Chronic Illness Accounts for 75 Percent of Health Spending

“The closely watched annual health spending figures released today by the federal government were published, fittingly enough, in the January/February issue of the journal Health Affairs. Fittingly, because this month's issue is devoted to chronic illness, and about 75 percent of the $2.2 trillion the United States spends on healthcare goes toward treating chronic conditions like diabetes, heart disease, and cancer. That $2.2 trillion works out to $7,421 per person. The out-of-pocket cost, which is what individuals are most concerned about, comes to $889 apiece, 5.3 percent higher than it was in 2006, according to the Centers for Medicare and Medicaid Services, which released the figures. The American Diabetes Association reports that in 2005, someone with moderate type 2 diabetes might rack up $9,646 in medical costs for insulin and other medications, blood-glucose testing equipment and supplies, and physician visits. But that figure represents total costs, not out-of-pocket expenses. If you have insurance, some portion of that total—perhaps a large portion—will be covered, and your out-of-pocket costs may be significantly lower than that total.”

http://www.usnews.com/blogs/on-health-and-money/2009/01/06/chronic-illness-accounts-for-75-percent-of-health-spending.html