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Out-of-Pocket Medical Spending Up

Jan. 6, 2009 -- Chronic medical conditions took a 39% bigger bite out of Americans' wallets in 2005 than in 1996, a new study shows.

Hypertension (high blood pressure), high cholesterol, and type 2 diabetes are among the chronic conditions covered in the study, which appears in the January/February edition of Health Affairs.

Using a government database, the researchers found that self-reported out-of-pocket spending on chronic medical conditions increased by 39% between 1996 and 2005.

Those out-of-pocket medical costs included co-payments, coinsurance, deductibles, and other medical charges not covered by insurance. Health insurance premiums weren't included.

The American population is aging, and chronic conditions become more common with age. But it wasn't just the elderly who were paying more to care for their chronic conditions.

During the years studied, it became more common for adults to have multiple chronic conditions. For instance, the number of people with three or more chronic conditions rose by 2% for people 20-44,10% for people 45-64,18% for people 65-79, and 17% for people 80 and older.

The more chronic conditions a person had, the more they paid out of pocket for treatment, note the researchers, who included Kathryn Anne Paez of the Center for Health Policy and Research at Social and Scientific Systems in Silver Spring, Md.

"Chronic conditions are more than just a health issue for the elderly. They are a household economics issue for every American," Paez says in a news release.

In 2005, average out-of-pocket spending on health care services was $741 per person, compared to $427 in 1996, according to the study. Drug costs were the biggest expense, but the data were gathered before Medicare Part D (Medicare's prescription drug plan) launched.

Many chronic conditions can be eased or avoided with a healthy lifestyle, and that would trim medical bills, Paez and colleagues note.