Out-of-Pocket Costs and Affordability of Medicare
Out-of-Pocket Health Spending by Medicare Beneficiaries Age 65 and Older: 1997 Projections
Research Report
David Gross, AARP Public Policy Institute
Mary Jo Gibson, AARP Public Policy Institute
Craig Caplan, AARP Public Policy Institute
Normandy Brangan, AARP Public Policy Institute
John Corea, The Lewin Group
December 1997
Out-of-pocket health care spending is particularly burdensome for lower income beneficiaries and for older beneficiaries. Those with incomes below the federal poverty level are projected to pay, on average, 35 percent of their incomes on out-of-pocket health costs. More significantly, however, those with incomes below the federal poverty level who do not receive Medicaid assistance are projected to pay, on average, about half their income on out-of-pocket health costs. This 30-page issue paper uses data from a survey of Medicare beneficiaries to project estimates of out-of-pocket health care spending by beneficiaries age 65 and older. It separates (a) out-of-pocket projections for beneficiaries in the traditional program from those enrolled in HMOs; and (b) out-of-pocket costs for beneficiaries who receive Medicaid assistance from those who do not.
Pub ID: 9705