Long-Term Trends In The Concentration Of Medicare Spending

Medicare spending is concentrated among a few high-cost beneficiaries who are often targeted by cost-saving interventions. The Continuous Medicare History Sample file was used to analyze trends in the spending concentration over thirty years. Annual expenditures became less concentrated over time, a...

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Bibliographic Details
Published inHealth Affairs Vol. 26; no. 3; pp. 808 - 816
Main Author Riley, Gerald F
Format Journal Article
LanguageEnglish
Published United States Health Affairs 01.05.2007
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Summary:Medicare spending is concentrated among a few high-cost beneficiaries who are often targeted by cost-saving interventions. The Continuous Medicare History Sample file was used to analyze trends in the spending concentration over thirty years. Annual expenditures became less concentrated over time, although the year-to-year persistence of person-level high costs remained strong. There was an increase in the prevalence of chronic conditions among high-cost beneficiaries, which supports the rationale for focusing cost-saving interventions on chronic disease management. However, the decrease in concentration may reduce the potential savings from interventions focused on such beneficiaries.
ISSN:0278-2715
1544-5208
DOI:10.1377/hlthaff.26.3.808