Contribution of Preventable Acute Care Spending to Total Spending for High-Cost Medicare Patients

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Abstract
High and increasing health care costs are arguably the single biggest threat to the long-term fiscal solvency of federal and state governments in the United States. One compelling strategy for cost containment is focusing on the small proportion of patients in the Medicare programs who account for the vast majority of health care spending. We know from prior work that Medicare spending is highly concentrated: 10% of the Medicare population accounts for more than half of the costs to the program.1

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