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. 1999 Winter;21(2):119–164.

Medical Expenditures for Major Diseases, 1995

Thomas A Hodgson, Alan J Cohen
PMCID: PMC4194655  PMID: 11481772

Abstract

This article distributes the Health Care Financing Administration's (HCFA) estimates of 1995 personal health care expenditures (PHCE) according to sex, age, and diagnosis for each type of health care service. Aggregate and per capita expenditures are reported for 18 broad categories of disease classified according to the International Classification of Diseases (ICD-9-CM). Special emphasis is given to expenditures for persons age 65 or over, the segment of the population with the highest expenditures. These results show how the relative importance of medical conditions and type of health services differs between the sexes and changes with increasing age.

Introduction

National health expenditures (NHE) were $991 billion in 1995, and accounted for 13.6 percent of gross domestic product (Levit et al., 1997). Almost 88 percent of NHE, $869 billion, was for personal health care. Knowing how PHCE are distributed among medical conditions, how much spending for each disease goes to the various health services, and the profile of spending for each disease and health service according to sex and age is a first step in achieving awareness of the costs of specific diseases, who bears the medical care expenditure burden, and potential savings attainable through effective, targeted interventions.

Although there are many studies of expenditures for specific diseases, these frequently employ diverse data and methods so that alternative estimates for the same disease are not consistent, and the relative amounts spent for different diseases are distorted. Only by employing consistent methodology and data across all diseases can it be ensured that expenditures for various diseases can be compared and the sum of expenditures for all diseases totals to HCFA's PHCE. The initial pioneering analysis that distributed total PHCE by medical diagnosis and type of health care service was by Dorothy Rice (1966) for 1963. This paved the way for later analyses of medical expenditures that disaggregated PHCE into broad categories of disease according to the ICD-9-CM list of three-digit categories (Public Health Service and Health Care Financing Administration, 1980) in 1972 (Cooper and Rice, 1976) and fiscal 1975 (Berk, Paringer, and Mushkin, 1978). The last comprehensive analysis of how total PHCE are distributed by sex, age, medical diagnosis, and type of health care service examined PHCE in 1980 (Hodgson and Kopstein, 1984; Rice, Hodgson, and Kopstein, 1985).

In this article, we continue this trend, updating expenditures to 1995 by disaggregating HCFA's PHCE, using a variety of data sources to produce expenditures by sex, age, and medical diagnosis for each type of health care service. Although the format of disaggregating PHCE by diagnosis has remained basically unchanged since initiated by Rice, estimates for each year have benefitted from data newly available since the prior calculations. Expenditures for 1995 have profited, for example, from new surveys on hospital ambulatory care (National Hospital Ambulatory Care Survey) and home health care (National Home and Hospice Care Survey) and on medical care expenditures (National Medical Expenditure Survey), which provide data not heretofore available. Also, our estimates for 1995 are the first to examine the age distribution of expenditures among persons age 65 or over, who represent less than 15 percent of the population (Byerly and Deardorff, 1995) but account for more than 40 percent of PHCE.

Data

HCFA publishes annual estimates of PHCE by health service type (Levit et al., 1997), including expenditures for hospital care, physician services, dental services, other professional services, home health care, drugs and other medical non-durables, vision products and other medical durables, nursing home care, and other personal health care (PHC). In addition to the published annual estimates for the various types of PHC, HCFA can disaggregate the totals for several types into their components; for example, hospital care by type of hospital, physician services by place of service, etc. (Levit et al., 1994). We used data on utilization and charges for each health service type to distribute PHCE for each health service according to sex, age, and diagnosis.

A variety of data were used in the analysis. In addition to PHCE, HCFA data include Medicare Provider Analysis and Review and physician/supplier Part B files of Medicare claims for services (Mitchell et al., 1994).

Data from the National Center for Health Statistics include the National Hospital Discharge Survey of inpatient stays in short-stay, non-Federal hospitals; National Health Interview Survey of the health of the U.S. civilian non-institutionalized population; National Ambulatory Medical Care Survey (NAMCS) of physician-patient encounters in the offices of office-based, patient care physicians; National Hospital Ambulatory Medical Care Survey (NHAMCS) of visits by patients to emergency and outpatient departments of non-Federal, short-stay, or general hospitals; National Home and Hospice Care Survey of home health agencies and hospices; and National Nursing Home Survey (NNHS) of nursing home residents and discharges (National Center for Health Statistics, 1997).

Data from the Agency for Healthcare Research and Quality consist of the National Medical Expenditure Survey (NMES) of households of the civilian, non-institutionalized population and medical providers reported as providing services to persons in the household component (Edwards and Berlin, 1989).

The Department of Veterans Affairs (VA) administrative data systems provide information on patient treatment at VA and non-VA facilities (National Center for Health Statistics, 1997; National Center for Veteran Analysis and Statistics, 1994). Finally, data from IMS America include information from the National Disease and Therapeutic Index on diagnosis and treatment of disease by office-based physicians in the continental United States and National Prescription Audit Plus, which tracks prescriptions written by physicians and dispensed by pharmacists in retail pharmacies, including costs to consumers (IMS America, 1994).

Each data source, including specific statistics used in our analysis, is described in Table 1. Although most data are from 1992-1995, the NNHS and NMES are from 1985 and 1987, respectively. Nevertheless, these were the best sources for nursing home expenditures and average charges for many health services that were available at the time this analysis was undertaken. Results are not affected by changes since 1985 and 1987 in absolute levels of utilization or charges because all estimates of expenditures are scaled to HCFA's PHCE, as explained in the following section. However, changes in relative utilization or average charge per service among diagnoses could affect estimated expenditures for certain diagnoses.

Table 1. Data Sources and Statistics.

Source Description Statistics1
Health Care Financing Administration
Personal Health Care Expenditures, 1995 Total national expenditures for personal health care for each health service type. Expenditures for hospital care: inpatient, outpatient (OP), emergency (ER) departments, facility home health care, Department of Veterans Affairs. Physician services: offices, hospital inpatients, OP and ER departments, nursing homes, laboratory, and X-ray. Other professional services: chiropractors, podiatrists, Medicare ambulance services. Home health care. Prescription drugs. Medical durables. Nursing home care.2
Medicare Provider Analysis and Review File, 1992 Claims data for Part A services used by Medicare beneficiaries. A 20-percent sample contains 2 million discharges. Number of inpatient hospital days (persons 65 or over).
Physician/Supplier Part B File, 1992 Claims data for Part B services used by Medicare beneficiaries. A 5-percent sample contains about 26 million claims. Number of physician visits to hospital inpatients (persons 65 or over). Average charge per physician visit for hospital inpatients, nursing home residents, laboratory and X-ray services during a visit, Medicare ambulance services (persons 65 or over).
National Center for Health Statistics
National Hospital Discharge Survey, 1993 Nationwide probability sample of inpatient records for 235,000 discharges in short-stay, non-Federal hospitals. Number of inpatient hospital days.
National Health Interview Survey, 1993 Nationwide probability sample of about 127,000 persons in the civilian non-institutionalized U.S. population. Number of visits to physician offices, hospital OP departments, and dentists (by sex and age only).
National Ambulatory Medical Care Survey, 1992 Nationwide probability sample of almost 35,000 physician patient encounters with office-based, patient care physicians.3 Number of visits to physician offices and number of visits with 1 or more diagnostic/screening services.
National Hospital Ambulatory Medical Care Survey, 1992 Nationwide probability sample of patient records of more than 71,000 visits to ER and OP departments in short-stay, non-Federal hospitals.4 Number of visits to ER departments.
National Home and Hospice Care Survey, 1992 Nationwide probability sample of data from almost 14,000 patient records in home and hospice care agencies. Number of home health care patients. Average charge per month.
National Nursing Home Survey, 1985 Nationwide probability sample of data from more than 11,000 patient records in nursing homes.6 Number of nursing home residents. Average charge per month.
Agency for Healthcare Research and Quality
National Medical Expenditure Survey, 1987 Nationwide probability sample survey of about 35,000 persons in the civilian non-institutionalized U.S. population during in-home interviews, and a survey of medical providers reported giving services to persons in the household survey. Number of visits to hospital OPs, chiropractors, podiatrists, and optometrists. Average facility charge per hospital inpatient day, OP, and ER visit. Average physician charge per office, OP, and ER visit. Average charge per chiropractor, podiatrist, and optometrist visit. Expenditures for other medical expenses excluding expenses for eyeglasses, contact lenses, and hearing aids.
Census Bureau
Census Analysis System, 1990 Data from the Census of Population. Number of persons in nursing homes and mental (psychiatric) hospitals (by sex and age only).
Veterans Administration
Data, 1994 Unpublished data from Department of Veterans Affairs, Biometrics Division. Number of inpatient hospital days.
IMS America
National Disease and Therapeutic Index A stratified random sample of 2,940 office-based physicians who report on treatment of each patient during a2 day period. Number of physician visits to hospital inpatients and nursing home residents.
National Prescription Audit Plus Tracks prescriptions dispensed by more than 20,000 randomly selected retail pharmacies from a database including more than one-half of all retail pharmacies in the continental United States. Consumer expenditures for prescription drugs.
1

All statistics are by sex, age, and diagnosis unless otherwise noted. Only statistics used in this analysis are listed.

2

Total expenditures only for each health service type.

3

Visits to hospital-based physicians, specialists in anesthesiology, pathology, radiology, and physicians principally engaged in teaching, research, or administration are excluded. Telephone contacts and non- office visits are also excluded.

4

Telephone contacts are excluded.

5

National Nursing Home Survey data for 1995 were not available at the time of this analysis.

6

Homes providing only personal or domiciliary care are excluded.

SOURCE: Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

Methods

Sex-, age-, and diagnosis-specific expenditures for each health service are calculated by distributing HCFA's total PHCE for the service by the sex, age, and diagnosis distribution of the annual number of services, weighted by the respective average charge per service described in Table 1. Utilization and charges for a health service are defined according to the first-listed or primary diagnosis reported on medical records. This is the condition chiefly responsible for occasioning the use of the health service. Algebraic description of the disaggregation of PHCE for each type of health service is:

(PHCEH)S,A,D={[(UH)S,A,D(CH)S,A,D]/S,A,D[(UH)S,A,D(CH)S,A,D]}PHCEH

where:

(UH)S,A,D = annual utilization of services for health service type = H, sex = S, age = A, diagnosis = D
(CH)S,A,D = average charge per service for health service type = H, sex = S, age = A, diagnosis = D
PHCEH = HCFA's total expenditure for health service type = H

Estimated expenditures by diagnosis are scaled to HCFA's NHE for each health service type. Scaling ensures that if expenditures are estimated for all diagnoses with the same data and methods used in this article, the sums over diagnoses would correspond exactly to HCFA's totals for PHCE, less unallocated expenditures described later. Each health service type and the specific data used to distribute total expenditures for the service by sex, age, and diagnosis are listed in Table 2.

