In order to contain healthcare spending, some policymakers have proposed increasing Medicare premiums and cost-sharing, according to the Kaiser Family Foundation.
Given that half of all Medicare beneficiaries earned less than $23,500 in 2013, it's important to carefully consider the cost of care for Medicare patients and the total out-of-pocket burden they already face, according to the Foundation. Based on the Foundation's analysis of data from the Medicare Current Beneficiary Survey Cost and Use file, here are six things to know about beneficiaries' out-of-pocket spending in 2010.
1. In 2010, Medicare beneficiaries paid an average of $4,734 out-of-pocket for their care, including premiums for Medicare and supplemental insurance, as well as the cost of medical and long-term care services.
2. Medicare and supplemental insurance premiums accounted for 42 percent of average out-of-pocket expenditures in 2010.
3. The remaining 58 percent of spending went toward long-term care facility costs (18 percent), medical providers/supplies (14 percent), prescription medications (11 percent) and dental care (6 percent).
4. Beneficiaries 85 and older spent three times as much out-of-pocket in 2010 as those ages 65 to 74 ($5,962 versus $1,926). Women also paid more ($5,036) on average than men ($4,363).
5. Average out-of-pocket spending also rises as health status declines. Beneficiaries who self-reported poor health spent an average of $4,505 out-of-pocket in 2010, compared with $1,774 spent by those who said they were in excellent health.
6. From 2000 to 2010, average total out-of-pocket spending for Medicare beneficiaries increased by 44 percent, from $3,293 to $4,734. During that decade, total out-of-pocket costs grew at an average annual rate of 3.7 percent.
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