Health Care of the Poor Elderly: Supplementing Medicare1

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Abstract
This analysis focuses on the elderly poor and the role of both private and public insurance in supplementing Medicare. Data from the National Medical Care Expenditure Survey are used to describe the approximately 5.9 million elderly persons with incomes of less than 125% of the poverty line. Those who depend exclusively on Medicare incur substantial out-of-pocket costs, although they use much fewer services than those who also have Medicaid or private insurance. If cost-sharing in Medicare is enacted, consideration should be given to exempting the low income elderly.

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