Table 2. Methodology for Allocating Expenditures.

(PHCEH)S,A,D
Estimated Expenditures for Health Service Type H by Sex, Age, and Diagnosis
(UH)S,A,D
Utilization of Services for Health Service Type H by Sex, Age, and Diagnosis
(CH)S,A,D
Charges for Health Service Type H by Sex, Age, and Diagnosis
Hospital Expenditures
Inpatients NHDS inpatient days. NMES average charge per day.
Outpatients (OP and ER) NMES OP visits adjusted by NHIS OP visits to reflect changes in age, sex distribution of visits since NMES; NHAMCS ER visits. NMES average facility charge per OP and ER visit.
Hospital-Based Home Health Care NHHCS patients receiving home health care. NHHCS average charge.
Department of Veterans Affairs (VA) Inpatients VA inpatient days. No VA charge per day; assume same charge for all diagnoses.
Non-Federal Non-Community Psychiatric Hospitals1 Census Bureau patients in mental (psychiatric) hospitals. Not applicable.
Physician Expenditures2
Office Visits NAMCS office visits adjusted by NHIS office visits to account for NAMCS under reporting.3 NMES average charge per visit.
Hospital Inpatients NDTI physician visits to hospital inpatients. HCFA physician/supplier Part B file average charge per visit for 65 or over; Part B average charges adjusted by ratios of Medicare to private payer fees for those under 65 years.4
Hospital Outpatients (OP and ER) NMES OP visits adjusted by NHIS OP visits to reflect changes in age and sex distribution of visits since NMES; NHAMCS ER visits. NMES average physician charge per OP and ER visit.
Nursing Home Residents NDTI physician visits to nursing home residents. HCFA physician/supplier Part B file average charge per visit for 65 or over; Part B average charges adjusted by ratios of Medicare to private payer fees for those under 65 years.4
Laboratory and X-ray Services NAMCS office visits with 1 or more diagnostic/screening services. HCFA physician/supplier Part B file average charge per visit for 65 or over; Part B average charges adjusted by ratios of Medicare to private payer fees for those under 65 years.4
Other Professional Services Expenditures
Chiropractors, Podiatrists, Optometrists NMES visits to each provider. NMES average charge per visit.
Dentists5 NHIS visits. Not applicable.
Medicare Ambulance Services Not applicable. HCFA physician/supplier Part B file charges.
Dialysis Centers6 Not applicable. Allowed charges from HCFA physician/supplier Part B file.
Home Health Expenditures7
Freestanding Home Health Facilities NHHCS patients receiving home health care. NHHCS average charge.
Medical Durables Expenditures8 Not applicable. NMES expenditures.
Prescription Drug Expenditures Not applicable. Consumer expenditures derived from NDTI and NPA.
Nursing Home Expenditures NNHS residents adjusted by increase by sex and age 1985-1990. NNHS average charge.
1

All expenditures are attributed to mental disorders. To the extent some expenditures are for other conditions incurred during stays in these hospitals, mental health expenditures may be overstated. Nevertheless, the primary reason for being in a psychiatric hospital is for treatment of mental illness. The amount of overstatement, if any, is unknown.

2

For physicians who bill separately.

3

Certain types of physicians are out of scope for the NAMCS survey (Schappert, 1997; Gardocki, McLemore, and DeLozier, 1984).

4

Adjustment ratios derived from analysis of Medicare and private payer physician fees (Miller, Zuckerman, and Gates, 1993).

5

All expenditures are attributed to diseases of the digestive system.

6

All expenditures are attributed to diseases of the genitourinary system.

7

Expenditures for home health care provided by hospitals are included in hospital expenditures.

8

All expenditures for vision products and hearing aids are attributed to diseases of the nervous system and sense organs.

NOTES: NHDS is National Hospital Discharge Survey. OP is outpatient, ER is emergency. NMES is National Medical Expenditure Survey. NHIS is National Health Interview Survey. NHAMCS is National Hospital Ambulatory Medical Care Survey. NHHCS is National Home and Hospice Care Survey. NAMCS is National Ambulatory Medical Care Survey. NDTI is National Disease and Therapeutic Index. HCFA is Health Care Financing Administration. NPA is National Prescription Audit Plus. NNHS is National Nursing Home Survey.

SOURCE: Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

An advance over prior disaggregations of PHCE by diagnosis is our employment of the most detailed breakdown of health care services that data allow. This provides more accurate distributions of expenditures by taking into account the variation in utilization and charges by diagnosis among components of a health care service. For example, the relative importance of hospital inpatient and outpatient care varies by diagnosis. Accounting for this variation rather than treating all forms of hospital expenditures alike avoids distortion of the distribution of hospital expenditures by diagnosis. Following HCFA's convention for publishing PHCE, we only report expenditures for the major categories of health care services: hospital care, physician and other professional services, home health care, prescription drugs, medical durables, and nursing home care. Expenditures for each of the broader categories of health services presented in the tables, for example, hospital, physician, and other professional services, are the sum of their separately estimated components in Table 2.

Unallocated Expenditures

Lack of information on how utilization is related to sex, age, and diagnosis prohibited allocating expenditures for some services (Table 3). With available data, it was possible to allocate 87 percent of total PHCE according to type of health service, sex, age, and medical diagnosis. The proportion of allocated expenditures varies according to type of health service. For example, 100 percent of expenditures for nursing homes, home health care, and medical durables, 99 percent of expenditures for hospital care, and 94 percent of expenditures for physician services are allocated, compared with only 65 percent for drugs and medical non-durables, 60 percent for other professional services, and no expenditures for other personal health care.

Table 3. HCFA Estimated and Allocated Amounts for Personal Health Care Expenditures, by Health Service Type: 1995.

Item Total Personal Health Care Hospital Care Physician Services Other Professional Services Home Health Care Drugs and Medical Non-Durables Medical Durables Nursing Home Care Other Personal Health Care
Amount in Billions
HCFA Estimate $869.0 $346.7 $196.4 $99.0 $28.4 $84.9 $13.1 $75.2 $25.3
Allocated Amount 757.8 342.7 183.8 59.2 28.4 55.4 13.1 75.2 0.0
Unallocated Amount 111.2 4.0 12.6 39.8 0.0 29.5 0.0 0.0 25.3
Percent Distribution
HCFA Estimate 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Allocated Amount 87.2 98.8 93.6 59.8 100.0 65.3 100.0 100.0 0.0
Unallocated Amount 12.8 1.2 6.4 40.2 0.0 34.7 0.0 0.0 100.0

NOTES: HCFA is Health Care Financing Administration.

SOURCES: (Levit et al., 1997) and estimates derived from Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

Suitable data were not available to distribute:

  • 1 percent of hospital expenditures for care in non-Federal non-community hospitals that are not psychiatric hospitals and certain Federal hospitals, including spending by the National Institutes of Health, Department of Justice, Coast Guard, and spending for Hanson's disease.

  • 6 percent of expenditures for physician services that were merchandise sales by physicians, including prescription and non-prescription drugs, optical goods, and orthopedic appliances;

  • 40 percent of expenditures for other professional services of licensed professionals, such as physical therapists, visiting nurses, and psychologists, and professional services in blood banks and specialty outpatient clinics other than hospital outpatient departments;

  • 35 percent of expenditures for drugs and medical non-durables that were non-prescription and over-the-counter drugs and medical sundries (all expenditures for prescription drugs were allocated); and

  • All expenditures for other personal health care, which includes industrial inplant health care provided by employers at the work site, and a variety of public programs such as school health. Nevertheless, 97 percent of combined spending for the basic and widely used services of hospitals, physicians, dentists, home health agencies, prescription drugs, and nursing homes could be allocated and is included in the following results.

Results

We have estimated aggregate and per capita PHCE by sex, age, diagnosis, and health service type. With so much detail, there are various relationships to examine and ways to summarize information. We present some highlights in several tables and figures but leave it to the interested reader to explore additional dimensions in Tables 8 and 9, which give detailed cross tabulations for aggregate and per capita expenditures. With existing data, we were able to distribute 87 percent of PHCE by sex, age, diagnosis, and health service type. All discussion refers to allocated expenditures.

Table 8. Allocated Personal Health Care Expenditures Aggregate Amounts, by Type of Health Service, Sex, Age, Diagnosis, and ICD-9-CM Code: 1995.

Sex, Age, Diagnosis, and ICD-9-CM Code Total Hospital Care Physician and Other Professional Services1 Home Health Care Prescription Drugs Medical Durables Nursing Home Care

