Markets and Economy
Out-of-Pocket Healthcare Spending Accelerates
A report from the JPMorgan Chase Institute tracks several trends in how US households are spending on healthcare. Out-of-pocket spending has grown for three consecutive years.
New research from the JPMorgan Chase Institute shows that US households’ out-of-pocket healthcare spending has accelerated for three consecutive years, growing across every state and demographic group in the study. For the first time in three years, an uptick was seen in healthcare spending burden as a percent of take-home income. The report—titled On the Rise: Out-of-Pocket Healthcare Spending in 2017—also shows that healthcare spending in California grew by double digits.
The researchers who developed the report leveraged financial transaction data to get a unique view of families’ healthcare out-of-pocket spending and financial burden.
Here are a few more of the key findings:
- Year-over-year growth in out-of-pocket healthcare spending levels accelerated since 2014 to 8.5 percent in 2017. The burden of healthcare spending as a percentage of take-home income ticked up slightly.
- In 2017, high-income families experienced the fastest growth in healthcare spending, while low-income families experienced the highest growth in healthcare spending burden.
- Out-of-pocket healthcare spending grew the most at hospitals and "other" healthcare providers and decreased at drug stores for the third consecutive year.