Primary Care Services Account for a Small Share of Medicare Spending
Care provided by primary care practitioners accounts for a small fraction of total spending among Medicare beneficiaries, according to a new
Depending on whether narrow or expansive definitions of primary care are used, primary care spending represents 2.12% to 4.88% of total medical and prescription spending by Parts A, B and D of the Medicare program.
Researchers say the estimates are important because health system orientation toward primary care has been associated with higher quality, better outcomes and lower costs. States such as
"There is no consensus about the optimal share of medical spending that should be devoted to primary care," said Dr.
The RAND study is based on the medical care provided to more than 16 million fee-for-service Medicare beneficiaries during 2015. Information analyzed included outpatient care, hospital services and prescription medications.
The study's narrow definition of primary care practitioners includes family practice, internal medicine, pediatrics and general practice. The study's broad definition includes nurse practitioners, physician assistants, geriatric medicine and gynecology. The study also classified primary care services using a narrow definition (office visits and preventive care) and expansive definition (any service provided by a primary care practitioner).
Under all investigated definitions, primary care spending percentages were lower among Medicare beneficiaries who were older, black, native American, dually eligible for Medicare and Medicaid, and who had chronic medical conditions.
Primary care spending percentages varied by state. Under the narrow primary care practitioner and service definitions, the range spanned from 1.59% of medical spending in
States' primary care spending percentages were not associated with the number of primary care practitioners per capita.
The RAND study provides lower estimates of primary care spending than an earlier study that investigated younger, commercially insured patient populations. The primary care spending estimates in the RAND study also are lower than estimates made in other countries.
Support for the study was provide by the
Other authors of the study are
RAND Health Care promotes healthier societies by improving health care systems in


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