Low-income Medicare beneficiaries are more likely than their wealthier counterparts to receive observation care and potentially face high out-of-pocket expenses as a result, according to a study published in The American Journal of Medicine.
For the study, researchers retrospectively examined more than 56 million 2013 Medicare Part B claims to identify 132,539 observation stays. They also analyzed U.S. Census Bureau income and poverty data from 2013.
The study found Medicare beneficiaries in the poorest U.S. counties were nearly 25 percent more likely than those in wealthier counties to have multiple observation visits and 17 percent more likely to experience high out-of-pocket costs due to observation stays. Observation stays are considered outpatient visits and people who experience multiple observation visits — which are not covered by Medicare Part A — can experience higher costs.
"Poverty predicts high use of observation care. The poor or near poor may be at highest risk for high liability," the study authors concluded.
Read more about the study here.