Premium
The Cost of an Additional Disability‐Free Life Year for Older Americans: 1992–2005
Author(s) -
Cai Liming
Publication year - 2013
Publication title -
health services research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.706
H-Index - 121
eISSN - 1475-6773
pISSN - 0017-9124
DOI - 10.1111/j.1475-6773.2012.01432.x
Subject(s) - life expectancy , demography , gerontology , years of potential life lost , panel data , life table , medicine , statistics , environmental health , mathematics , population , sociology
Objective To estimate the cost of an additional disability‐free life year for older Americans in 1992–2005. Data Source This study used 1992–2005 M edicare C urrent B eneficiary S urvey, a longitudinal survey of M edicare beneficiaries with a rotating panel design. Study Design This analysis used multistate life table model to estimate probabilities of transition among a discrete set of health states (nondisabled, disabled, and dead) for two panels of older Americans in 1992 and 2002. Health spending incurred between annual health interviews was estimated by a generalized linear mixed model. Health status, including death, was simulated for each member of the panel using these transition probabilities; the associated health spending was cross‐walked to the simulated health changes. Principal Findings Disability‐free life expectancy ( DFLE ) increased significantly more than life expectancy during the study period. Assuming that 50 percent of the gains in DFLE between 1992 and 2005 were attributable to increases in spending, the average discounted cost per additional disability‐free life year was $71,000. There were small differences between gender and racial/ethnic groups. Conclusions The cost of an additional disability‐free life year was substantially below previous estimates based on mortality trends alone.