Amount in Millions2
Both Sexes, All Ages
All Conditions $757,830 $342,744 $243,032 $28,400 $55,354 $13,100 $75,200
Infectious and Parasitic Diseases 001-139 17,040 8,966 5,253 605 1,890 45 281
Neoplasms 140-239 41,184 26,732 9,479 2,049 954 215 1,756
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 32,655 13,928 6,970 2,574 4,442 577 4,164
Diseases of the Blood and Blood-Forming Organs 280-289 4,704 2,512 992 473 163 25 538
Mental Disorders 290-319 71,348 41,064 7,651 631 6,071 20 15,910
Diseases of the Nervous System and Sense Organs 320-389 63,338 12,600 27,537 2,123 3,424 9,089 8,566
Diseases of the Circulatory System 390-459 127,799 64,303 18,766 7,146 11,749 570 25,266
Diseases of the Respiratory System 460-519 59,305 29,523 17,075 1,656 7,656 569 2,826
Diseases of the Digestive System 520-579 86,690 27,287 51,728 946 4,881 110 1,739
Diseases of the Genitourinary System 580-629 36,108 16,913 14,175 685 2,800 67 1,469
Complications of Pregnancy, Childbirth, and the Puerperium 630-676 3,413 2,017 1,311 11 56 18 0
Diseases of the Skin and Subcutaneous Tissue 680-709 18,291 6,098 7,598 1,665 2,338 25 566
Diseases of the Musculoskeletal System and Connective Tissue 710-739 48,526 19,511 16,792 2,674 4,083 489 4,977
Congenital Anomalies 740-759 4,864 2,595 1,292 611 22 19 326
Certain Conditions Originating in the Perinatal Period 760-779 3,214 2,411 491 274 3 25 10
Symptoms, Signs, and Ill-Defined Conditions 780-799 22,670 7,307 8,959 1,233 1,944 250 2,976
Injury and Poisoning 800-999 68,961 38,458 23,278 2,328 1,037 935 2,925
Supplementary Classifications V01-V82 47,721 20,519 23,685 716 1,843 53 905
Male, All Ages
All Conditions $335,250 $170,965 $105,515 $9,782 $22,857 $5,506 $20,624
Infectious and Parasitic Diseases 001-139 8,326 4,762 2,294 277 918 8 67
Neoplasms 140-239 19,112 12,625 4,396 939 387 95 671
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 14,057 6,815 3,371 828 1,701 253 1,089
Diseases of the Blood and Blood-Forming Organs 280-289 1,847 1,137 401 69 98 12 131
Mental Disorders 290-319 35,413 25,017 3,452 154 2,340 3 4,447
Diseases of the Nervous System and Sense Organs 320-389 27,612 6,682 11,458 1,031 1,368 3,925 3,147
Diseases of the Circulatory System 390-459 61,296 37,952 9,835 1,894 5,616 245 5,755
Diseases of the Respiratory System 460-519 27,621 14,719 7,337 803 3,327 264 1,170
Diseases of the Digestive System 520-579 38,891 12,611 23,287 356 2,115 42 479
Diseases of the Genitourinary System 580-629 12,712 6,372 4,831 234 645 37 594
Diseases of the Skin and Subcutaneous Tissue 680-709 8,624 3,309 3,298 759 1,041 13 203
Diseases of the Musculoskeletal System and Connective Tissue 710-739 17,916 8,070 6,805 665 1,377 83 916
Congenital Anomalies 740-759 2,265 1,319 530 283 13 6 113
Certain Conditions Originating in the Perinatal Period 760-779 1,595 1,273 260 48 2 13 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 9,528 3,854 3,597 434 692 136 815
Injury and Poisoning 800-999 34,976 19,971 12,820 739 479 363 604
Supplementary Classifications V01-V82 13,459 4,477 7,543 268 739 10 422
Male, Under 65 Years
All Conditions $209,410 $102,556 $79,879 $3,515 $15,855 $3,741 $3,864
Infectious and Parasitic Diseases 001-139 6,227 3,129 2,062 219 806 1 9
Neoplasms 140-239 7,707 5,570 1,814 112 137 27 47
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 8,572 4,384 2,588 172 1,110 131 186
Diseases of the Blood and Blood-Forming Organs 280-289 983 639 265 15 53 12 0
Mental Disorders 290-319 27,233 20,555 3,051 92 2,104 3 1,429
Diseases of the Nervous System and Sense Organs 320-389 16,542 3,800 7,263 703 1,015 2,942 818
Diseases of the Circulatory System 390-459 23,573 15,167 4,864 259 2,731 70 482
Diseases of the Respiratory System 460-519 16,131 7,044 5,966 392 2,631 64 34
Diseases of the Digestive System 520-579 29,554 7,863 19,974 117 1,486 30 85
Diseases of the Genitourinary System 580-629 6,869 3,460 2,826 44 381 14 144
Diseases of the Skin and Subcutaneous Tissue 680-709 5,903 2,098 2,574 309 907 11 4
Diseases of the Musculoskeletal System and Connective Tissue 710-739 12,376 5,647 5,402 259 1,003 40 25
Congenital Anomalies 740-759 2,173 1,298 479 283 10 5 98
Certain Conditions Originating in the Perinatal Period 760-779 1,595 1,273 260 48 2 13 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 6,247 3,026 2,362 104 498 73 184
Injury and Poisoning 800-999 28,957 15,756 12,052 233 436 302 178
Supplementary Classifications V01-V82 8,768 1,847 6,076 154 546 5 141
Male, 65 Years or Over
All Conditions $125,839 $68,409 $25,636 $6,267 $7,002 $1,764 $16,761
Infectious and Parasitic Diseases 001-139 2,099 1,633 232 58 113 7 58
Neoplasms 140-239 11,405 7,055 2,582 827 250 68 624
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 5,485 2,431 783 656 590 122 903
Diseases of the Blood and Blood-Forming Organs 280-289 864 498 135 54 45 0 131
Mental Disorders 290-319 8,180 4,462 401 62 236 0 3,018
Diseases of the Nervous System and Sense Organs 320-389 11,070 2,882 4,195 328 353 983 2,330
Diseases of the Circulatory System 390-459 37,724 22,785 4,971 1,635 2,885 175 5,273
Diseases of the Respiratory System 460-519 11,490 7,675 1,371 411 696 200 1,137
Diseases of the Digestive System 520-579 9,337 4,748 3,313 240 629 13 394
Diseases of the Genitourinary System 580-629 5,843 2,912 2,006 190 264 23 450
Diseases of the Skin and Subcutaneous Tissue 680-709 2,721 1,212 724 450 134 2 199
Diseases of the Musculoskeletal System and Connective Tissue 710-739 5,540 2,422 1,402 407 374 43 891
Congenital Anomalies 740-759 91 21 51 0 3 1 16
Symptoms, Signs, and Ill-Defined Conditions 780-799 3,281 828 1,235 330 194 63 631
Injury and Poisoning 800-999 6,018 4,215 768 506 43 60 425
Supplementary Classifications V01-V82 4,691 2,630 1,467 115 193 5 282
Male, 65-74 Years
All Conditions $55,462 $31,548 $12,450 $2,226 $4,488 $1,001 $3,749
Infectious and Parasitic Diseases 001-139 835 617 113 9 81 7 9
Neoplasms 140-239 5,650 3,692 1,411 300 136 30 80
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 2,541 1,260 418 217 446 89 110
Diseases of the Blood and Blood-Forming Organs 280-289 302 218 40 7 24 0 14
Mental Disorders 290-319 2,766 1,500 208 35 176 0 848
Diseases of the Nervous System and Sense Organs 320-389 4,913 1,305 2,071 109 180 575 674
Diseases of the Circulatory System 390-459 17,077 11,098 2,629 509 1,799 102 940
Diseases of the Respiratory System 460-519 4,924 3,144 741 122 440 111 367
Diseases of the Digestive System 520-579 3,520 2,193 659 115 460 8 86
Diseases of the Genitourinary System 580-629 2,630 1,211 1,064 82 168 13 91
Diseases of the Skin and Subcutaneous Tissue 680-709 1,352 575 394 205 84 2 91
Diseases of the Musculoskeletal System and Connective Tissue 710-739 2,657 1,345 801 96 246 17 151
Congenital Anomalies 740-759 68 18 43 0 0 1 6
Symptoms, Signs, and Ill-Defined Conditions 780-799 1,389 363 549 121 119 7 230
Injury and Poisoning 800-999 2,488 1,767 439 212 25 35 11
Supplementary Classifications V01-V82 2,350 1,243 871 86 105 4 42
Male, 75-84 Years
All Conditions $44,512 $23,281 $8,629 $2,852 $2,014 $629 $7,108
Infectious and Parasitic Diseases 001-139 777 599 81 29 19 0 48
Neoplasms 140-239 4,177 2,335 977 343 94 34 393
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 1,909 716 249 320 107 24 493
Diseases of the Blood and Blood-Forming Organs 280-289 317 145 81 20 21 0 50
Mental Disorders 290-319 2,316 983 112 19 47 0 1,155
Diseases of the Nervous System and Sense Organs 320-389 4,306 956 1,724 183 132 338 974
Diseases of the Circulatory System 390-459 14,096 8,396 1,849 776 840 64 2,172
Diseases of the Respiratory System 460-519 4,173 2,771 434 213 226 66 464
Diseases of the Digestive System 520-579 2,449 1,648 383 101 137 4 177
Diseases of the Genitourinary System 580-629 2,215 1,095 766 59 91 6 197
Diseases of the Skin and Subcutaneous Tissue 680-709 797 368 245 125 35 0 24
Diseases of the Musculoskeletal System and Connective Tissue 710-739 2,065 784 507 253 116 25 381
Congenital Anomalies 740-759 10 0 7 0 3 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 1,213 233 526 146 62 47 200
Injury and Poisoning 800-999 2,282 1,497 239 240 14 21 271
Supplementary Classifications V01-V82 1,411 756 449 27 69 0 110
Male, 85 Years or Over
All Conditions $17,897 $8,067 $2,103 $1,190 $500 $134 $5,903
Infectious and Parasitic Diseases 001-139 406 341 34 19 13 0 0
Neoplasms 140-239 1,021 491 172 184 20 3 150
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 858 301 94 118 37 8 300
Diseases of the Blood and Blood-Forming Organs 280-289 215 108 13 27 0 0 67
Mental Disorders 290-319 1,357 277 43 8 14 0 1,015
Diseases of the Nervous System and Sense Organs 320-389 1,438 241 367 37 42 69 682
Diseases of the Circulatory System 390-459 5,658 2,457 434 350 246 9 2,161
