Cover: Medicare Beneficiaries' Costs of Care in the Last Year of Life

Medicare Beneficiaries' Costs of Care in the Last Year of Life

End-of-Life Costs Are Only Slightly Higher for Persons Who Died Than for Survivors with Similar Characteristics

Published in: Health Affairs, v. 20, no. 4, July/Aug. 2001, p. 188-195

Posted on RAND.org on January 01, 2001

by Christopher Hogan, June R. Lunney, Jon Gabel, Joanne Lynn

This paper profiles Medicare beneficiaries' costs for care in the last year of life. About one-quarter of Medicare outlays are for the last year of life, unchanged from twenty years ago. Costs reflect care for multiple severe illnesses typically present near death. Thirty-eight percent of beneficiaries have some nursing home stay in the year of their death; hospice is now used by half of Medicare cancer decedents and 19 percent of Medicare decedents overall. African Americans have much higher end-of-life costs than others have, an unexpected finding in light of their generally lower health care spending.

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