When Working-Age People Consume Less Medical Care, Medicare Beneficiaries Consume More — but They Get Little, If Any Benefit
There has been a lot of discussion recently about how people who lost health insurance as a result of the post-2008 recession reduced their use of medical services. But when working-age people consume fewer medical services, Medicare patients take up the slack:
Reductions in the demand for medical services among adults below age 65 are not associated with reductions in the total quantity of physician services supplied. The increased Medicare utilization that accompanies lower demand among those under 65 has few, if any, benefits for Medicare patients.
“But when working-age people consume fewer medical services, Medicare patients take up the slack.”
Could be due to the over 65 crowd are more likely to visit the doctor more regularly than working age individuals.
Well going to the doctor more doesn’t necessarily mean you will increased benefit out of it.
People will likely benefit more from an annual visit than quarterly visits. Especially if they are in good health, the extra 3 visits would lead to very little benefit.
The only ones who would benefit are the sick. The elderly have a higher chance of ailments, which is what causes them to increase health care consumption.
Maybe now you can tell grandma not to go to the doctor so much anymore.
“Reductions in the demand for medical services among adults below age 65 are not associated with reductions in the total quantity of physician services supplied.”
So reductions medical services is perhaps due to lack of incentives? Working age individuals who are healthy are generally not the best at demanding health care services.
Its especially true for people on the younger end of the spectrum.
The elderly are certainly incentivized to consume health care services.
Well yeah, because that’s their whole day.
It is like the same ones who use coverage from ObamaCare. The older crowd will always use more health services than the younger.
Well now it will likely reduce even further after ObamaCare.
It says its not associated with supply of physician services, but what happens when supply does decrease?
Interesting how when Medicare beneficiaries increase use of medical services, it provides them with very little benefit. Good post.
To some degree, physician visits and medical care are consumer goods that reflect peoples’ preferences and priorities. When cost-sharing increases the cost of seeking care, many people balk. On the other hand, many seniors (in the absence of employment) develop day-to-day rituals to fill their days, include physician visits, pharmacy stops and socializing with other seniors about which doctor they see.
Several years ago I remember reading how many seniors were reluctant to move to mail-order drug delivery because stopping by the pharmacy was part of their monthly ritual. I asked an executive with a PBM about it and he confirmed that many seniors visit the pharmacy once a month because they’ve done that for years.