Which chronic diseases lead to the most out-of-pocket spending?

Featured Faculty: Joelle Fong Assistant Professor, Lee Kuan Yew School of Public Policy

New research about out-ofpocket expenses for Medicare recipients in the United States suggests that health professionals and policymakers need a better understanding of the financial toll that some chronic diseases have on the elderly.

“Interventions to promote more cost efficient healthcare services and consumer choices can help older adults better cope with these expensive long-lasting conditions and reduce the overall burden of non-communicable diseases,” writes the study’s author Joelle Fong, who is an Assistant Professor at the Lee Kuan Yew School of Public Policy.

The study, Out-of-pocket health spending among Medicare beneficiaries: Which chronic diseases are most costly? found that major chronic health conditions can impose significant out-of-pocket (OOP) expenses for recipients of the US government’s insurance scheme for older Americans. For some illnesses, the costs are up to 30% higher than for other conditions.

Medicare provides health coverage for 58 million Americans, most of them aged 65 or older. The programme has received significant attention in this year’s US electoral cycle, as most Democratic candidates wanted to expand the programme to cover more people, although the presumptive nominee Joe Biden wants to drop the age requirement to 60.

Under Medicare, hospital coverage is free (although there is a deductible) but there is a premium for coverage of doctor’s visits and outpatient services. The premium is adjusted according to income, with wealthier Americans paying more.

Medicare typically pays for 80% of approved medical costs or for 60 days of hospital care. This means that there can be significant out-ofpocket expenses. Many seniors buy supplemental insurance as a result. Among the study’s sample group, 45% had some form of private health insurance plan and 15% had private long-term care insurance.

Chronic diseases have a huge impact on older Americans, and they’re becoming more common among younger Americans too. As many as two-thirds of Americans over 65 have more than one chronic illness, according to the Centres for Disease Control and Prevention.

Read the full article https://nus.edu/37Sm5JJ