Spending Dips on Healthcare for Medicare Seniors

A study published in Health Affairs estimated that reduced healthcare spending among Medicare beneficiaries 65 and older saved the average person nearly $3,000 annually by 2012, reports ScienceDaily . Across the entire senior populace, those savings amount to $120 billion, with 50 percent of those savings derived from Medicare. "This is the first time, to my knowledge, anyone has shown that some forms of medical care can save money," notes Harvard University Professor David Cutler. According to the study, even relatively modest investments in preventative healthcare yield considerable savings. The researchers determined substantial savings came from improvements in cardiovascular health, although Cutler acknowledges there could be further improvement. "Even now, only half the people with high cholesterol have their cholesterol brought down to guideline levels," he stresses. "And it's the same for people with high blood pressure, so there's still a way to go."