Diseases of the Respiratory System 460-519 1,862 1,254 172 76 30 24 306
Diseases of the Digestive System 520-579 951 657 106 24 32 1 131
Diseases of the Genitourinary System 580-629 805 434 153 48 4 3 162
Diseases of the Skin and Subcutaneous Tissue 680-709 449 159 72 120 14 0 84
Diseases of the Musculoskeletal System and Connective Tissue 710-739 688 167 91 58 12 1 359
Congenital Anomalies 740-759 11 0 1 0 0 0 10
Symptoms, Signs, and Ill-Defined Conditions 780-799 495 76 133 63 13 10 201
Injury and Poisoning 800-999 1,062 772 83 54 5 5 143
Supplementary Classifications V01-V82 620 332 136 3 19 1 130
Female, All Ages
All Conditions $422,580 $171,779 $137,517 $18,618 $32,497 $7,594 $54,576
Infectious and Parasitic Diseases 001-139 8,714 4,204 2,959 328 971 37 214
Neoplasms 140-239 22,071 14,107 5,083 1,110 567 120 1,085
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 18,599 7,113 3,599 1,747 2,741 324 3,075
Diseases of the Blood and Blood-Forming Organs 280-289 2,857 1,375 591 404 66 13 407
Mental Disorders 290-319 35,934 16,047 4,199 477 3,731 17 11,463
Diseases of the Nervous System and Sense Organs 320-389 35,726 5,918 16,079 1,091 2,055 5,164 5,419
Diseases of the Circulatory System 390-459 66,503 26,351 8,932 5,252 6,133 325 19,511
Diseases of the Respiratory System 460-519 31,684 14,804 9,738 853 4,328 305 1,656
Diseases of the Digestive System 520-579 47,799 14,676 28,440 589 2,766 67 1,260
Diseases of the Genitourinary System 580-629 23,396 10,541 9,344 452 2,155 30 874
Complications of Pregnancy, Childbirth, and the Puerperium 630-676 3,413 2,017 1,311 11 56 18 0
Diseases of the Skin and Subcutaneous Tissue 680-709 9,667 2,789 4,301 906 1,297 12 363
Diseases of the Musculoskeletal System and Connective Tissue 710-739 30,610 11,441 9,987 2,009 2,706 406 4,061
Congenital Anomalies 740-759 2,600 1,275 761 328 9 13 213
Certain Conditions Originating in the Perinatal Period 760-779 1,618 1,139 230 226 1 12 10
Symptoms, Signs, and Ill-Defined Conditions 780-799 13,142 3,453 5,363 799 1,252 114 2,161
Injury and Poisoning 800-999 33,986 18,487 10,458 1,589 558 573 2,321
Supplementary Classifications V01-V82 34,261 16,042 16,142 448 1,104 44 482
Female, Under 65 Years
All Conditions $236,545 $97,522 $104,206 $4,421 $21,880 $5,119 $3,398
Infectious and Parasitic Diseases 001-139 6,147 2,541 2,525 242 793 34 12
Neoplasms 140-239 11,505 7,594 3,135 404 229 80 63
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 8,008 3,426 2,163 481 1,539 196 204
Diseases of the Blood and Blood-Forming Organs 280-289 1,258 824 363 26 45 1 0
Mental Disorders 290-319 19,695 11,847 3,225 115 3,284 13 1,209
Diseases of the Nervous System and Sense Organs 320-389 19,785 3,221 9,973 549 1,496 3,808 738
Diseases of the Circulatory System 390-459 13,896 6,597 3,867 494 2,308 88 542
Diseases of the Respiratory System 460-519 18,930 7,057 8,043 187 3,437 123 83
Diseases of the Digestive System 520-579 33,292 7,432 23,889 106 1,812 20 34
Diseases of the Genitourinary System 580-629 17,411 7,926 7,408 275 1,777 12 13
Complications of Pregnancy, Childbirth, and the Puerperium 630-676 3,413 2,017 1,311 11 56 18 0
Diseases of the Skin and Subcutaneous Tissue 680-709 6,113 1,434 3,293 244 1,109 8 24
Diseases of the Musculoskeletal System and Connective Tissue 710-739 15,295 5,854 7,230 227 1,755 194 35
Congenital Anomalies 740-759 2,460 1,268 694 309 9 13 167
Certain Conditions Originating in the Perinatal Period 760-779 1,618 1,139 230 226 1 12 10
Symptoms, Signs, and Ill-Defined Conditions 780-799 7,607 2,665 3,703 92 960 51 136
Injury and Poisoning 800-999 20,090 10,189 8,635 250 468 419 129
Supplementary Classifications V01-V82 30,023 14,490 14,517 183 802 30 0
Female, 65 Years or Over
All Conditions $186,025 $74,246 $33,311 $14,197 $10,618 $2,476 $51,178
Infectious and Parasitic Diseases 001-139 2,567 1,663 434 87 178 3 202
Neoplasms 140-239 10,559 6,506 1,948 705 338 41 1,022
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 10,587 3,685 1,436 1,265 1,202 129 2,871
Diseases of the Blood and Blood-Forming Organs 280-289 1,598 550 229 378 21 13 407
Mental Disorders 290-319 16,240 4,199 974 362 447 4 10,254
Diseases of the Nervous System and Sense Organs 320-389 15,941 2,696 6,106 542 560 1,356 4,681
Diseases of the Circulatory System 390-459 52,607 19,755 5,064 4,758 3,825 237 18,969
Diseases of the Respiratory System 460-519 12,754 7,747 1,694 666 892 183 1,573
Diseases of the Digestive System 520-579 14,507 7,244 4,552 483 955 47 1,226
Diseases of the Genitourinary System 580-629 5,985 2,615 1,936 176 378 18 862
Diseases of the Skin and Subcutaneous Tissue 680-709 3,555 1,354 1,007 662 188 3 339
Diseases of the Musculoskeletal System and Connective Tissue 710-739 15,314 5,587 2,757 1,782 951 212 4,025
Congenital Anomalies 740-759 140 7 67 19 0 0 46
Symptoms, Signs, and Ill-Defined Conditions 780-799 5,536 788 1,659 707 292 64 2,025
Injury and Poisoning 800-999 13,896 8,298 1,823 1,339 90 153 2,193
Supplementary Classifications V01-V82 4,238 1,551 1,625 265 302 14 482
Female, 65-74 Years
All Conditions $60,739 $28,781 $14,327 $3,868 $6,076 $1,217 $6,471
Infectious and Parasitic Diseases 001-139 833 529 204 15 75 1 9
Neoplasms 140-239 5,080 3,337 990 331 217 17 189
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 4,189 1,523 674 478 874 84 557
Diseases of the Blood and Blood-Forming Organs 280-289 452 237 99 84 10 5 17
Mental Disorders 290-319 4,220 1,893 412 143 281 4 1,487
Diseases of the Nervous System and Sense Organs 320-389 6,197 1,051 3,048 186 257 708 946
Diseases of the Circulatory System 390-459 14,145 7,161 2,122 989 1,980 86 1,807
Diseases of the Respiratory System 460-519 4,922 2,826 851 204 530 94 417
Diseases of the Digestive System 520-579 4,414 2,768 821 162 544 11 107
Diseases of the Genitourinary System 580-629 2,339 848 1,066 30 255 1 139
Diseases of the Skin and Subcutaneous Tissue 680-709 1,319 444 511 205 117 1 40
Diseases of the Musculoskeletal System and Connective Tissue 710-739 5,465 2,626 1,393 403 572 103 368
Congenital Anomalies 740-759 81 4 25 14 0 0 37
Symptoms, Signs, and Ill-Defined Conditions 780-799 1,507 346 626 156 147 28 205
Injury and Poisoning 800-999 3,916 2,595 711 394 36 66 114
Supplementary Classifications V01-V82 1,659 592 772 73 181 10 31
Female, 75-84 Years
All Conditions $71,002 $29,710 $11,487 $6,186 $3,515 $927 $19,175
Infectious and Parasitic Diseases 001-139 1,190 705 157 71 90 1 167
Neoplasms 140-239 4,105 2,492 788 316 102 14 393
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 3,995 1,321 490 549 255 32 1,348
Diseases of the Blood and Blood-Forming Organs 280-289 567 218 58 138 9 3 141
Mental Disorders 290-319 6,470 1,608 344 115 119 0 4,285
Diseases of the Nervous System and Sense Organs 320-389 6,829 1,347 2,349 260 224 499 2,151
Diseases of the Circulatory System 390-459 20,278 8,205 1,897 2,184 1,415 104 6,473
Diseases of the Respiratory System 460-519 4,986 2,984 560 340 270 79 753
Diseases of the Digestive System 520-579 4,430 2,893 592 230 309 36 370
Diseases of the Genitourinary System 580-629 2,171 1,089 677 58 95 13 239
Diseases of the Skin and Subcutaneous Tissue 680-709 1,245 497 362 250 49 1 87
Diseases of the Musculoskeletal System and Connective Tissue 710-739 5,576 2,091 1,095 742 322 82 1,244
Congenital Anomalies 740-759 41 3 36 2 0 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 2,207 288 720 303 118 17 761
Injury and Poisoning 800-999 5,218 3,322 723 532 46 43 552
Supplementary Classifications V01-V82 1,693 648 639 97 93 4 212
Female, 85 Years or Over
All Conditions $50,590 $15,647 $3,909 $4,143 $1,027 $332 $25,532
Infectious and Parasitic Diseases 001-139 532 428 63 0 13 2 26
Neoplasms 140-239 1,349 676 146 58 19 10 440
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 2,345 841 213 239 73 12 966
Diseases of the Blood and Blood-Forming Organs 280-289 566 96 59 155 2 4 250
Mental Disorders 290-319 5,384 654 95 104 47 0 4,482
Diseases of the Nervous System and Sense Organs 320-389 2,837 287 641 97 79 149 1,584
Diseases of the Circulatory System 390-459 18,020 4,375 894 1,585 430 46 10,689
Diseases of the Respiratory System 460-519 2,787 1,931 231 121 91 10 403
Diseases of the Digestive System 520-579 2,775 1,577 255 91 102 0 749
Diseases of the Genitourinary System 580-629 1,442 674 164 88 28 4 483
Diseases of the Skin and Subcutaneous Tissue 680-709 956 411 101 208 22 2 212
Diseases of the Musculoskeletal System and Connective Tissue 710-739 4,232 865 231 637 58 27 2,413
Congenital Anomalies 740-759 19 1 5 3 0 0 9
Symptoms, Signs, and Ill-Defined Conditions 780-799 1,766 150 262 248 28 19 1,060
Injury and Poisoning 800-999 4,724 2,376 357 413 7 45 1,526
Supplementary Classifications V01-V82 857 305 191 95 27 0 240
1

