Out-of-pocket health spending between low-and higher-income populations: who is at risk of having high expenses and high burdens?

Abstract:

OBJECTIVE:We studied the effects of health insurance, health care needs, and demographic and area characteristics on out-of-pocket health care spending for low and higher income insured populations. MATERIALS AND METHODS:We used the 2002 National Survey of America's Families to analyze out-of-pocket health spending. People were classified into 3 levels of expenses based on their out-of-pocket health care spending and 3 levels of financial burden based on spending as a share of family income. We used a multinomial logit model to estimate the effect of insurance status and other factors on expense and burden levels. RESULTS:Public insurance appears to offer the best financial protection from high out-of-pocket expenses and financial burden for those who are eligible. Families with private nongroup coverage have the highest odds of being in the high-expense and high-burden categories for all incomes. For higher-income families, having a family member in fair or poor health is a significant risk factor for high out-of-pocket expenses and financial burden. Having higher penetration of health maintenance organizations in an area appears to lower the odds of being in the high-burden category for all families. CONCLUSIONS:Health insurance may not prevent people from having high health care spending. Low-income people with serious health needs appear to be financially constrained and spend less on health care relative to higher-income people, and the presence of health maintenance organizations may help reduce out-of-pocket health care spending.

journal_name

Med Care

journal_title

Medical care

authors

Shen YC,McFeeters J

doi

10.1097/01.mlr.0000199692.78295.7c

keywords:

subject

Has Abstract

pub_date

2006-03-01 00:00:00

pages

200-9

issue

3

eissn

0025-7079

issn

1537-1948

pii

00005650-200603000-00002

journal_volume

44

pub_type

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