Predictive modeling of U.S. health care spending in late life

Author:

Einav Liran12ORCID,Finkelstein Amy13,Mullainathan Sendhil14ORCID,Obermeyer Ziad5

Affiliation:

1. National Bureau of Economic Research, Cambridge, MA 02138, USA.

2. Department of Economics, Stanford University, Stanford, CA 94305, USA.

3. Department of Economics, Massachusetts Institute of Technology, Cambridge, MA 02142, USA.

4. Department of Economics, Harvard University, Cambridge, MA 02138, USA.

5. Department of Emergency Medicine and Health Care Policy, Harvard Medical School, Boston, MA 02115, USA.

Abstract

End-of-life health care spending In the United States, one-quarter of Medicare spending occurs in the last 12 months of life, which is commonly seen as evidence of waste. Einav et al. used predictive modeling to reassess this interpretation. From detailed Medicare claims data, the extent to which spending is concentrated not just on those who die, but on those who are expected to die, can be estimated. Most deaths are unpredictable; hence, focusing on end-of-life spending does not necessarily identify “wasteful” spending. Science , this issue p. 1462

Funder

National Institutes of Health

National Institute on Aging

National Institute for Health Care Management Foundation

Publisher

American Association for the Advancement of Science (AAAS)

Subject

Multidisciplinary

Reference39 articles.

1. Long-Term Trends in Medicare Payments in the Last Year of Life

2. A. Gawande “Letting go ” New Yorker 2 August 2010; www.newyorker.com/magazine/2010/08/02/letting-go-2.

3. E. Porter “Rationing health care more fairly ” New York Times 21 August 2012; www.nytimes.com/2012/08/22/business/economy/rationing-health-care-more-fairly.html.

4. The Economics of Dying -- The Illusion of Cost Savings at the End of Life

5. Medicare Payment Advisory Commission “Report to the Congress: Selected Medicare Issues ” June 1999; https://babel.hathitrust.org/cgi/pt?id=mdp.39015046749704;view=1up;seq=3.

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