Pater Familias

Theories, observations, and articles, by Philip Schaefer · All posts · Categories

WHAT ARE THE IMPLICATIONS OF YESTERDAY’S POST?

September 15, 2008 · Economics

WHAT ARE THE IMPLICATIONS OF YESTERDAY’S POST? Yesterday’s post simply stated the conclusion of the Burtless study that “on average, annual health spending per person — from all private and government sources — is equal for the poorest and the richest Americans. In 2003, it was $4,477 for the poorest fifth and $4,451 for the richest.” I left the conclusion without comment partly to emphasize it and partly because I don’t have a lot more to say than to express surprise. I couldn’t find the study on Google. There may be questions about the methodology of the study, especially given the convoluted, jerry-built nature of health-care financing. It may be that the health of the poorest fifth is a lot worse than that of the rich so expenditures on the poorest ought to be a lot larger. Expenditures are not the same as outcomes (mortality by income quintile). The Samuelson article cited a study which “compared the insured and uninsured after the onset of a chronic illness — say, heart disease or diabetes.” The conclusion: “Outcomes differed little.”