Characteristics and Medical Expenses of Adults 18 to 64-Years Old with Functional Limitations,

Combined Years 1997-2002

Gary Olin and Deborah D. Dougherty

Agency for Healthcare Research and Quality Working Paper No. 06002 March 2006

Suggested citation: Olin G, Dougherty DD. Characteristics and Medical Expenses of Adults 18 to

64-Years Old with Functional Limitations, Combined Years 1997-2002. Agency for Healthcare

Research and Quality Working Paper No. 06002, March 2006, http://gold.ahrq.gov.

AHRQ Working Papers provide preliminary analysis of substantive, technical, and methodological

issues. The papers have not undergone external peer review. They are distributed to share

valuable experience and research. Comments are welcome and should be directed to the

authors. The views expressed are those of the authors and no official endorsement by the

Agency for Healthcare Research and Quality or the Department of Health and Human Services is

intended or should be inferred.
Characteristics and Medical Expenses of Adults 18 to 64 Years-Old with Functional Limitations, 

Combined Years 1997-2002 

Deborah D. Dougherty, Ph.D., Westat and Gary Olin, Ph.D., AHRQ 

February 2005 

ABSTRACT 

This report provides information on the characteristics and medical expenses of adults with functional 

limitations in the US civilian noninstitutionalized population. It uses data from the Medical Expenditure 

Panel Survey (MEPS) for the period 1997–2002 to categorize adults by age group and degree of activity 

and functional limitation. Although only 8 percent of all adults have a functional limitation, the 

prevalence of disability is much higher among some segments of the population. The publicly insured, 

the poor, the unemployed, and divorced or separated adults, for example, have relatively large proportions 

of persons with functional limitations. Adults with severe disabilities tend to have much higher health 

care expenses than do individuals with no limitations. 

Gary Olin, Ph.D. 

Center for Financing, Access, and Cost Trends 

Agency for Healthcare Research and Quality 

540 Gaither Road 

Rockville, MD 20850 

E-mail: golin@ahrq.gov 

Deborah D. Dougherty, Ph.D. 

Westat 

1650 Research Blvd. 

Rockville, MD 20850 

E-mail: DOUGHED@WESTAT.com 

2
 
Introduction 

The household component of the Medical Expenditure Panel Survey (MEPS) contains a 

series of questions about the health status of persons in the sample. Responses to these questions 

can be used to identify persons who needed help performing activities related to personal care or 

living independently, as well as those who had limitations in work, housework, or school. This 

research finding contains information on the number and characteristics of adults in the civilian 

noninstitutionalized population who had activity and functional limitations. It also provides 

detail on their health insurance coverage and health care expenditures. 

The data are for adults who were in the civilian noninstitutionalized population and 

between 18 and 64 years of age during the period 1997-2002. Six years of data were combined 

to provide larger samples needed to make more precise estimates of the number and 

characteristics of adults with disabilities. As a result, the statistics discussed in the following 

sections are annual averages for the period 1997-2002. In addition, health care expenditures 

have been adjusted to 2002 dollars by using the Consumer Price Index for Medical Services to 

account for change in health care prices over the years 1997-2002. 

Tests of statistical significance were used to determine whether differences between 

sample statistics exist at specified levels of confidence or whether they occur by chance. 

Differences were tested using z-scores having asymptotic normal properties at the 0.05 level of 

significance. Unless otherwise noted, only statistically significant differences between estimates 

are discussed in the text. The technical appendix provides details concerning the sample design 

and the definitions of measures used in this report. 

3
 
 

Functional Limitations Defined 

Individuals ages 18 to 64 were assigned to one of four mutually exclusive hierarchical 

groups based on the severity of an individual’s disability. The group with the highest level of 

functional disability contains persons who received help or supervision in performing personal 

care tasks, such as bathing, dressing, or getting around the house. Individuals were included in 

this group if they had any activity of daily living (ADL) limitation, regardless of other 

limitations. The second group consists of persons having an instrumental activity of daily living 

(IADL) limitation but no ADL limitation. Anyone who needed assistance with activities such as 

using the telephone, paying bills, taking medications, preparing light meals, doing laundry, or 

going shopping was included in this category. The third group includes persons with physical 

limitations but no ADL or IADL limitations. Anyone limited in mobility, as measured by having 

difficulty walking or by having a work, housework, or school limitation, was included in this 

category. The fourth group includes all other adults in the sample. 

