Us Statistics: Expenditures on Durable Medical Equipment Grow

Based on a report published by the Centers for Medicare and Medicaid Services (CMS), consumer expenditures on durable medical equipment, which is approximately 70 percent ophthalmic products, accelerated 3.5 percent in 2001. This is the biggest growth in three years and generated a total of $18.4 billion in national expense. Looking at the per capita expense, durable medical equipment demonstrates consistent increase over time. In 2001, a person spent an average of $65 mostly on ophthalmic products, a small increase of 2.3 percent from 2000 but a whopping 282.4 percent and 54.8 percent growth rate from 1980 and 1990 respectively.

In a related story, the Bureau of Labor Statistics (BLS) reported that based on seasonally unadjusted numbers, the Consumer Price Index (CPI) for eyeglasses and eyecare services is showing steady growth. CPI is a measure of the average change overtime in prices paid by urban consumers for a market basket of consumer goods and services. The 2001 level of 155 reflects an increase of 3.2 percent from 2000, the biggest growth in nine years. This level is 54.5 percent higher from the base year 1986 and 31.7 percent more than in 1990. This means that a package of eyeglasses and eyecare worth $100 in 1986, costs $117 in 1990, $150 in 2000, and $155 in 2001. Notice that in 2001, the per capita consumption on durable medical equipment accelerated much faster than the CPI for eyeglasses and eye care (54.8 % vs. 31.7%) as compared to the 1990 numbers.