How Much Does Healthcare Cost A Month – In any given year, a small portion of the population accounts for a very large percentage of total health spending. We tend to focus on averages when discussing health care costs, but individuals’ health status – and therefore their need to access and use health services – varies across the lifespan. In fact, very few people spend around the average.
This continually updated collection of charts explores trends in changes in population health expenditures by analyzing data from the Medical Expenditure Survey (MEPS). The latest year with available data is 2019.
How Much Does Healthcare Cost A Month
In the United States, the majority of the population (90%) reported being in “good” or better health. Only 2% indicated that they were having health problems.
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As people age, they are more likely to have health complications and use health services. Among people aged 65 and over, 20% report their general health as “fair” or “poor”.
While there are big spenders of all ages, people aged 55 and over collectively accounted for 56% of total health spending in 2019, despite representing just 30% of the population. In contrast, people under 35 made up 45% of the population but accounted for only 21% of spending.
A small portion of the population bears most health care costs, including among older adults and people who report fair or poor health
A small portion of the population accounts for a large part of health expenditures in a year. Although we tend to focus on averages, few people spend around the average because individual health needs vary across a lifetime. Some segments of the population (the elderly and people with serious or chronic illnesses) need more and more expensive health services than those who are younger or otherwise generally need less and less expensive services.
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In 2019, 5% of the population accounted for nearly half of all health spending. The top 5% of people with the highest healthcare costs averaged $61,000 in healthcare costs per year; people with health care costs in the top 1% have an average expenditure of over $130,000 per year. At the other end of the spectrum, the 50% of the population with total health care costs less than or equal to 50
The percentile represents only 3% of all health care costs; the median spend for this group was $374 in 2019. About 14% of the population had $0 in health care expenses in 2019.
Health costs are concentrated even in populations with relatively high average health costs. Among people who reported fair or poor health, the 10% of people with the highest health care costs accounted for 50% of total health care costs.
There is considerable variation in spending between over-65s and under-65s, with younger people facing more concentrated health costs. In 2019, just over half of all health spending among adults aged 18 to 64 was concentrated among people in the richest 5% of total health spending, while nearly half of all health spending among adults aged 65 and over more was concentrated on people in the top 10%. of total health spending.
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Although health care costs for families include higher and lower costs within each family, the distribution of family costs is almost as skewed as the distribution of individual costs. In 2019, 1% of all households accounted for 13% of all household health costs. Households that are among the top 5% in health spending account for about 35% of all spending in that category.
Direct expenses include direct payments to providers and cost-sharing, but do not include direct premiums or contributions to health coverage. Health care costs are equally concentrated among people with high health care needs. This small portion of the population accounts for a significant portion of total health expenditures in a year.
Just 1% of the population accounted for 24% of all direct health costs in 2019. People in the richest 5% accounted for 49% of direct costs. At the other end of the spectrum is the population with expenditures less than or equal to 50
On average, people in the richest 1% by direct spending paid about $19,500 on health care annually, and people in the richest 10% spent an average of $5,390 in direct spending. out of pocket annually. People occupying 50% of their own money base spent an average of $28 out of pocket.
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When it comes to hospitalization costs, people in the bottom 50% of costs had virtually no hospitalization costs, compared to over $22,000 in annual hospitalization costs for people in the top 5%. Patients with higher consumption of health care also have a higher consumption of prescription drugs. With prescription drugs, people in the top 5% had average healthcare costs of more than $13,000 per year, compared with an overall average of nearly $1,400.
People who are in the top 5% in health spending account for most of total health spending for some services. Patients who are in the top 5% of healthcare costs account for 73% of all home healthcare costs and 77% of all hospital costs. They also account for nearly half of all prescription drug spending.
Average direct expenses for all types of services are also concentrated among the highest users. In 2019, people in the top 5% by health spending spent an average of $1,150 on prescription drugs, while people in the bottom 50% spent an average of $8. . People in the top 5% on out-of-pocket expenses spent $487 on hospital admissions, while people in the bottom 50% had virtually no hospital admissions or out-of-pocket expenses. People who are among the top 5% in out-of-pocket spending account for 96% of home health care spending, 64% of inpatient spending, and 51% of all outpatient out-of-pocket spending. 🇧🇷
People who are uninsured for a full year have, on average, much lower total health care costs across all age groups than people who are insured for part of the year or all of the year. This could be because healthier people are more likely to be without insurance, or because people who are uninsured are more likely to be without necessary medical care.
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In children, there is no significant difference in health expenditure between genders. Average health care costs rise through adulthood for both men and women, but at slightly different rates. Women have higher healthcare costs than men in their 20s, 30s and early 40s, mainly due to pregnancy and maternity care. Differences in expenditure between men and women are not statistically significant in older age groups.
In general, whites in the United States have significantly higher average total health care costs than other racial and ethnic groups. People who identified as Asian or Hispanic had the lowest average healthcare costs in each age group. Disparities in health care costs by race can be caused by many factors, including health status, insurance coverage, age distribution and access to care. People of color are, on average, younger than white people, Hispanics are more likely to be uninsured, and Hispanics and blacks are more likely to report delays or going without medical care because of the cost. Private health plans tend to pay higher prices for services than public plans. About three in four Asians and whites are enrolled in private health plans at some point in a given year, while about one in two blacks and Hispanics are covered by private plans at some time in a given year. Immigrants have, on average, lower health care costs than those born in the United States. Asians and Hispanics have the largest share of the foreign-born population at around 66% and 33% respectively.
People with a current or past diagnosis of certain chronic health conditions have, on average, much higher costs than people without these conditions. A current or past diagnosis of chronic health conditions is also associated with higher health care costs for adults over age 65, although the difference is smaller on average compared to the overall average for all adults. Emphysema is associated with higher mean consumption among those already diagnosed with a chronic condition.
People diagnosed with a serious or chronic illness have significantly higher direct costs. Among all adults, people diagnosed with conditions such as cancer or arthritis may have twice as much out-of-pocket expenses as those who are undiagnosed.
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Among adults over 65 diagnosed with emphysema, asthma, stroke, hypertension and diabetes, there was no significant difference in their out-of-pocket expenditures from those not diagnosed with the disease. In contrast, direct costs are greater for older adults diagnosed with cancer, arthritis, heart disease and cholesterol than for those who have never been diagnosed.
This set of charts is based on the household component of the 2019 Medical Expenditure Panel Survey (MEPS). The MEPS is a nationally representative household survey of the non-institutionalized US civilian population. Estimates cover the MEPS survey design, including estimation weight, sampling strata, and the primary sampling unit. Health costs include individual out-of-pocket payments and payments made by payers for care provided.