Out-Of-Pocket Medical Spending For Care Of Chronic Conditions

TLDR

Policymakers use cost sharing and benefit design to control health spending, making it crucial to assess their impact on individuals with chronic conditions and families. The study analyzed 1996 MEPS data to compare out‑of‑pocket medical spending between individuals with and without chronic conditions. Mean out‑of‑pocket spending rises with the number of chronic conditions, varies by age and insurance, and prescription drug costs are substantial for both elderly and nonelderly patients.

Abstract

We examined out-of-pocket medical spending by persons with and without chronic conditions using data from the 1996 Medical Expenditure Panel Survey (MEPS). Our results show that mean out-of-pocket spending increased with the number of chronic conditions. The level of this spending also varied by age and insurance coverage, among other characteristics. Out-of-pocket spending for prescription drugs was substantial for both elderly and nonelderly persons with chronic conditions. As policymakers continue to use cost sharing and design of benefit packages to contain health spending, it is important to consider the impact of these policies on persons with chronic conditions and their families.