Spending and service use among people with the fifteen most costly medical conditions, 1997

This study addresses the Institute of Medicine's recommendation that AHRQ use MEPS data to identify a set of priority conditions to inform efforts at improving quality of care. Using MEPS data we identify the fifteen most expensive conditions in the U.S. in 1997: chronic diseases such as heart disease, cancer, and diabetes, and acute conditions such as trauma, pneumonia, and infectious disease. Comorbidities were also associated with increased expenses. Type-of-service and source-of-payment distributions varied considerably across this set of conditions. Our findings highlight some of the challenges likely to be encountered in efforts to reform the current system.