CHART G. HEALTH CARE EXPENDITURES PER AGED PERSON, BY SOURCE OF FUNDS
SOURCE: "Personal Health Care Expenditures of the
Aged and Nonaged," by Dorothy P. Rice, Arne
Anderson, and Barbara S. Cooper, Social Security
Bulletin, August 1968, table 2, page 21.
TECHNICAL NOTE: Personal health care expenditures
include all expenditures for health and medical care
services received by individuals. Excluded are
expenditures for medical-facilities construction,
medical research, public health activities not of
direct benefit to individuals (that is, disease pre-
vention and control), and some expenses of philan-
thropic organizations. The data also exclude the
net cost of insurance (the difference between health
insurance premiums and benefits paid) as well as
administrative expenses of several public programs.
In classifying health care expenditures by source
of funds, the Social Security Administration
attributes to public sources all expenditures made
through public programs. Thus, all expenditures
under Medicare are classified as "public," even
though the aged individual pays a monthly premium
for Part B Medical Insurance.
The category "other professional services"
includes expenditures for dentists' services and other
professional services. The category "other health
services" includes expenditures for eyeglasses and
appliances and other health services.
THE FINDINGS: The average health care expenditure
per aged person in fiscal year 1967 was $486, nearly
15 percent more than in fiscal year 1966. Primarily
as the result of Medicare, the portion financed
from public funds rose markedly in the first year
of operation-from $130 per aged person in fiscal
year 1966 to $286 in fiscal year 1967. There was a
less sharp drop-from $294 per capita to $200-in
expenditures classified as from private sources.
(See table 8 and discussion, pp. 20-22.)