A new study published in JAMA Network Open reveals the significant impact of social determinants of health (SDOH) on health care expenditures across Medicare, Medicaid, and private insurance programs. The research, conducted between October 2023 and April 2024, analyzed data from 14,918 insured adults, shedding light on how non-clinical factors contribute to rising health care costs.
For Medicaid beneficiaries, educational attainment and social isolation emerged as key cost drivers. Those with a high school diploma or GED had $2,245 lower annual expenditures compared to those with less education. Conversely, individuals experiencing frequent social isolation faced $2,707 higher yearly health care costs.
Medicare expenditures were notably influenced by neighborhood quality and economic stability. Beneficiaries living in areas with fewer parks incurred nearly $6,000 more in annual costs. Those confident in their ability to cover unexpected expenses spent $3,744 less per year than their less financially secure counterparts.
Private insurance costs were affected by experiences of medical discrimination and debt collection. Individuals reporting medical discrimination had $2,600 higher annual costs, while those contacted by debt collectors faced an additional $2,033 in yearly expenditures.
These findings underscore the complex interplay between social factors and health care spending. As policymakers and insurers grapple with rising costs, addressing SDOH could be key to managing expenditures while promoting health equity. The study suggests that targeted interventions addressing education, social support, neighborhood resources, and economic stability could yield significant cost savings across all insurance types.
While recent initiatives by the Center for Medicare and Medicaid Innovation aim to address health disparities, experts call for ongoing refinement in policy design to ensure equitable benefits across diverse populations.
See: “Social Determinants of Health Linked to Higher Health Care Costs, Payer Expenditures” (October 23, 2024)
