The Cost of Medicare

Increased Medicare copays may lead to fewer doctor visits, more and longer hospital stays.
The AP (1/28, Chang) reports, "Higher Medicare copays, sometimes just a few dollars more, led to fewer doctor visits and to more and longer hospital stays," according to a study appearing in the New England Journal of Medicine. The finding "confirms what many policymakers had feared: cost-shifting moves can backfire."
The Wall Street Journal (1/27, Mathews) "Health Blog" reported that Medicare enrollees residing in low-income areas and patients with high blood pressure, diabetes, or a history of heart attack were particularly impacted by higher copays.
The increased copays generated "an extra $7,150 in revenue for every 100 patients," but the study showed that "it would cost the plans an additional $24,000 in hospital costs in one year," the Boston Globe (1/27, Cooney) "White Coat Notes" blog reported.
The St. Petersburg Times (1/28, Martin) reports that the study concluded that "increasing the patient's share of the cost...may not reduce (or may even increase) total healthcare spending and may result in worse health outcomes." Experts noted that seniors "are more likely to have fixed incomes and to rely on market-vulnerable investment income." Experts also said that seniors "tend to suffer from chronic conditions that require constant medical care."