A new data note from the Kaiser Family Foundation examines Medicare per person spending, overall and by service, for beneficiaries under age 65 with disabilities compared to that for beneficiaries age 65 and older. Although Medicare is most commonly thought of as the federal health insurance program for seniors, since 1973 Medicare also has provided coverage to millions of people with permanent disabilities who are younger than 65, a group numbering 9.1 million people this year, or 16 percent of all Medicare beneficiaries.
The analysis shows that overall Medicare spending per person is higher for younger people on Medicare with disabilities than for seniors, but the difference is mainly due to higher Part D drug costs. Average spending for services covered under Parts A and B is only modestly higher for beneficiaries younger than age 65. The analysis also notes that among those over 65, Medicare per capita spending is nearly two times higher for beneficiaries who initially qualified for Medicare before age 65 due to disability or end-stage renal disease than seniors who qualified based on age alone.
Also available is an updated issue brief, Medicare’s Role for People Under Age 65 with Disabilities.
