On April 4, the Kaiser Family Foundation released a brief that outlines Medicare beneficiaries’ out-of-pocket (OOP) expenses between 1997 and 2006, noting the characteristics of beneficiaries with the highest financial burden relative to their income.  KFF determined that median OOP spending as a share of income rose from 12 percent to 16 percent during that period, and projects that it will exceed 25 percent in 2020. 

From the report:

Medicare offers substantial health security and financial protection to 48 million seniors and younger people with disabilities. However, premiums, relatively high cost-sharing requirements, and gaps in the benefit package can result in beneficiaries spending a substantial share of their income on health expenses. Based on analysis of the Medicare
Current Beneficiary Survey, this data brief examines the financial burden of out-of-pocket health expenses among Medicare beneficiaries between 1997 and 2006, and the characteristics of beneficiaries with the greatest financial burden relative to their income.

Full report: How Much "Skin in the Game" is Enough? The Financial Burden of Health Spending for People on Medicare (PDF | 780.49KB)

Kaiser Family Foundation.  (2011).  How much "skin in the game" is enough?  The financial burden of health spending for people on Medicare.