Briefing
How Well Insured Are Older Americans?
Henry, Erin; Jones, John Bailey; Sow, Pauline (2023-06)
Using a combination of survey and administrative data, we calculate the portion of medical expenditures that retirees pay out of pocket. We find that retirees are mostly well insured against medical spending risk, with over 80 percent of their spending covered by Medicare, Medicaid or other insurers. We also find, however, that individuals with extremely high medical expenses pay a larger — not smaller — share out of pocket than those with more average expenses. Much of this difference is attributable to nursing home stays, which are typically uncovered by most insurers.
Richmond Fed Economic Brief , Volume 23 , Issue 19