Out-of-Pocket Health Spending by Medicare Beneficiaries Age 65 and Older: 1997 Projections
December 1997
American Association of Retired Persons
Lewin contact: Lisa Alecxih
This study found that Medicare beneficiaries spend on average two out of every ten dollars in income on out-of-pocket health expenses, excluding the costs of home health and nursing home care. In addition, the report found that older Medicare beneficiaries living below the poverty line spend on average more than one-third of their yearly income on out-of-pocket health care costs. A first-time look at the magnitude of out-of-pocket spending for the nearly 60 percent of poor Medicare beneficiaries who do not receive Medicaid, the study provides the first comparison of out-of-pocket costs paid by beneficiaries enrolled in HMOs versus those in traditional fee-for-service programs.