Household out‐of‐pocket health care expenditure trends: 1980–95

Abstract

AbstractThis descriptive study examines household out‐of‐pocket expenditure trends for health insurance, medical services, prescription drugs and medical supplies using the 1980–95 Consumer Expenditure Surveys. Constant dollar out‐of‐pocket expenditures for health insurance have risen sharply over time while constant dollar out‐of‐pocket expenditures for medical services have declined, perhaps reflecting health care market changes. Older consumers spent more in constant dollars and had higher budget shares for all aspects of health care than younger consumers. Although Medicare and Medicaid provide access to basic health care, results indicate that, for older consumers who are poor, health care expenditures may still crowd out spending for other necessities.