All expenditures for dental services are allocated to diseases of the digestive system.

2

Excludes expenditures for Department of Veterans Affairs hospitals, physician services in nursing homes, and dental services that cannot be distributed by age at ages 65 or over.

NOTES: The figure 0 denotes amounts less than $500,000. Expenditures for hospice services may be included with expenditures for hospital, nursing home, or home health care, according to who provided the services. Numbers may not add to totals shown because of rounding. ICD-9-CM is International Classification of Diseases, 9th Revision, Clinical Modification.

SOURCE: (Public Health Service and Health Care Financing Administration, 1980.) Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

Table 9. Allocated Personal Health Care Expenditures per Capita Amounts, by Type of Health Service, Sex, Age, Diagnosis, and ICD-9-CM Code: 1995.

Sex, Age, Diagnosis, and ICD-9-CM Code Total Hospital Care Physician and Other Professional Services1 Home Health Care Prescription Drugs Medical Durables Nursing Home Care
Both Sexes, All Ages
All Conditions $2,884 $1,304 $925 $108 $211 $50 $286
Infectious and Parasitic Diseases 001-139 65 34 20 2 7 0 1
Neoplasms 140-239 157 102 36 8 4 1 7
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 124 53 27 10 17 2 16
Diseases of the Blood and Blood-Forming Organs 280-289 18 10 4 2 1 0 2
Mental Disorders 290-319 272 156 29 2 23 0 61
Diseases of the Nervous System and Sense Organs 320-389 241 48 105 8 13 35 33
Diseases of the Circulatory System 390-459 486 245 71 27 45 2 96
Diseases of the Respiratory System 460-519 226 112 65 6 29 2 11
Diseases of the Digestive System 520-579 330 104 197 4 19 0 7
Diseases of the Genitourinary System 580-629 137 64 54 3 11 0 6
Complications of Pregnancy, Childbirth, and the Puerperium 630-676 13 8 5 0 0 0 0
Diseases of the Skin and Subcutaneous Tissue 680-709 70 23 29 6 9 0 2
Diseases of the Musculoskeletal System and Connective Tissue 710-739 185 74 64 10 16 2 19
Congenital Anomalies 740-759 19 10 5 2 0 0 1
Certain Conditions Originating in the Perinatal Period 760-779 12 9 2 1 0 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 86 28 34 5 7 1 11
Injury and Poisoning 800-999 262 146 89 9 4 4 11
Supplementary Classifications V01-V82 182 78 90 3 7 0 3
Male, All Ages
All Conditions $2,613 $1,332 $822 $76 $178 $43 $161
Infectious and Parasitic Diseases 001-139 65 37 18 2 7 0 1
Neoplasms 140-239 149 98 34 7 3 1 5
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 110 53 26 6 13 2 8
Diseases of the Blood and Blood-Forming Organs 280-289 14 9 3 1 1 0
Mental Disorders 290-319 276 195 27 1 18 0 35
Diseases of the Nervous System and Sense Organs 320-389 215 52 89 8 11 31 25
Diseases of the Circulatory System 390-459 478 296 77 15 44 2 45
Diseases of the Respiratory System 460-519 215 115 57 6 26 2 9
Diseases of the Digestive System 520-579 303 98 181 3 16 0 4
Diseases of the Genitourinary System 580-629 99 50 38 2 5 0 5
Diseases of the Skin and Subcutaneous Tissue 680-709 67 26 26 6 8 0 2
Diseases of the Musculoskeletal System and Connective Tissue 710-739 140 63 53 5 11 1 7
Congenital Anomalies 740-759 18 10 4 2 0 0 1
Certain Conditions Originating in the Perinatal Period 760-779 12 10 2 0 0 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 74 30 28 3 5 1 6
Injury and Poisoning 800-999 273 156 100 6 4 3 5
Supplementary Classifications V01-V82 105 35 59 2 6 0 3
Male, Under 65 Years
All Conditions $1,827 $895 $697 $31 $138 $33 $34
Infectious and Parasitic Diseases 001-139 54 27 18 2 7 0 0
Neoplasms 140-239 67 49 16 1 1 0 0
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 75 38 23 1 10 1 2
Diseases of the Blood and Blood-Forming Organs 280-289 9 6 2 0 0 0 0
Mental Disorders 290-319 238 179 27 1 18 0 12
Diseases of the Nervous System and Sense Organs 320-389 144 33 63 6 9 26 7
Diseases of the Circulatory System 390-459 206 132 42 2 24 1 4
Diseases of the Respiratory System 460-519 141 61 52 3 23 1 0
Diseases of the Digestive System 520-579 258 69 174 1 13 0 1
Diseases of the Genitourinary System 580-629 60 30 25 0 3 0 1
Diseases of the Skin and Subcutaneous Tissue 680-709 51 18 22 3 8 0 0
Diseases of the Musculoskeletal System and Connective Tissue 710-739 108 49 47 2 9 0 0
Congenital Anomalies 740-759 19 11 4 2 0 0 1
Certain Conditions Originating in the Perinatal Period 760-779 14 11 2 0 0 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 55 26 21 1 4 1 2
Injury and Poisoning 800-999 253 137 105 2 4 3 2
Supplementary Classifications V01-V82 76 16 53 1 5 0 1
Male, 65 Years or Over
All Conditions $9,193 $4,997 $1,873 $458 $511 $129 $1,224
Infectious and Parasitic Diseases 001-139 153 119 17 4 8 1 4
Neoplasms 140-239 833 515 189 60 18 5 46
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 401 178 57 48 43 9 66
Diseases of the Blood and Blood-Forming Organs 280-289 63 36 10 4 3 0 10
Mental Disorders 290-319 598 326 29 5 17 0 220
Diseases of the Nervous System and Sense Organs 320-389 809 211 306 24 26 72 170
Diseases of the Circulatory System 390-459 2,756 1,664 363 119 211 13 385
Diseases of the Respiratory System 460-519 839 561 100 30 51 15 83
Diseases of the Digestive System 520-579 682 347 242 17 46 1 29
Diseases of the Genitourinary System 580-629 427 213 147 14 19 2 33
Diseases of the Skin and Subcutaneous Tissue 680-709 199 89 53 33 10 0 15
Diseases of the Musculoskeletal System and Connective Tissue 710-739 405 177 102 30 27 3 65
Congenital Anomalies 740-759 7 2 4 0 0 0 1
Symptoms, Signs, and Ill-Defined Conditions 780-799 240 60 90 24 14 5 46
Injury and Poisoning 800-999 440 308 56 37 3 4 31
Supplementary Classifications V01-V82 343 192 107 8 14 0 21
Male, 65-74 Years2
All Conditions $6,649 $3,782 $1,492 $267 $538 $120 $449
Infectious and Parasitic Diseases 001-139 100 74 14 1 10 1 1
Neoplasms 140-239 677 443 169 36 16 4 10
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 305 151 50 26 53 11 13
Diseases of the Blood and Blood-Forming Organs 280-289 36 26 5 1 3 0 2
Mental Disorders 290-319 332 180 25 4 21 0 102
Diseases of the Nervous System and Sense Organs 320-389 589 156 248 13 22 69 81
Diseases of the Circulatory System 390-459 2,047 1,330 315 61 216 12 113
Diseases of the Respiratory System 460-519 590 377 89 15 53 13 44
Diseases of the Digestive System 520-579 422 263 79 14 55 1 10
Diseases of the Genitourinary System 580-629 315 145 128 10 20 2 11
Diseases of the Skin and Subcutaneous Tissue 680-709 162 69 47 25 10 0 11
Diseases of the Musculoskeletal System and Connective Tissue 710-739 319 161 96 11 30 2 18
Congenital Anomalies 740-759 8 2 5 0 0 0 1
Symptoms, Signs, and Ill-Defined Conditions 780-799 166 43 66 15 14 1 28
Injury and Poisoning 800-999 298 212 53 25 3 4 1
Supplementary Classifications V01-V82 282 149 104 10 13 0 5
Male, 75-84 Years2
All Conditions $10,280 $5,377 $1,993 $659 $465 $145 $1,642
Infectious and Parasitic Diseases 001-139 180 138 19 7 4 0 11
Neoplasms 140-239 965 539 226 79 22 8 91
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 441 165 57 74 25 6 114
Diseases of the Blood and Blood-Forming Organs 280-289 73 33 19 5 5 0 12
Mental Disorders 290-319 535 227 26 4 11 0 267
Diseases of the Nervous System and Sense Organs 320-389 994 221 398 42 30 78 225
Diseases of the Circulatory System 390-459 3,255 1,939 427 179 194 15 502
Diseases of the Respiratory System 460-519 964 640 100 49 52 15 107
Diseases of the Digestive System 520-579 566 381 88 23 32 1 41
Diseases of the Genitourinary System 580-629 512 253 177 14 21 1 45
Diseases of the Skin and Subcutaneous Tissue 680-709 184 85 57 29 8 0 5
Diseases of the Musculoskeletal System and Connective Tissue 710-739 477 181 117 58 27 6 88
Congenital Anomalies 740-759 2 0 2 0 1 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 280 54 121 34 14 11 46
Injury and Poisoning 800-999 527 346 55 55 3 5 63
Supplementary Classifications V01-V82 326 175 104 6 16 0 25
Male, 85 Years or Over2
All Conditions $17,598 $7,932 $2,068 $1,170 $491 $132 $5,804
Infectious and Parasitic Diseases 001-139 400 335 33 19 12 0 0
Neoplasms 140-239 1,004 483 169 181 20 3 148
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 844 296 92 116 37 8 295
Diseases of the Blood and Blood-Forming Organs 280-289 212 106 13 27 0 0 66
Mental Disorders 290-319 1,334 272 42 8 13 0 998
Diseases of the Nervous System and Sense Organs 320-389 1,414 237 361 36 41 68 671
Diseases of the Circulatory System 390-459 5,563 2,416 427 344 242 9 2,125
Diseases of the Respiratory System 460-519 1,831 1,233 170 75 29 23 301
Diseases of the Digestive System 520-579 935 646 104 24 32 1 129
Diseases of the Genitourinary System 580-629 791 426 151 47 4 3 160
Diseases of the Skin and Subcutaneous Tissue 680-709 442 156 71 118 14 0 83
Diseases of the Musculoskeletal System and Connective Tissue 710-739 677 164 90 57 12 1 353
Congenital Anomalies 740-759 10 0 1 0 0 0 10
Symptoms, Signs, and Ill-Defined Conditions 780-799 487 75 131 62 13 9 198
Injury and Poisoning 800-999 1,044 759 81 53 5 5 141
Supplementary Classifications V01-V82 610 327 134 3 19 1 128
Female, All Ages
All Conditions $3,143 $1,278 $1,023 $138 $242 $56 $406
Infectious and Parasitic Diseases 001-139 65 31 22 2 7 0 2
Neoplasms 140-239 164 105 38 8 4 1 8
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 138 53 27 13 20 2 23
Diseases of the Blood and Blood-Forming Organs 280-289 21 10 4 3 0 0 3
Mental Disorders 290-319 267 119 31 4 28 0 85
Diseases of the Nervous System and Sense Organs 320-389 266 44 120 8 15 38 40
Diseases of the Circulatory System 390-459 495 196 66 39 46 2 145
Diseases of the Respiratory System 460-519 236 110 72 6 32 2 12
Diseases of the Digestive System 520-579 356 109 212 4 21 1 9
Diseases of the Genitourinary System 580-629 174 78 70 3 16 0 7
Complications of Pregnancy, Childbirth, and the Puerperium 630-676 25 15 10 0 0 0 0
Diseases of the Skin and Subcutaneous Tissue 680-709 72 21 32 7 10 0 3
Diseases of the Musculoskeletal System and Connective Tissue 710-739 228 85 74 15 20 3 30
Congenital Anomalies 740-759 19 9 6 2 0 0 2
Certain Conditions Originating in the Perinatal Period 760-779 12 8 2 2 0 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 98 26 40 6 9 1 16
Injury and Poisoning 800-999 253 138 78 12 4 4 17
Supplementary Classifications V01-V82 255 119 120 3 8 0 4
Female, Under 65 Years
All Conditions $2,064 $851 $909 $39 $191 $45 $30
Infectious and Parasitic Diseases 001-139 54 22 22 2 7 0 0
Neoplasms 140-239 100 66 27 4 2 1 1
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 70 30 19 4 13 2 2
Diseases of the Blood and Blood-Forming Organs 280-289 11 7 3 0 0 0 0
Mental Disorders 290-319 172 103 28 1 29 0 11
Diseases of the Nervous System and Sense Organs 320-389 173 28 87 5 13 33 6
Diseases of the Circulatory System 390-459 121 58 34 4 20 1 5
Diseases of the Respiratory System 460-519 165 62 70 2 30 1 1
Diseases of the Digestive System 520-579 291 65 208 1 16 0 0
Diseases of the Genitourinary System 580-629 152 69 65 2 16 0 0
Complications of Pregnancy, Childbirth, and the Puerperium 630-676 30 18 11 0 0 0 0
Diseases of the Skin and Subcutaneous Tissue 680-709 53 13 29 2 10 0 0
Diseases of the Musculoskeletal System and Connective Tissue 710-739 133 51 63 2 15 2 0
Congenital Anomalies 740-759 21 11 6 3 0 0 1
Certain Conditions Originating in the Perinatal Period 760-779 14 10 2 2 0 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 66 23 32 1 8 0 1
Injury and Poisoning 800-999 175 89 75 2 4 4 1
Supplementary Classifications V01-V82 262 126 127 2 7 0 0
Female, 65 Years or Over
All Conditions $9,375 $3,742 $1,679 $715 $535 $125 $2,579
Infectious and Parasitic Diseases 001-139 129 84 22 4 9 0 10
Neoplasms 140-239 532 328 98 36 17 2 51
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 534 186 72 64 61 6 145
Diseases of the Blood and Blood-Forming Organs 280-289 81 28 12 19 1 1 21
Mental Disorders 290-319 818 212 49 18 23 0 517
Diseases of the Nervous System and Sense Organs 320-389 803 136 308 27 28 68 236
Diseases of the Circulatory System 390-459 2,651 996 255 240 193 12 956
Diseases of the Respiratory System 460-519 643 390 85 34 45 9 79
Diseases of the Digestive System 520-579 731 365 229 24 48 2 62
Diseases of the Genitourinary System 580-629 302 132 98 9 19 1 43
Diseases of the Skin and Subcutaneous Tissue 680-709 179 68 51 33 9 0 17
Diseases of the Musculoskeletal System and Connective Tissue 710-739 772 282 139 90 48 11 203
Congenital Anomalies 740-759 7 0 3 1 0 0 2
Symptoms, Signs, and Ill-Defined Conditions 780-799 279 40 84 36 15 3 102
Injury and Poisoning 800-999 700 418 92 67 5 8 111
Supplementary Classifications V01-V82 214 78 82 13 15 1 24
Female, 65-74 Years2
All Conditions $5,831 $2,763 $1,375 $371 $583 $117 $621
Infectious and Parasitic Diseases 001-139 80 51 20 1 7 0 1
Neoplasms 140-239 488 320 95 32 21 2 18
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 402 146 65 46 84 8 53
Diseases of the Blood and Blood-Forming Organs 280-289 43 23 9 8 1 1 2
Mental Disorders 290-319 405 182 40 14 27 0 143
Diseases of the Nervous System and Sense Organs 320-389 595 101 293 18 25 68 91
Diseases of the Circulatory System 390-459 1,358 687 204 95 190 8 173
Diseases of the Respiratory System 460-519 472 271 82 20 51 9 40
Diseases of the Digestive System 520-579 424 266 79 16 52 1 10
Diseases of the Genitourinary System 580-629 225 81 102 3 24 0 13
Diseases of the Skin and Subcutaneous Tissue 680-709 127 43 49 20 11 0 4
Diseases of the Musculoskeletal System and Connective Tissue 710-739 525 252 134 39 55 10 35
Congenital Anomalies 740-759 8 0 2 1 0 0 4
Symptoms, Signs, and Ill-Defined Conditions 780-799 145 33 60 15 14 3 20
Injury and Poisoning 800-999 376 249 68 38 3 6 11
Supplementary Classifications V01-V82 159 57 74 7 17 1 3
Female, 75-84 Years2
All Conditions $10,418 $4,360 $1,686 $908 $516 $136 $2,814
Infectious and Parasitic Diseases 001-139 175 103 23 10 13 0 24
Neoplasms 140-239 602 366 116 46 15 2 58
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 586 194 72 81 37 5 198
Diseases of the Blood and Blood-Forming Organs 280-289 83 32 9 20 1 1 21
Mental Disorders 290-319 949 236 50 17 17 0 629
Diseases of the Nervous System and Sense Organs 320-389 1,002 198 345 38 33 73 316
Diseases of the Circulatory System 390-459 2,975 1,204 278 320 208 15 950
Diseases of the Respiratory System 460-519 732 438 82 50 40 12 110
Diseases of the Digestive System 520-579 650 425 87 34 45 5 54
Diseases of the Genitourinary System 580-629 319 160 99 8 14 2 35
Diseases of the Skin and Subcutaneous Tissue 680-709 183 73 53 37 7 0 13
Diseases of the Musculoskeletal System and Connective Tissue 710-739 818 307 161 109 47 12 183
Congenital Anomalies 740-759 6 0 5 0 0 0 0
Symptoms, Signs, and Ill-Defined Conditions 780-799 324 42 106 44 17 3 112
Injury and Poisoning 800-999 766 488 106 78 7 6 81
Supplementary Classifications V01-V82 248 95 94 14 14 1 31
Female, 85 Years or Over2
All Conditions $19,376 $5,993 $1,497 $1,587 $393 $127 $9,778
Infectious and Parasitic Diseases 001-139 204 164 24 0 5 1 10
Neoplasms 140-239 517 259 56 22 7 4 168
Endocrine, Nutritional, and Metabolic Diseases, and Immunity Disorders 240-279 898 322 82 91 28 5 370
Diseases of the Blood and Blood-Forming Organs 280-289 217 37 23 59 1 2 96
Mental Disorders 290-319 2,062 251 37 40 18 0 1,717
Diseases of the Nervous System and Sense Organs 320-389 1,087 110 246 37 30 57 607
Diseases of the Circulatory System 390-459 6,902 1,676 343 607 165 18 4,094
Diseases of the Respiratory System 460-519 1,067 739 88 46 35 4 154
Diseases of the Digestive System 520-579 1,063 604 98 35 39 0 287
Diseases of the Genitourinary System 580-629 552 258 63 34 11 2 185
Diseases of the Skin and Subcutaneous Tissue 680-709 366 157 38 80 8 1 81
Diseases of the Musculoskeletal System and Connective Tissue 710-739 1,621 331 89 244 22 10 924
Congenital Anomalies 740-759 7 0 2 1 0 0 3
Symptoms, Signs, and Ill-Defined Conditions 780-799 677 57 100 95 11 7 406
Injury and Poisoning 800-999 1,809 910 137 158 3 17 584
Supplementary Classifications V01-V82 328 117 73 36 10 0 92
1

