On the Rise: Out-of-Pocket Healthcare Spending in 2017
Farrell, Diana and Fiona Greig. "On the Rise: Out-of-Pocket Healthcare Spending in 2017." JPMorgan Chase Institute, 2018.
32 Pages Posted: 26 Nov 2018
Date Written: October 24, 2018
The JPMorgan Chase Institute set out to understand families' out-of-pocket healthcare expenditures and the financial burden they imposed on families over time. Building off a de-identified sample of 4.7 million families with Chase checking accounts, we extended the JPMorgan Chase Institute Healthcare Out-of-pocket Spending Panel (JPMCI HOSP) data asset to include 2017 data, allowing us to explore healthcare out-of-pocket spending trends, as well as a first-ever look at year-over-year trends at the state and country level for different demographic groups. We found that year-over-year growth in out-of-pocket healthcare spending levels accelerated since 2014 to 8.5 percent in 2017. The burden of healthcare spending as a percent of take-home income ticked up slightly. Additionally, in 2017 high-income families experienced the fastest growth in healthcare spending, while low-income families experienced the highest growth in healthcare spending burden. Moreover, families in Utah spent the most on and were the most burdened by out-of-pocket healthcare spending, while families in California experienced the highest growth in spending levels. Finally, out-of-pocket healthcare spending grew the most at hospitals and 'other medical services, equipment, and labs' and decreased at drug stores for the third consecutive year. These findings show that out-of-pocket health care costs are on the rise and consuming a larger share of household budgets. Out-of-pocket healthcare costs affect decisions about whether and when to seek medical care, so it is critical that we continue to monitor the levels and trends in out-of-pocket healthcare costs borne by families, as we seek to do with the JPMCI HOSP data asset.
Keywords: Healthcare Spending, Households
JEL Classification: I1, D1, R1
Suggested Citation: Suggested Citation