Restructure Medicare & Medicaid: Social Factors—
Older People Spend 2x More per Year on Healthcare than Younger Americans
Share of Population vs. Healthcare Spending by Age Group, 2004 $16,000
= $14,000 $12,000 $10,000 $8,000
$6,000
$4,000
Annual Per Capita Healthcare Spending ($)
$2,000
Population & Healthcare Spending % Share of Total
$0 0-18 19-64
= Share of Population = Share of Healthcare Spending © Annual Healthcare Spending per Person
KP Source: Dept. of Health & Human Services, US Census Bureau. www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 285
Restructure Medicare & Medicaid: Social Factors— ~28% of Annual Medicare Spending Geared Toward End-of-Life Care (Last 12 Months)
2008 Medicare Total Benefit Expense
$363B * People 65+ spent $14,797 per Medicare Spending on year on healthcare on average in Recipient’s Final Year of Life $101B 2004, 3x what working-age
people (19-64) spend.
* It’s notable that ~28% of average Medicare recipient spending occurs in the final year of life and 12% occurs in the final two months of
life.
Sources: CMS, Medpac, Report to the Congress: Medicare Payment Policy, 3/10 www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 286
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