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Average Health Expenditures for Medicare Elderly Beneficiaries, 2002

Federal Medicare Program Payments

$5,141

Part B Premium

$832

Cost-sharing and Other Costs

$638

Out-of-Pocket for Non-Medicare Health Costs

$2,287

Total and Beneficiary Estimated Out-of-Pocket Spending*

Beneficiary

Out-of-Pocket for Medicare Services

Source: Maxwell, Storeygard, Moon, Modernizing Medicare Cost-Sharing: Policy Options and Impacts on Beneficiary and Program Expenditures, The Commonwealth Fund, November 2002.

* Urban Institute 2002 Simulation Model:  Out of pocket includes: Part B premium, Medicare cost sharing, other premiums and non-covered services, drugs, vision and dental.

57.8%

25.7%

7.2%

9.4%

Average out-of-pocket spending 2002 = $3,757

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