All expenditures for dental services are allocated to diseases of the digestive system.

2

Excludes expenditures for Department of Veterans Affairs hospitals, physician services in nursing homes, and dental services that cannot be distributed by age at ages 65 or over.

NOTES: The figure 0 denotes amounts less than $.50. Expenditures for hospice services may be included with expenditures for hospital, nursing home, or home health care according to who provided the services. Numbers may not add to totals because of rounding. ICD-9-CM is International Classification of Diseases, 9th Revision, Clinical Modification.

SOURCE: (Public Health Service and Health Care Financing Administration, 1980.) Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

Age and Health Service Type

Total allocated expenditures in 1995 were $757.8 billion in aggregate and $2,884 per capita (Table 4). Persons under age 65 years accounted for 59 percent of aggregate PHCE, those age 65 or over the remaining 41 percent. The distribution between the two age groups varied by the type of health service. Persons under age 65 were relatively heavy users of professional services (76 percent of the total for these services), prescription drugs and medical durables (68 percent), and hospital care (58 percent). The elderly, however, were the predominant users of home health care and nursing home care, accounting for 72 and 90 percent of the totals, respectively, for these services. Aggregate expenditures continued to decrease with age among the elderly except for home health care, which was more evenly distributed among age groups, and nursing home care, which increased sharply with age. The patterns observed for home health care and nursing home care are attributable to heavy use of these services by older females.

Table 4. Allocated Personal Health Care Expenditures Aggregate and per Capita Amounts and Percent Distribution, by Health Service and Age: 1995.

Age Total Hospital Care Professional Services Home Health Care Drugs and Medical Durables Nursing Home Care
Amount in Billions
All Ages $757.8 $342.7 $243.0 $28.4 $68.5 $75.2
Under 65 Years 446.0 200.1 184.1 7.9 46.6 7.3
65-74 Years 116.2 60.3 26.8 6.1 12.8 10.2
75-84 Years 115.5 53.0 20.1 9.0 7.1 26.3
85 Years or Over 68.5 23.7 6.0 5.3 2.0 31.4
Percent Distribution
All Ages 100.0 100.0 100.0 100.0 100.0 100.0
Under 65 Years 58.9 58.4 75.8 27.8 68.0 9.7
65-74 Years 15.3 17.6 11.0 21.5 18.7 13.6
75-84 Years 15.2 15.5 8.3 31.7 10.4 35.0
85 Years or Over 9.0 6.9 2.5 18.7 2.9 41.8
Per Capita Amount
All Ages $2,884 $1,304 $925 $108 $261 $286
Under 65 Years 1,946 873 803 35 203 32
65-74 Years 6,194 3,216 1,427 325 681 545
75-84 Years 10,365 4,755 1,805 811 636 2,358
85 Years or Over 18,877 6,536 1,657 1,470 550 8,665
Percent Distribution
All Ages 100.0 45.2 32.1 3.7 9.0 9.9
Under 65 Years 100.0 44.9 41.3 1.8 10.4 1.6
65-74 Years 100.0 51.9 23.1 5.2 11.0 8.8
75-84 Years 100.0 45.9 17.4 7.8 6.1 22.8
85 Years or Over 100.0 34.6 8.8 7.7 2.9 45.8

NOTES: Expenditures in Department of Veterans Affairs hospitals are not included in expenditures for ages 65-74, 75-84, and 85 or over. Numbers and percents may not add to totals shown because of rounding.

