What comes to mind when America's healthcare bill is mentioned? Usually physician services, hospital care, prescription drugs. While those areas of healthcare account for the bulk of U.S. health spending, another area of out-of-pocket spending mostly goes unnoticed.
In 2012, the nation racked up about $2.8 trillion in total healthcare expenditures. But that does not include an estimated $672 billion in “hidden costs,” according to a study from the Deloitte Center for Health Solutions.
For example, Deloitte analysts said Americans spent about $531 billion in 2012, or 79% of all hidden costs, on supervisory care. Supervisory care is when family members or friends take care of someone at home, but the cost of providing that care comes out of their own pockets. Analysts estimate only clinical services and hospital care represent a bigger portion of U.S. healthcare spending.
More than $60 billion was spent on nutrition items, such as vitamins and health supplements. People also shelled out billions in 2012 for complementary and alternative services like yoga and acupuncture, elderly home care, weight-reducing centers and healthcare publications, Deloitte said.
These so-called hidden costs have grown 5% every year since 2007, and Deloitte's report finds that older people generally incur higher hidden costs, mostly due to home care.
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