HOW HEALTH DISPARITIES DRIVE MEDICARE SPENDING

Disparities in asthma and diabetes care cost $18 billion annually. Through new payment models, CMS is attempting to distribute resources in high-need areas to mitigate unnecessary spending and improve health outcomes.

Diabetes Asthma
Health disparity Black adults are 60% more likely than white adults to be diagnosed with diabetes and are two to three times more likely to have complications. The asthma rate for those living below the federal poverty level (FPL) is 11% compared to about 7% for those living more than two times FPL.
Annual cost of disease $327 billion $56 billion
% of cost associated with disparity 4.8% 4.3%
Unnecessary spending associated with disparity $15.6 billion $2.4 billion