SOURCE: Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

However, although persons 65 or over represented less than 15 percent of the population (Byerly and Deardorff, 1995), they accounted for 41 percent of total aggregate expenditures. Per capita expenditures were higher for the elderly for every health service and increased with age from $1,946 per person under 65 years to $18,877 at age 85 or over. For all persons age 65 or over, per capita expenditures were $9,301. More was spent on hospital care than any other service except for persons age 85 or over, for whom hospital expenditures were second to expenditures for nursing homes. Although not the sole cause, nursing home care was the leading cause of rising per capita expenditures as age increased. More than three-fourths of nursing home expenditures were incurred at ages 75 or over, and nursing home care was responsible for 23 percent of all expenditures among persons age 75-84 and 46 percent of the total for those 85 or over.

Projections show that the number of elderly, especially the oldest old (85 or over), will grow and constitute an increasing proportion of the population in the coming years as baby boomers age (Waite, 1996). As the number of elderly grows relative to the rest of the population, so too will their share of health care expenditures.

Sex and Health Service Type

Females accounted for 56 percent of aggregate PHCE and males for 44 percent (Table 5). Females had higher aggregate expenditures than males for each type of health service except hospital care, for which there was virtually no difference, but female expenditures for home health care and nursing home care were especially high compared with males (66 and 73 percent of the totals for these services). Only some of the difference in aggregate expenditures between males and females is due to the larger number of females. Total per capita expenditures were 20 percent higher for females compared with a 26-percent difference in total aggregate expenditures. Males spent slightly more per person for hospital care, but spending by females was significantly higher for all other services and was 2.5 times as high for nursing home care. The two sexes differed in their use of various health services, mainly with respect to hospitals and nursing homes. Slightly more than one-half of male expenditures were for hospital care versus 41 percent for females, while nursing home care accounted for 13 percent of total female spending compared with only 6 percent among males.

Table 5. Allocated Personal Health Care Expenditures Aggregate and per Capita Amounts and Percent Distribution, by Health Service and Sex: 1995.

Sex Total Hospital Care Professional Services Home Health Care Drugs and Medical Durables Nursing Home Care
Amount in Billions
Both Sexes $757.8 $342.7 $243.0 $28.4 $68.5 $75.2
Male 335.3 171.0 105.5 9.8 28.4 20.6
Female 422.6 171.8 137.5 18.6 40.1 54.6
Percent Distribution
Both Sexes 100.0 100.0 100.0 100.0 100.0 100.0
Male 44.2 49.9 43.4 34.5 41.5 27.4
Female 55.8 50.1 56.6 65.5 58.5 72.6
Per Capita Amount
Both Sexes $2,884 $1,304 $925 $108 $261 $286
Male 2,613 1,332 822 76 221 161
Female 3,143 1,278 1,023 138 298 406
Percent Distribution
Both Sexes 100.0 45.2 32.1 3.7 9.0 9.9
Male 100.0 51.0 31.5 2.9 8.5 6.1
Female 100.0 40.7 32.5 4.4 9.5 12.9

NOTE: Numbers and percents may not add to totals shown because of rounding.

SOURCE: Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

Expenditures by Diagnosis

Diseases of the circulatory system (including, for example, heart disease, stroke, and hypertension) were the most expensive category, costing $127.8 billion and accounting for 17 percent of all PHCE (Figure 1). Diseases of the digestive system, including all dental expenditures, were a distant second at $86.7 billion and 11 percent of aggregate PHCE. Rounding out the six most costly disease categories in descending order were mental disorders ($71.4 billion and 9 percent), injuries and poisonings ($69.0 billion and 9 percent), nervous system and sense organ diseases ($63.3 billion and 8 percent), and respiratory diseases ($59.3 billion and 8 percent). Together, these six disease groups accounted for almost two-thirds of all PHCE. Nevertheless, despite this apparent concentration, medical care expenditures were fairly widely distributed across the spectrum of illness and disease. Except for circulatory and digestive diseases, each including a variety of specific conditions, no other category was responsible for as much as 10 percent of aggregate PHCE. Neoplasms, including all cancers, for example, represent only 5 percent of total PHCE.

Figure 1. Allocated Personal Health Care Expenditures, by Age and Diagnosis: 1995.

Figure 1

Age, Sex, and Diagnosis

For most disease categories, aggregate expenditures were higher for those under 65 years. More than 70 percent of aggregate PHCE for infectious and parasitic diseases, diseases of the digestive system (due in large measure to high expenditures for dental care), injury and poisoning, and supplementary classifications were for those under age 65. And the younger age group had two-thirds of the expenditures for mental disorders, diseases of the genitourinary system, and diseases of the skin and subcutaneous tissue. The elderly had slightly higher expenditures for neoplasms and diseases of the blood and blood-forming organs and accounted for 71 percent of expenditures for diseases of the circulatory system. Females had higher expenditures for all conditions except injury and poisoning, which were only slightly higher for males. But differences in expenditures between males and females for each diagnosis were not as large as differences between persons under and over 65 years.

However, when population size is taken into account, with few exceptions, per capita expenditures increase with age, regardless of diagnosis, for males and females (Table 6). Diagnoses in Table 6 are arranged in descending order of aggregate expenditures as in Figure 1. This order is roughly followed for males and females at different ages, but there are some notable differences. Circulatory diseases are far and away the most expensive diseases for those age 65 or over but rank fourth and ninth, respectively, for younger males and females. Neoplasms are second most expensive for elderly males but only tenth among younger males. On the other hand, injuries and poisonings are relatively more expensive for persons under age 65, especially among males.

Table 6. Allocated Personal Health Care Expenditures per Capita Amounts and Percent Distribution by Diagnosis, According to Sex and Age: 1995.

Diagnosis Male Female


All Ages Under 65 Years 65-74 Years 75-84 Years 85 Years or Over All Ages Under 65 Years 65-74 Years 75-84 Years 85 Years or Over
Per Capita Amount
Total $2,613 $1,827 $6,649 $10,280 $17,598 $3,143 $2,064 $5,831 $10,418 $19,376
Circulatory Diseases 478 206 2,047 3,255 5,563 495 121 1,358 2,975 6,902
Digestive Diseases 303 258 422 566 935 356 291 424 650 1,063
Mental Disorders 276 238 332 535 1,334 267 172 405 949 2,062
Injuries and Poisonings 273 253 298 527 1,044 253 175 376 766 1,809
Nervous System and Sense Organs 215 144 589 994 1,414 266 173 595 1,002 1,087
Respiratory Diseases 215 141 590 964 1,831 236 165 472 732 1,067
Musculoskeletal and Connective Tissues 140 108 319 477 677 228 133 525 818 1,621
Supplementary Classifications 105 76 282 326 610 255 262 159 248 328
Neoplasms 149 67 677 965 1,004 164 100 488 602 517
Genitourinary System Diseases 99 60 315 512 791 174 152 225 319 552
Endocrine, Nutritional-Metabolic, and Immunity Disorders 110 75 305 441 844 138 70 402 586 898
Symptoms, Signs, Ill-Defined Conditions 74 55 166 280 487 98 66 145 324 677
Skin and Subcutaneous Tissues 67 51 162 184 442 72 53 127 183 366
Infectious and Parasitic Diseases 65 54 100 180 400 65 54 80 175 204
Congenital Anomalies 18 19 8 2 10 19 21 8 6 7
Blood and Blood-Forming Organs 14 9 36 73 212 21 11 43 83 217
Complications of Pregnancy and Childbirth 0 0 0 0 0 25 30 0 0 0
Conditions Originating in Perinatal Period 12 14 0 0 0 12 14 0 0 0
Percent Distribution
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Circulatory Diseases 18.3 11.3 30.8 31.7 31.6 15.7 5.9 23.3 28.6 35.6
Digestive Diseases 11.6 14.1 6.3 5.5 5.3 11.3 14.1 7.3 6.2 5.5
Mental Disorders 10.6 13.0 5.0 5.2 7.6 8.5 8.3 6.9 9.1 10.6
Injuries and Poisonings 10.4 13.8 4.5 5.1 5.9 8.0 8.5 6.4 7.4 9.3
Nervous System and Sense Organs 8.2 7.9 8.9 9.7 8.0 8.5 8.4 10.2 9.6 5.6
Respiratory Diseases 8.2 7.7 8.9 9.4 10.4 7.5 8.0 8.1 7.0 5.5
Musculoskeletal and Connective Tissues 5.4 5.9 4.8 4.6 3.8 7.3 6.4 9.0 7.9 8.4
Supplementary Classifications 4.0 4.2 4.2 3.2 3.5 8.1 12.7 2.7 2.4 1.7
Neoplasms 5.7 3.7 10.2 9.4 5.7 5.2 4.8 8.4 5.8 2.7
Genitourinary System Diseases 3.8 3.3 4.7 5.0 4.5 5.5 7.4 3.9 3.1 2.8
Endocrine, Nutritional-Metabolic, and Immunity Disorders 4.2 4.1 4.6 4.3 4.8 4.4 3.4 6.9 5.6 4.6
Symptoms, Signs, Ill-Defined Conditions 2.8 3.0 2.5 2.7 2.8 3.1 3.2 2.5 3.1 3.5
Skin and Subcutaneous Tissues 2.6 2.8 2.4 1.8 2.5 2.3 2.6 2.2 1.8 1.9
Infectious and Parasitic Diseases 2.5 3.0 1.5 1.8 2.3 2.1 2.6 1.4 1.7 1.1
Congenital Anomalies 0.7 1.0 0.1 0.0 0.1 0.6 1.0 0.1 0.1 0.0
Blood and Blood-Forming Organs 0.5 0.5 0.5 0.7 1.2 0.7 0.5 0.7 0.8 1.1
Complications of Pregnancy and Childbirth 0.0 0.0 0.0 0.0 0.0 0.8 1.5 0.0 0.0 0.0
Conditions Originating in Perinatal Period 0.5 0.8 0.0 0.0 0.0 0.4 0.7 0.0 0.0 0.0

NOTES: Expenditures in Department of Veterans Affairs hospitals are not included in expenditures for ages 65-74, 75-84, and 85 or over. Numbers may not add to totals because of rounding.

SOURCE: Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

Among persons under 65 years, more than 35 percent of expenditures were incurred for just three diagnosis groups, digestive diseases (14 percent), injuries and poisonings (11 percent), and mental disorders (11 percent), although the proportions differ somewhat for males and females, and circulatory diseases were also significant for younger males. For those age 65 or over, circulatory diseases alone accounted for 29 percent of expenditures, and no other category represents as much as 9 percent of the total for the elderly. For females age 85 or over, 36 percent of expenditures were for circulatory diseases.

Although total per capita expenditures were higher for females, there were no consistent patterns by sex among diagnoses. For some conditions, males have higher per capita expenditures at one age and females at another age.