Prevalence of Functional Limitations 

Table 1 shows the average number of adults, stratified by degree of disability and 

socioeconomic characteristics, for the years 1997-2002. While a large portion of the population 

(92%) had no functional limitation, 6 percent had a physical limitation only, and 2 percent had an 

ADL and/or IADL limitation. The prevalence of disability varied, however, with age, race, 

education, and marital status. Older adults were significantly more likely than their younger 

4
 
 

counterparts to have some type of activity or functional limitation (16.2 percent vs. 6.0 percent), 

and almost 3 times as likely to have a physical limitation only (12.7 percent vs. 4.5 percent). 

Hispanics (5.9 percent) and other races (6.0 percent) were less likely than whites (8.8 percent) or 

blacks (10.3 percent) to have an activity or functional limitation. Physical limitations were more 

common among individuals with low educational attainment compared to those with 12 or more 

years of education. Ten percent of individuals with less than a high school education had a 

physical limitation compared to 5.8 percent who had 12 or more years of education. Physical 

limitations also varied by marital status, with divorced/separated person having the highest 

prevalence of activity and functional limitations (15.7 percent). About 12 percent of the 

divorced/separated group had a physical limitation, as opposed to only 5.9 percent of 

married/widowed and 4.8 percent of never married people. 

The largest differences in the prevalence of disability were observed for adults stratified 

by employment and insurance status. Over twenty-seven percent of the unemployed had an 

activity or physical limitation compared to 5 percent of those with full or part-year employment. 

The likelihood of having a functional limitation was notably higher among adults with public 

insurance (38.8 percent), compared to those with private or no insurance (5.4 percent and 7.1 

percent, respectively). In addition, the prevalence of disability among poor/near-poor (18.6 

percent) and low income (11.6 percent) individuals is higher compared to those with 

middle/high-incomes (6.1 percent). 

5
 
Functional Limitations, Insurance Status, and Age 

Table 2 shows the disability and insurance status of adults with functional limitations by 

age group. Insurance categories in the table include (1) private insurance, (2) public insurance, 

and (3) no insurance during the year. The predominant type of insurance coverage among all 

adults in the sample varied with the level of disability. Adults with any type of ADL limitation 

or an IADL limitation but no ADL limitation were about twice as likely to have public insurance 

(58.8 percent and 59.5 percent, respectively) than they were to have private insurance (32.9 

percent and 31.3 percent, respectively). Adults with physical limitations only, on the other hand, 

were more likely to have private insurance (53.2 percent) than public insurance (33.0 percent). 

Functional Limitations and Health Care Expenditures 

Table 3 shows, by age group and level of disability, annual average health care 

expenditures in 2002 dollars and the distribution of payments by source for the period 1997-

2002. The annual average health care expenditure for persons with at least one medical event 

was significantly less for individuals without a limitation than it was for persons with a 

limitation, regardless of age group. In the 50 to 64 year-old age group, for example, the average 

expenditure per person receiving medical care ranged from $3,819 for those with no limitations 

to $9,729 for those with a physical limitation only to $23,292 for those with an ADL limitation. 

Expenditures in the 18 to 49 year-old group also rose with the level of disability, although 

average expenditures per person receiving medical care were lower than those in the older group. 

6
 
The distribution of payments by source reflects, to a degree, the insurance coverage 

shown in Table 2 for persons in the 18 to 49 year-old group. Medicaid paid the largest share of 

expenses for persons with ADL limitations (39.0 percent), while private insurance paid the 

largest share for persons with a physical limitation (37.3 percent) or no limitations (58.3 

percent). Persons with an IADL limitation but no ADL limitation were equally reliant on 

Medicaid (31.2 percent) and private insurance (25.5 percent) to pay the largest shares of their 

expenses. 

