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Understanding Healthcare Costs: The Concentration in Very Sick Patients

Explore the distribution of health expenditures in the US population to understand why HSAs won't solve the cost problem. Gain insights from expenditure thresholds in 1997 data. Source: A.C. Monheit's study in Medical Care.

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Understanding Healthcare Costs: The Concentration in Very Sick Patients

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  1. Figure 32. HSAs Won’t Solve the Cost Problem:Most Costs Are Concentrated in the Very Sick Distribution of health expenditures for the U.S. population, by magnitude of expenditure, 1997 Expenditurethreshold (1997 dollars) 1% 5% 10% $27,914 27% 50% $7,995 55% $4,115 69% $351 97% Source: A.C. Monheit, “Persistence in Health Expenditures in the Short Run: Prevalence and Consequences,” Medical Care 41, supplement 7 (2003):III53–III64.

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