The composition of home health care expenditure growth

During the period 1980 to 1985, growth in the number of persons served by Medicare home health was the largest source of growth in Medicare home health expenditures. Population growth was in part responsible for the increase in beneficiaries using Medicare home health, but more important was growth in the number of persons served per 1000 elderly population. Cost per person served increased only moderately once input price changes are accounted for. Nevertheless, we recommend that cost-containment efforts focus on cost per visit and per case, because restrictions on persons served are likely to limit Medicare beneficiaries' access to needed, covered care.