Health Service Type and Diagnosis

Per capita expenditures for the six most costly diagnosis groups, which together account for almost two-thirds of aggregate PHCE, are shown in Table 7 by health service type and age. Per capita expenditures for each diagnosis increase markedly with age, mostly due to increased use of hospitals and nursing homes. But the rate of increase was higher for nursing homes, with a resulting shift in the relative magnitude of expenditures from hospital to nursing home services. This is especially so, even among persons age 65 or over, for circulatory diseases, mental disorders, and to a lesser extent, injuries and poisonings and the nervous system and sense organs. For circulatory diseases, hospital expenditures decrease from 59 percent of total expenditures at 65-74 years to 29 percent at ages 85 or over, while nursing home spending increases from 9 to 54 percent of the total. For mental disorders, as age increases, hospital spending decreases from 49 to 14 percent, and nursing home costs rise from 33 to 82 percent. Respiratory diseases, on the other hand, exhibit different relationships with age. Hospital care accounts for a larger proportion of total spending as patients age, increasing from 40 percent under 65 years to 69 percent at age 85 or over. Nursing home expenditures also increase with age, almost doubling from 65-74 years to age 85 or over, but remain a relatively small share of the total for respiratory conditions compared with other diseases in Table 7.

Table 7. Allocated Personal Health Care Expenditures Aggregate and per Capita Amounts and Percent Distribution, by Diagnosis and Age: 1995.

Sex Total Hospital Care Professional Services Home Health Care Drugs and Medical Durables Nursing Home Care
Circulatory Diseases Per Capita Amount
Under 65 Years $164 $95 $38 $3 $23 $4
65-74 Years 1,663 973 253 80 211 146
75-84 Years 3,085 1,490 336 266 217 776
85 Years or Over 6,525 1,883 366 533 201 3,542
Digestive Diseases
Under 65 Years 274 67 191 1 14 1
65-74 Years 422 264 79 15 54 10
75-84 Years 617 407 87 30 44 49
85 Years or Over 1,027 616 99 32 37 243
Mental Disorders
Under 65 Years 205 141 27 1 24 12
65-74 Years 371 181 33 9 24 124
75-84 Years 788 232 41 12 15 488
85 Years or Over 1,858 257 38 31 17 1,515
Injury and Poisoning
Under 65 Years 214 113 90 2 7 1
65-74 Years 341 233 61 32 8 7
75-84 Years 672 432 86 69 11 74
85 Years or Over 1,595 868 121 129 17 460
Nervous System and Sense Organs
Under 65 Years 158 31 75 5 40 7
65-74 Years 592 126 273 16 91 86
75-84 Years 999 207 365 40 107 280
85 Years or Over 1,178 145 278 37 93 625
Respiratory Diseases
Under 65 Years 153 62 61 3 27 1
65-74 Years 525 318 85 17 63 42
75-84 Years 822 516 89 50 58 109
85 Years or Over 1,281 878 111 54 42 196
Circulatory Diseases Percent Distribution
Under 65 Years 100.0 58.1 23.3 2.0 13.9 2.7
65-74 Years 100.0 58.5 15.2 4.8 12.7 8.8
75-84 Years 100.0 48.3 10.9 8.6 7.0 25.2
85 Years or Over 100.0 28.9 5.6 8.2 3.1 54.3
Digestive Diseases
Under 65 Years 100.0 24.5 69.7 0.4 5.1 0.4
65-74 Years 100.0 62.6 18.7 3.6 12.8 2.4
75-84 Years 100.0 66.0 14.1 4.9 7.1 7.9
85 Years or Over 100.0 60.0 9.6 3.1 3.6 23.7
Mental Disorders
Under 65 Years 100.0 69.0 13.4 0.4 11.5 5.6
65-74 Years 100.0 48.8 8.9 2.4 6.5 33.4
75-84 Years 100.0 29.4 5.2 1.5 1.9 61.9
85 Years or Over 100.0 13.8 2.0 1.7 0.9 81.5
Injury and Poisoning
Under 65 Years 100.0 52.9 42.2 1.0 3.3 0.6
65-74 Years 100.0 68.3 17.9 9.4 2.3 2.1
75-84 Years 100.0 64.3 12.8 10.3 1.6 11.0
85 Years or Over 100.0 54.4 7.6 8.1 1.1 28.8
Nervous System and Sense Organs
Under 65 Years 100.0 19.3 47.4 3.4 25.5 4.3
65-74 Years 100.0 21.3 46.1 2.7 15.4 14.5
75-84 Years 100.0 20.7 36.5 4.0 10.7 28.0
85 Years or Over 100.0 12.3 23.6 3.1 7.9 53.1
Respiratory Diseases
Under 65 Years 100.0 40.2 40.0 1.7 17.8 0.3
65-74 Years 100.0 60.6 16.2 3.2 12.0 8.0
75-84 Years 100.0 62.8 10.8 6.1 7.1 13.3
85 Years or Over 100.0 68.5 8.7 4.2 3.3 15.3

NOTES: Expenditures in Department of Veterans Affairs hospitals are not included in expenditures for ages 65-74, 75-84, and 85 or over. Numbers and percents may not add to totals because of rounding.

SOURCE: Hodgson, T.A. and Cohen, A.J., National Center for Health Statistics, Centers for Disease Control and Prevention, Hyattsville, Maryland, 1999.

Although expenditures for individual disease categories may be quite different, over all medical conditions, hospital and nursing home care accounted for 68 percent of total expenditures for persons age 65 or over. There is a considerable shift in institutional utilization and spending from the hospital to the nursing home as the elderly grow older. Spending for hospital care declined with age from 52 percent of total spending at 65-74 years to 35 percent at age 85 or over, while the proportion for nursing home care increased from 9 to 46 percent, reaching 51 percent for females age 85 or over. Spending on various kinds of health services may be determined at least in part by diseases experienced, but spending for health services within a diagnosis group varies significantly by age. Some of this variation may be explained by differences in age-related prevalence and/or incidence of specific conditions within the broad diagnosis groups. An analysis and explanation of these and other relationships mentioned in our brief discussion of estimated expenditures is beyond the scope of this article.

Detailed cross tabulations by sex, age, diagnosis, and health service type are given in Table 8 for aggregate and Table 9 for per capita expenditures.

Discussion

This study reports how PHCE are distributed by sex, age, type of health care service, and diagnosis, with emphasis on expenditures among the elderly, age 65 or over, the segment of the population with the highest per capita expenditures. There are both strengths and weaknesses to this study.

First, the same methods and data are employed to estimate expenditures for each of 18 broad categories of disease. Consistent methods and data ensure that expenditures among diseases can be compared without fear of bias in the relative magnitude of expenditures for different diseases. However, with existing data, diagnosis cannot be assigned to almost 13 percent of PHCE.

Second, disaggregation of HCFA's PHCE means the sum of expenditures across all diseases plus unallocated expenditures total to HCFA's PHCE for each type of service, which are published and widely recognized estimates of health care expenditures. The sum of expenditures across diseases does not exceed total expenditures, which has been known to happen when the results of independent studies using diverse data, methods, and assumptions are aggregated.

However, because health service utilization and expenditures are classified according to the first-listed or primary diagnosis on medical records, the contribution of comorbidities to expenditures is ignored. When individuals suffer from more than one condition, comorbidities raise the cost of medical care. In the physician's office, more tests and procedures are required and more time is spent with the patient. Hospital stays are longer, the charge per day may be higher. When all health services are charged to the first-listed diagnosis, the distribution of expenditures by diagnosis may be distorted. The nature and magnitude of the distortion and which diagnoses are affected and by how much are unknown.

Third, although the tables only show expenditures for the major categories of health care services for which HCFA publishes annual data, expenditures for hospital care, professional services, and medical durables are each the sum of separately estimated components. For example, total hospital care includes inpatient care, care in outpatient and emergency departments, and home health care provided by hospital-based facilities. Employing the most detailed breakdown of health care services that data allow provides a more accurate distribution of expenditures by diagnosis by taking into account the variation in utilization and charges across components of a health care service. For example, the relative importance of hospital inpatient and outpatient care varies by diagnosis. Accounting for this variation rather than treating all forms of hospital expenditures alike avoids distortion of the distribution of hospital expenditures by diagnosis. Newly available data, such as NHAMCS for hospital outpatient and emergency departments, permits more detailed analysis of health services than was possible in earlier studies.

A limitation here is that PHCE are based on establishment revenue. Hospital expenditures, for example, include not only revenue for services provided to patients, but non-patient operating revenue, such as gift shop and parking lot receipts, and non-operating revenues, such as interest income, contributions, and grants (Lazenby et al., 1992). Revenue for hospital services to patients constitutes the vast majority of hospital expenditures, but the total overstates expenditures for patient services. The overstatement is greatest for hospital care because a larger share of revenue for other services is directly medical in nature.

Fourth, this is the first study of PHCE to report health care expenditures among the elderly, revealing how the relative importance of diagnosis and type of health service used changes with increasing age. It shows, for example, that at age 85 or over, more than 50 percent of all health care expenditures for females is for nursing home care. And just two medical conditions, mental disorders and diseases of the circulatory system, are associated with 60 percent of nursing home expenditures for this group of females. It is projected that in scarcely more than 20 years, the population age 85 or over will double (Waite, 1996). The results of this analysis can inform the decisionmaking process as the Nation confronts the health care needs of a population inexorably growing older.

Because expenditures in a category are for services rendered in that type of establishment, there is some misallocation of expenditures by type of service. Services of salaried professionals employed by hospitals, nursing homes, and some other health care establishments are included with services provided by the respective establishment; care provided by hospital residents is counted as hospital care, etc. (Lazenby et al., 1992). Expenditures for drugs provided to patients in hospitals and nursing homes are included in spending for these providers' services (Lazenby et al., 1992). Discussion of data and methods for estimating PHCE, including periodic revisions and improvements, can be found in several articles (Lindsey and Newhouse, 1986; Health Care Financing Administration, 1990; Haber and Newhouse, 1991; Lazenby et al., 1992; Levit et al., 1997).

Acknowledgments

The authors gratefully acknowledge helpful comments from anonymous reviewers, which improved the presentation of this analysis.

Footnotes

The authors are with the National Center for Health Statistics, Centers for Disease Control and Prevention. Support was provided by an Inter-agency Agreement between the Office of Demography of Aging, National Institute on Aging, National Institutes of Health, and the National Center for Health Statistics, Centers for Disease Control and Prevention. The views expressed in this article are those of the authors and do not necessarily reflect the views of the Centers for Disease Control and Prevention, the National Institutes of Health, or HCFA.

Reprint Requests: Thomas A. Hodgson, Ph.D., National Center for Health Statistics, 6525 Belcrest Road, Hyattsville, MD 20782. E-mail: TAH2@cdc.gov

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