The Use, Cost, and Economic Burden of Nursing-Home Care in 1985

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Abstract
Nursing-home expenses constitute one of the greatest financial risks for elderly Americans. This study, based largely on the 1985 National Nursing-Home Survey, examines the economic burden posed by nursing-home care during 1985. The results indicate that nursing-home expenses constitute by far the largest out-of-pocket burden of all health care services. It was found that nursing-home care expenses constituted 82.5% of the out-of-pocket expenditures among the elderly who incurred $3,000 or more in such expenditures during 1985. Surprisingly, though, it was found that the frequency in which those in nursing homes “spend-down” their assets and income, thus becoming eligible for Medicaid, is much lower than others have calculated. This may be due in part to the fact that a large proportion of the elderly are already eligible for Medicaid when they begin their nursing-home stays.

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