Health Care Costs Following COVID-19 Hospitalization Prior to Vaccine Availability

J Am Board Fam Med. 2024 Jan 5;36(6):883-891. doi: 10.3122/jabfm.2023.230069R1.

Abstract

Background: Postacute sequelae of coronavirus (PASC) disease of 2019 (COVID-19) include morbidity and mortality, but little is known of the impact on medical expenditures. This study measures patients' health care costs after COVID hospitalization before vaccinations.

Methods: The Merative MarketScan database is used to track trends in medical expenditures for commercially insured patients hospitalized for COVID-19 (case subjects) compared with COVID-19 patients not hospitalized (control subjects) using a propensity score matching model. Medical expenditures were estimated from 30-, 60-, and 120-day clean periods after an initial COVID-19 encounter through the end of 2020.

Results: Average total medical expenditures were 96% higher for individuals hospitalized for COVID-19 starting 30 days after initial COVID-19 encounter and almost 70% higher 120 days after based on the propensity score matching. The average spending differential was $11,242 30 days after and $4959 120 days after. This effect is highest for inpatient admissions and services 60 days after at $56,862 and lowest among pharmaceuticals 120 days after at $329. The magnitude of the difference is greater for those with hypertension or diabetes where total expenditures is $14,958 30 days after, and $5962 120 days after compared with those without these chronic conditions.

Discussion: The results suggest both health and economic implications for COVID-19 hospitalization and supports the use of vaccinations to help mitigate these implications. PASC includes increased health care costs for hospitalized patients, particularly for those with chronic conditions. Preventing COVID-19 hospitalization has economic value in terms of reduced medical spending in addition to health benefits associated with reduced morbidity and mortality.

Keywords: COVID-19; Health Care Economics; Health Expenditures; Hospitalization; Pandemics; Propensity Score; Vaccination.

MeSH terms

  • COVID-19* / epidemiology
  • COVID-19* / prevention & control
  • Chronic Disease
  • Health Care Costs
  • Health Expenditures
  • Hospitalization
  • Humans
  • Retrospective Studies
  • Vaccines*

Substances

  • Vaccines