In the 50 to 64 year-old group, private insurance paid the largest share of expenses 

regardless of level of disability. The share paid by private insurance ranged from 30.2 percent 

for persons with ADL limitations to 59.8 percent for persons without a limitation. In addition, 

Medicare became a more important payer for persons with an ADL limitation, while Medicaid 

was the third most important payer in the physical limitation and IADL categories. 

Persons with ADL limitations paid the smallest share of their health care expenditures 

out-of-pocket, 9.2 percent in the 18 to 49 year-old group and 13.5 percent in the 50 to 64 yearold group. At the other extreme, persons without a limitation paid the highest share out of 

pocket—25.5 percent in the 18 to 49 year-old group and 27.3 percent in the 50 to 64 year-old 

group. However, older persons in the ADL limitation group had the largest out of pocket 

payments per person receiving medical care because their average health care expenditure was 

high compared to other groups. For example, 50 to 64 year-olds with an ADL paid $3,144 out of 

pocket while those with no limitations paid $1,043 out of pocket. 

7
 
Conclusions 

This report provides information on the average number and characteristics of civilian 

noninstitutionalized adults with functional limitations during the period 1997-2002. Although a 

relatively small proportion (8 percent) these adults has a functional limitation, the prevalence of 

functional disability varies significantly among some segments of the population. It was high 

among individuals who were not employed during the year (27.3 percent), less educated (14.0 

percent), or in the lowest income bracket (18.6 percent). Persons who were divorced/separated were more 

likely to have a limitation (15.7 percent) than those who were married/widowed (7.3 percent) or never 

married (7.1 percent). More blacks (10.3 percent) and whites (8.8 percent) reported functional limitations 

than Hispanics (5.9 percent) or other racial groups (6.0 percent). 

Public insurance was the most common type of coverage for persons with an ADL (58.8 percent) 

or IADL (59.5 percent) limitation, while private insurance was most common among individuals with a 

physical limitation (53.2 percent) or no limitations (79.0 percent). In addition, insurance coverage 

sometimes varied by age group rather than degree of functional limitation. 

The annual average health care expenditure per person receiving medical care increased 

significantly with the level of disability in both age groups. For older adults, the average jumped from 

$3,819 for persons with no limitations to $23,292 for persons with ADL limitations. For younger adults, 

the average jumped from $2,153 for persons with no limitations to $17,121 for persons with ADL 

limitations. Moreover, adults with severe functional limitations in both age groups had large out-ofpocket payments even though their out-of-pocket share of total expenses was relatively small (9.2 percent 

for the 18 to 49 year-olds and 13.5 percent for the 50 to 64 year-olds). 

8
 
 

References 

Adler M. The disabled: their health care and health insurance. Washington, DC: The Office of Disability, 

Aging and Long-Term Care Policy. August 1990. http://aspe.hhs.gov/daltcp/reports/disabled.htm. 

Cohen J. Design and methods of the Medical Expenditure Panel Survey Household Component. 

Rockville (MD): Agency for Health Care Policy and Research; 1997. MEPS Methodology Report No. 1. 

AHCPR Pub. No. 97-0026. 

Cohen JW, Monheit AC, Beauregard KM, et al. The Medical Expenditure Panel Survey: a national health 

information resource. Inquiry 1996; 33:373-89. 

Cohen S. Sample design of the 1996 Medical Expenditure Panel Survey Household Component. 

Rockville (MD): Agency for Health Care Policy and Research; 1997. MEPS Methodology Report No. 2. 

AHCPR Pub. No. 97-0027. 

Cohen S. Design strategies and innovations in the Medical Expenditure Panel Survey. Medical Care 

2003; 41(7): 5-12. 

NBER Website. Friday, February 25, 2005. “Public Disability Insurance and Private Health Insurance." 

<http://www.nber.org/digest/jan03/w9148.html>. 

Rhoades JA. The uninsured in America—2002. Rockville (MD): Agency for Healthcare Research and 

Policy; 2002. MEPS Statistical Brief No. 19. AHRQ Pub. No. 19. 

Stapleton DC and Burkhauser RV. 2003. The Decline in Employment of People with Disabilities: A 

Policy Puzzle. Kalamazoo (MI): W.E. Upjohn Institute for Employment Research. 

