While discussions about the costs of health care often focus

on the average amount spent per person, spending on

health services is actually quite skewed. About ten percent

of people account for 63% of spending on health services;

21% of health spending is for only 1% of the population. At

the other end of the spectrum, the one-half of the

population with the lowest health spending accounts for just

over 3% of spending.

 

 

 

 

4 Kaiser Family Foundation calculations using data from U.S. Department of Health and

Human Services, Agency for Healthcare Research and Quality, Medical Expenditure

Panel Survey (MEPS), 2006. MEPS is a national survey of individual members of

households and their health care providers that produces nationally representative data

on, among other things, health care use and spending. See

http://www.meps.ahrq.gov/mepsweb/survey_comp/household.jsp. Estimates of national

health spending obtained from the MEPS differ in several ways from the estimates from

the NHEA, which is the source of data for most of the estimates in this document. The

MEPS provides estimates for the civilian, noninstitutionalized population, which means

that health spending by people in the armed forces or who are institutionalized for long

periods (e.g., nursing home residents) are not included in MEPS estimates but are

included in the NHEA. MEPS and the NHEA also differ in the way that they categorize

certain health expenditures (e.g., hospital-based home health services). See Sing,

Banthin, Selden, Cowan, and Keegan, “Reconciling Medical Expenditure Estimates

from the MEPS and NHEA, 2002,” Health Care Financing Review, vol. 28, no. 1, Fall

2006, http://www.cms.hhs.gov/HealthCareFinancingReview/.