and potential benefit design reforms, this data brief examines the trend in total and out-of-pocket spending from 2010 to 2016, with a focus on mix of expenditures by type of service as well as total spending per beneficiary. METHODS. Analyzes the Medicare Current Beneficiary Survey and Cost Supplement for 2010 to 2016. FINDINGS. Stability in total and out-of-pocket spending masks a marked shift in spending by service. There was a sharp increase in total and out-of-pocket spending on prescription drugs; total spending was up by $1,000 per person, a 38 percent increase. Out-of-pocket spending on drugs increased by 16 percent. Increased total spending on drugs was partially offset by a 22 percent decrease spending on hospital services and a 30 percent decrease on skilled nursing home care. Notably, Medicare beneficiaries spent more out-of-pocket on prescription drugs in 2016 than on doctors' visits and hospital care combined. CONCLUSION. Findings highlight a need for policy changes that will lower drug prices and costs and provide a more protective benefit design.
Copyright:
Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY license. (More information)
Extent:
1 online resource (1 PDF file (8 pages))
Illustrations:
Illustrations
NLM Unique ID:
101758877 (See catalog record)
Permanent Link:
http://resource.nlm.nih.gov/101758877