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Table 1 Distribution of U.S. civilian noninstitutionalized adults by disability status and selected 

characteristics: MEPS, 1997-2002 

Limitation distributiona
 

Characteristic Population No Physical IADL Any ADL 

(in 1,000s) limits limits limits limits 

Total

 b	 170,805 156,380 11,060 1,885 1,480 

Age in years Prevalence of disability 

 18 to 49	 128,906 94.0 4.5 .9 .6 

 50 to 64	 41,899 83.8 12.7 1.9 1.6 

Ethnicity/Race 

White, single race 121,679 91.2 6.8 1.1 .9 

 Black, single race 20,498 89.7 7.7 1.4 1.2 

 Hispanic 20,501 94.0 4.4 .8 .7 

 All other 8,126 94.0 4.3 .9 .8 

Gender

 Male 83,884 92.3 5.9 1.0 .8

 Female	 86,921 90.8 7.0 1.2 .9 

Educationc

 Less than 12 years 27,090 86.0 10.0 2.3 1.7

 12 or more years 142,986 92.6 5.8 .9 .7 

Marital statusc

 Married/Widowed 99,818 92.6 5.9 .7 .7

 Divorced/Separated 23,494 84.3 12.2 2.2 1.3

 Never married 47,492 92.9 4.8 1.4 .9
 

Incomed

 Poor/Near-poor 23,549 81.4 13.4 3.1 2.1

 Low income 19,898 88.4 8.3 2.0 1.4

 Middle/High-income 127,358 93.9 4.9 .6 .6 

Region

 South 60,186 90.9 7.1 1.1 .9

 Midwest/Northeast 71,754 92.3 5.8 1.1 .8
 

West 38,864 91.3 6.8 1.1 .9
 

Employmentc

 Full/Part year 144,099 95.0 4.2 .4 .3

 Not employed 26,666 72.8 18.7 4.7 3.9 

Type of insurancee

 Private 130,501 94.6 4.5 .5 .4 

 Public 14,556 61.2 25.1 7.7 6.0

 No insurance 25,747 92.9 5.9 .7 .5
 

a Any ADL: Having activity of daily living limitations, regardless of other limitations. IADL: Having instrumental activity of daily living 

limitations but no ADLs. Physical limitation: Having no ADL or IADL limitations; mobility limitations only. No limitation: Having no 

activity or mobility limitations. b

 Individuals with a missing on limitation were not included in the population count (n=257). c

 Total does not add to population; missings were not included in the count. 

d

 Poor refers to incomes below the Federal poverty line; near-poor, over the poverty line through 125 percent of the poverty line; low income, 

over 125 percent through 200 percent of the poverty line; middle income, over 200 percent to 400 percent of the poverty line; and high income, 

over 400 percent of the poverty line. e See Technical Appendix for definitions of insurance coverage, including treatment of individuals with private and public insurance. 

Note: Percents may not add to 100 due to rounding. 

Source: Center for Financing, Access, and Cost Trends (CFACT), Agency for Healthcare Research and Quality: Medical Expenditure Panel 

Survey, 1997 to 2002.
 

10
 
 

 

 

 

 

 

 

 

 

 

 

Table 2 Disability and insurance status of adults with functional limitations in the U.S. civilian 

noninstitutionalized population: MEPS, 1997-2002 

Characteristic Population Age group 

(in 1,000s) 18 to 49 50 to 64 

Total a 170,805 128,906 41,899 

Limitationb

/Insurancec 

Number with no limitation 156,380 121,286 35,095 

 Percent private ins. 79.0 77.3 84.8 

 Percent public ins. 5.7 6.0 4.5 

 Percent no insurance 15.3 16.7 10.7 

Number with physical limitation 11,060 5,730 5,330 

 Percent private ins. 53.2 52.7 53.8 

 Percent public ins. 33.0 31.9 34.2 

 Percent no insurance 13.8 15.5 12.0
 

Number with IADL 1,885 1,093 792 

 Percent private ins. 31.3 32.4 29.9 

 Percent public ins. 59.5 57.5 62.3 

 Percent no insurance 9.1 — — 

Number with any ADL 1,480 798 682 

 Percent private ins. 32.9 33.3 32.6 

 Percent public ins. 58.8 60.3 57.1 

 Percent no insurance 8.3 — — 

a

 Individuals with a missing on limitation were not included in the population count (n=257). b Any ADL: Having activity of daily living limitations, regardless of other limitations. IADL: Having instrumental activity of 

daily living limitations but no ADLs. Physical limitation: Having no ADL or IADL limitations; mobility limitations only. No 

limitation: Having no activity or mobility limitations. 

c

 See Technical Appendix for definitions of insurance categories, including treatment of individuals with private and public 

insurance. 

