Medicare beneficiaries' costs of care in the last year of life

This paper profiles Medicare beneficiaries' costs for care in the last year of life. About one-quarter of Medicare outlays are for the last year of li fe, unchanged from twenty years ago. Costs reflect care for multiple severe illnesses typically present near death. Thirty-eight percent of beneficiar ies have some nursing home stay in the year of their death; hospice is now used by half of Medicare cancer decedents and 19 percent of Medicare decede nts overall. African Americans have much higher end-of-life costs than othe rs have, an unexpected finding in light of their generally lower health car e spending.