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TRENDS
How Much ‘Skin In The Game’ Do Medicare Beneficiaries Have? The Increasing Financial Burden Of Health Care Spending, 1997–2003
Patricia Neuman,
Juliette Cubanski,
Katherine A. Desmond and
Thomas H. Rice
Rising health costs and an aging population present critical policy challenges. This paper examines the financial burden of out-of-pocket health spending among Medicare beneficiaries between 1997 and 2003. Over this period, median out-of-pocket spending as a share of income increased from 11.9 percent to 15.5 percent. In 2003, the 25 percent of beneficiaries with the largest burden spent at least 29.9 percent of their income on health care, while 39.9 percent spent more than a fifth of their income on health care. Results suggest that sustained increases in out-of-pocket spending could make health care less affordable for all but the highest-income beneficiaries.
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