Note: Percents may not add to 100 due to rounding. 

— Less than 100 sample cases. 

Source: Center for Financing, Access, and Cost Trends (CFACT), Agency for Healthcare Research and Quality: Medical 

Expenditure Panel Survey, 1997 to 2002. 

11
 
Table 3 Expenditures and sources of payment by disability status and age group for adults with functional limitatio

noninstitutionalized population: MEPS, 1997-2002 

Per Person with an Percent distribution of total 

Population Total expense Event (in 1,000s) ($ in millions) Median Mean Self Medicare M

Totala 139,683 46,3721 1146 3320 23.5 4.8 

Age in Years/Limitationb 

All 18 to 49 year-olds 102,059 268,196 883 2,628 23.2 3.5 

No limits 94,909 204,343 816 2,153 25.5 .8 

Physical limits 5,329 37,963 3,115 7,124 18.4 11.1 IADL only 1,041 12,535 4,779 12,036 14.8 10.2 

Any ADL 780 13,355 6,407 17,121 9.2 15.7 

All 50 to 64 year-olds 37,623 195,525 2,198 5,197 24.0 6.7 

No limits 31,037 118,518 1,834 3,819 27.3 2.0 

Physical limits 5,148 50,083 5,293 9,729 20.6 10.5 

IADL only 763 11,182 7,489 14,659 19.4 16.4 

Any ADL 675 15,742 12,248 23,292 13.5 22.4 

a Only individuals who had a medical event were included in the total. Individuals who had eyeglass expenditures were not included in this table. b Any ADL: Having activity of daily living limitations, regardless of other limitations. IADL only: Having only instrumental activity of daily living limitations. Physic

IADL limitations; mobility limitations only. No limitation: Having no activity or mobility limitations. 

Note: Percents may not add to 100 due to rounding. Source: Center for Financing, Access, and Cost Trends (CFACT), Agency for Healthcare Research and Quality: Medical Expenditure Panel Survey, 1997 to 2002. 

12
Technical Appendix 

The data in this report were obtained from the full-year consolidated PUF’s of the 1997-2002 

MEPS-HC (HC-020, HC-028, HC-038, HC-050, HC-060, and HC-070). MEPS is cosponsored by the 

Agency for Healthcare Research and Quality (AHRQ) and the National Center for Health Statistics 

(NCHS) . The MEPS HC collects detailed data on demographic characteristics, health conditions, health 

status, use of medical care services, charges and payments for those services, access to care, health 

insurance coverage, income, and employment of the U.S. civilian noninstitutionalized population. In 

other components of MEPS, data are collected on the use, charges, and payments reported by providers 

(Medical Provider Component) and the supply side of the insurance market (Insurance Component). 

Survey Design 

The sample for each year of the MEPS HC was selected from respondents to the prior year’s 

National Health Interview Survey (NHIS), which was conducted by NCHS. NHIS provides a nationally 

representative sample of the U.S. civilian noninstitutionalized population and reflects an oversampling of 

Hispanics and blacks. The MEPS HC collects data through an overlapping panel design. In this design, 

data are collected through a precontact interview that is followed by a series of five rounds of interviews 

over 2 years. Interviews are conducted with one member of each family, who reports on the health care 

experiences of the entire family. Two calendar years of medical expenditure and utilization data are 

collected from each household and captured using computer-assisted personal interviewing (CAPI). This 

series of data collection rounds is launched again each subsequent year on a new sample of households to 

provide continuous and current estimates of health care expenditures. 

