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Medicare News

Seniors Happy with Medical Care Regardless of How Much Medicare Spends on Them

Spending varies widely but perceptions of medical care quality does not

May 27, 2008 – Many senior citizens would be surprised by the wide differences in per capita expenditures by Medicare from area to area across the U.S. A new study has found, however, that those Medicare beneficiaries in the lowest expenditure areas are just as happy – if not more so – with their medical care as are those in the high expenditures areas.

The survey of Medicare beneficiaries suggests that more regional spending on medical care does not improve patients’ perceptions of the medical care they receive, according to a report in the May 28 issue of the Journal of the American Medical Association (JAMA).

 

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It is well documented that per capita expenditures by Medicare vary widely across the country, and that differences in health status do not account for these variations. These researchers, however, found little is known about whether beneficiaries residing in low-expenditure regions perceive receiving lower-quality of care than those in high-expenditure regions.

Floyd J. Fowler Jr., Ph.D., of the University of Massachusetts Boston, and colleagues report results of a detailed survey of Medicare patients which included a number of questions about the perceptions of quality of health care from the patients’ own perspectives. The researchers compared these answers with the overall level of per capita expenditure within various regions in the U.S., to evaluate whether more spending leads to a more positive patient experience with the health care system.

Each respondent (answers from 2,515 patients were used for this study) was allocated to one of five quintiles, depending on sex, average age, and race-adjusted per capita Medicare expenditures based on Centers for Medicare & Medicaid Services claims data.

The survey included three questions about perceived unmet need for care, four questions about the perceived quality of ambulatory care and three questions rating the perceived quality of overall care.

The researchers found that per capita expenditures were highly related to receiving more medical care, such as average number of ambulatory visits to physicians in the past year and more cardiac tests (respondents reporting receiving tests in past year, 40.1 percent in the lowest average expenditures quintile, to 63.5 percent in the highest average expenditures quintile).

However, 7 of the 10 measures of perceived quality, including perceived unmet needs for tests and treatment (respondents reporting unmet needs, 3.9 percent to 5.0 percent) and spending enough time with physicians (respondents reporting adequate time, 88.7 percent to 87.0 percent), were unrelated to expenditures.

The overall rating of perceived quality of care, however, was higher in the lower-expenditure areas (respondents reporting overall care rating of 9 or 10, 63.3 percent to 55.4 percent).

“On average, those in the lower-expenditure areas reported no more perceived unmet needs for care and a perceived quality of ambulatory care similar to that in high-expenditure areas; furthermore, they rated the overall quality of their health care at least as highly as those in the high-expenditure areas,” the authors write.

Editorial: Spending on medical care - more is better?

“The article by Fowler et al adds to the discussion concerning whether the economic principles of ‘more is better,’ diminishing returns, and comparisons with others apply in health care,” write Gerard F. Anderson, Ph.D., and Kalipso Chalkidou, M.D., Ph.D., of the Johns Hopkins Bloomberg School of Public Health, Baltimore, in an accompanying editorial.

“When patients are able to access good-quality objective information on the risks and benefits of the various treatment alternatives, they do not necessarily choose more aggressive or more costly interventions.

“Currently, the United States spends more than twice as much as most other industrialized countries on health care services, some regions of the United States spend twice as much as other regions of the country, and some institutions or clinicians are twice as expensive as others.

“In terms of outcomes and satisfaction, the United States may have reached the position of diminishing returns for spending on medical care.”

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