The aim of this study was to estimate the direct medical costs of chronic o
bstructive pulmonary disease (COPD) in the United States using a public-pay
or perspective. Cost estimates were derived separately for 10 components of
care using national survey databases and valued using Medicare and Medicai
d reimbursement rates. COPD affects 15 million people in the U.S.A. and the
total annual U.S. payment for care is $6.6 billion. Approximately one-thir
d ($2.3 billion) is due to the cost of long-term oxygen therapy, one-quarte
r is attributed to hospitalizations and inpatient physician services ($1.9
billion), and one-seventh ($942 million) is due to nursing home stays. Othe
r annual costs are outpatient physician visits ($480 million), prescription
medications ($462 million), home healthcare ($309 million), emergency depa
rtment visits ($148 million), outpatient diagnostic procedures ($55 million
) and hospice care ($28 million). The cost of COPD is therefore considerabl
e. The significant expenditure for long-term oxygen therapy indicates that
disease severity is a major driver of costs. However, the cost of hospitali
zations, nursing home stays, emergency department and physician visits are
not insignificant.