13
 
 

 

Health Insurance Status 

Individuals between the ages of 18 and 64 (inclusive) were classified into the following insurance 

categories based on household responses to health insurance status questions administered during all 

rounds of the MEPS HC. The household responses were for each month, thus a record of a respondent’s 

insurance coverage across 12 months was established. If a respondent was covered by two types of 

insurance during the year, the most likely primary payer was used to determine the insurance category. 

For example, individuals having Medicare and private insurance were placed in the public insurance 

group because Medicare is typically the primary payer in these cases. The categories are mutually 

exclusive. 

•	 Private Insurance—Individuals who were insured by private coverage at some point during the 

calendar year. Private health insurance was defined as insurance that provides coverage for 

hospital and physician care. Insurance that provides coverage for a single service only, such as 

dental or vision coverage, was not counted. If a person had both Medicaid and private health 

insurance, he or she was included in the private insurance group. For the purpose of this analysis, 

TRICARE/CHAMPVA coverage is combined with private coverage. 

–TRICARE covers retired members of the Uniformed Services and the spouses and 

children of active-duty, retired, and deceased members. 

–CHAMPVA covers spouses and children of veterans who died from a service-connected 

disability or are permanently disabled and not eligible for CHAMPUS or Medicare. 

•	 Public Insurance—Individuals who were insured by public coverage at some point during the 

calendar year. Individuals were considered to have public coverage if they were covered only by 

Medicaid, Medicare, or some other public hospital/physician coverage or if they were covered by 

both Medicare and private insurance. 

14
 
•	 No Insurance—No insurance includes those individualswho were not insured during all of the 

calendar year; single service or specific program plans are not classified as insurance for purposes 

of this report. 

 Functional Limitations 

Four mutually exclusive categories of functional limitation were used in this research findings: 

Any ADL, having a need for help with any activity of daily living, regardless of other limitations 

(ADLHLP); IADL, having an instrumental activity of daily living limitation (IADLHP), but no ADL; 

Physical Limitation, having only a limitation in mobility, measured by having difficulty walking or 

having any activity limitations, such as going to school or work (WLKLIM and ACTLIM); No 

Limitation, having no activity or mobility limitations. 

ADLs 

Limitations in the ability to perform activities of daily living were assessed by asking whether 

anyone in the family received help or supervision with personal care, such as bathing, dressing, or getting 

around the house. Individuals were included in this category if they had an ADL, regardless of whether 

or not they had an IADL or physical limitation. 

IADLs 

Limitations in the ability to perform instrumental activities of daily living were assessed by 

asking whether anyone in the family received help or supervision using the telephone, paying bills, taking 

medications, preparing light meals, doing laundry, or going shopping. If the respondent indicated that 

someone in the household received help with any of these activities, a followup question was asked to 

15
 
determine which household member received help. Individuals were included in this category if they had 

an IADL; members of this category did not have an ADL but could have a physical limitation. 

Population Characteristics 

Age 

The respondent was asked to report the age of each family member as of the date of the interview. 

The age as of December 31 of the data year, or the last known age if this value was invalid, was used for 

the analysis. 

Race/Ethnicity 

Classification by race and ethnicity was based on information reported for each household 

member. Respondents were asked if the race of the sample person was best described as 

American Indian, Alaska Native, Asian or Pacific Islander, black, white, or other. Respondents 

were also asked if the sample person’s main national origin or ancestry was Puerto Rican; Cuban; 

Mexican, Mexicano, Mexican American, or Chicano; other Latin American; or other Spanish. 

All persons who claimed main national origin or ancestry in one of these Hispanic groups, 

regardless of racial background, were classified as Hispanic. Since the Hispanic grouping can 

include black Hispanic, white Hispanic, and other Hispanic, the race categories of black, white, 

and other do not include Hispanic. For 2002, the other category includes some mixed race. 

Marital Status 

Marital status was constructed from information available at three points in time during the data 

year: the interview dates for the first two rounds of the data year and December 31 of the applicable data 

16
 
year. The marital status as of December 31 of the data year, or the last known marital status if this value 

was invalid, was used for the analysis. 

