The Effects of Medicare on Medical Expenditure Risk and Financial Strain / Silvia H. Barcellos, Mireille Jacobson.

Format:

Book

Author/Creator:

Barcellos, Silvia H.

Contributor:

National Bureau of Economic Research.

Jacobson, Mireille.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19954.

NBER working paper series no. w19954

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2014.

Summary:

We estimate the current impact of Medicare on medical expenditure risk and financial strain. At age 65, out-of-pocket expenditures drop by 33% at the mean and 53% among the top 5% of spenders. The fraction of the population with out- of-pocket medical expenditures above income drops by more than half. Medical- related financial strain, such as problems paying bills, is dramatically reduced. Using a stylized expected utility framework, the gain from reducing out-of-pocket expenditures alone accounts for 18% of the social costs of financing Medicare. This calculation ignores the benefits of reduced financial strain and direct health improvements due to Medicare.

Notes:

Print version record

March 2014.