A study has found vast differences from one city to the next in the amount spent on health care for Americans with employer-sponsored health plans.
The Healthcare business of Thomson Reuters conducted and funded the study, which assessed the use and cost of health care services for 23.5 million Americans in 382 metropolitan statistical areas (MSA) in 2009.
"Studying these geographic variations can help us identify locations where health care costs are less, yet the quality of care and outcomes are not compromised. Understanding where, why, and how medical care costs less can provide solutions to control our nation's health care spending," said Ray Fabius, M.D., chief medical officer for the Healthcare business of Thomson Reuters and one of the study's authors.
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[See also: 5 least expensive health care markets]
Research dating back to the 1970s has documented geographic variations in the cost and use of health care among Medicare recipients. The Thomson Reuters study is the first of its kind to assess the health care experience of more than 20 million people with employer-sponsored insurance. It found substantial spending disparities similar to those seen in the Medicare population – but with different underlying patterns.
For example, previous research has identified McAllen, Texas, as having the highest Medicare spending in the nation, but the Thomson Reuters study found McAllen to be among the 10 lowest spending communities for individuals with employer-sponsored health insurance.
Spending patterns also varied significantly by age group and type of expenditure. In Ocala, Fla., for example, health care spending for children was 45 percent below the national average and spending for adults (age 18-64) was 18 percent above average.
Meanwhile, locations with high inpatient costs were likely to also have high outpatient costs, debunking the theory that high outpatient spending tends to limit or offset the use of inpatient services.
"There are some unexpected findings here. The bottom line is that it's risky to set policy based solely on Medicare evidence, because we're seeing a different picture when we look at other patient populations," said Bill Marder, PhD., senior vice president for research services at Thomson Reuters and lead author of the paper. "We clearly need to do more in depth research to better understand how these complex spending variations translate into variations in value for patients."
Here are the 5 highest-spending regions in the U.S. for people with employer-sponsored health insurance along with their annual health care costs per person:
1. Anderson, Ind.
Annual health care costs per person: $7,231
2. Punta Gorda, Fla.
Annual health care costs per person: $7,168
(AP Photo/Chris O'Meara)
3. Racine, Wis.
Annual health care costs per person: $6,528
(AP Photo/Journal Times, Mark Hertzberg)
4. Naples-Marco Island, Fla.
Annual health care costs per person: $6,312
(AP Photo/Julie Jacobson)
5. Ocean City, N.J.
Annual health care costs per person: $6,128
(AP photo/Mel Evans, File)
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