Out-of-Pocket Health Care Spending at Older Ages: Do Caregiving Arrangements Matter?

Author:

Friedman Esther M.1ORCID,Beach Scott R.2,Schulz Richard2

Affiliation:

1. Institute for Social Research, University of Michigan, Ann Arbor, MI, USA

2. University Center for Social and Urban Research, University of Pittsburgh, Pittsburgh, PA, USA

Abstract

Identifying the correlates of out-of-pocket (OOP) health care spending is an important step for ensuring the financial security of older adults. Whether or not someone has a family member providing assistance is one such factor that could be associated with OOP spending. If family caregivers facilitate better health, health care spending could be reduced. On the other hand, costs would be higher if family members facilitate more (or more costly) care for loved ones. This paper explores the relationship between caregiving arrangements and OOP spending using data from 5045 individuals in the 2000–2016 Health and Retirement Study with Medicare coverage and caregiving needs. We do not find a relationship between family caregiving and OOP health care costs, overall. However, among those with Medicare HMO insurance, having a family caregiver is associated with more spending than having no helper. This is mainly due to differences in spending on prescription medications.

Funder

National Institute on Disability, Independent Living, and Rehabilitation Research

Publisher

SAGE Publications

Subject

Geriatrics and Gerontology,Gerontology

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