Employment Status 

Employment status was constructed from information available at three points in time during the 

data year: the interview dates for the round of MEPS and December 31 of each data year. This variable 

summarizes the rounds to determine a full year work status. For example, if someone was employed in 

rounds 1 and 2 but not employed in Round 3, they were coded as “2=part year”. A person was considered 

employed if he or she was currently working, had a job to return to, or a job during the round. 

Income 

Each sample person was classified according to the total data year income of his or her family. 

Within a household, all individuals related by blood, marriage, or adoption were considered to be family. 

Personal income from all family members was summed to create family income. Income included 

possible wages, salaries, bonuses, tips, and commissions; business and farm gains and losses; 

unemployment and Worker’s Compensation; interest and dividends; alimony, child support, and other 

private cash transfers; private pensions, individual retirement account (IRA) withdrawals, Social Security, 

and Department of Veterans Affairs payments; Supplemental Security Income and cash welfare payments 

from public assistance, Temporary Aid to Needy Families, and Aid to Dependent Children; gains or 

losses from estates, trusts, partnerships, S corporations, rent, and royalties; and small amount of “other” 

income.\ 

Poverty status is the ratio of family income to the data year’s Federal poverty thresholds, which 

control for family size and age of the head of family. Income categories are defined as follows: 

• Poor—Incomes less than or equal to the poverty line. 

• Near poor—Incomes over the poverty line through 125 percent of the poverty line. 

• Low income—Incomes over 125 percent through 200 percent of the poverty line. 

17
 
• Middle income—Incomes over 200 percent through 400 percent of the poverty line. 

• High income—Incomes over 400 percent of the poverty line. 

Education 

Respondents were asked to report the highest grade or year of schooling ever completed as of the 

date of the Round 1 or first interview that person was in the survey. 

Sample Design and Accuracy of Estimates 

The sample selected for each data year of MEPS, a subsample of the prior year NHIS, was 

designed to produce national estimates that are representative of the civilian noninstitutionalized 

population of the United States. 

The statistics presented in this report are affected by both sampling error and sources of 

nonsampling error, which include nonresponse bias, respondent reporting errors, and interviewer effects. 

For a detailed description of the MEPS survey design, the adopted sample design, and methods used to 

minimize sources of nonsampling error, see J. Cohen (1997), S. Cohen (1997), and Cohen, Monheit, 

Beauregard, et al. (1996). 

The MEPS person-level estimation weights include nonresponse adjustments and poststratificaton 

adjustments to population totals obtained from the March Current Population Surveys (CPS) to reflect 

Census Bureau estimated population distributions as of December of the data year. The person-level 

poststratification incorporated the following variables: income, marital status, race/ethnicity, sex, and age. 

The weighting process also included poststratification to population totals obtained for the data year of 

the Medicare Current Beneficiary Survey (MCBS) for the number of deaths among Medicare 

beneficiaries in the data year. 

18
 
SUDAAN was used to estimate standard errors because MEPS has a complex survey design. 

Tests of statistical significance were used to determine whether the differences between populations exist 

at specified levels of confidence or whether they occurred by chance. Differences were tested using zscores having asymptotic normal properties at the 0.05 level of significance. Unless otherwise noted, 

only statistically significant differences between estimates are discussed in the text. 

Rounding 

Estimates presented in the tables were rounded to the nearest 0.1 percent. Standard errors, 

present in Tables A to C, were rounded to the nearest 0.01. Population estimates in Tables 1 to 3 were 

rounded to the nearest thousand. Therefore, some of the estimates presented in the tables for population 

totals of subgroups will not add exactly to the overall estimated population total. 

Pooling Data Years 

The “MEPS 1996–2002 Pooled Estimation Linkage File” (HC-036) was used to perform the 

pooling of data years 1997 through 2002. This file contains pooled variance stratum (STRA9602) and 

PSU (PSU9602) variables that were used in lieu of the variance variables contained on the annual files. 

Using the year-specific “Full Year Consolidated Data Files” for 1997–2002, a separate analytic file was 

created for each data year. The concatenated files were sorted by DUPERSID and merged with the 

linkage file. The final person weights contained on the annual files were used for the weighted analysis 

and the outcomes divided by 6, the total number of years being pooled. Further documentation about 

pooling data years can be found on the MEPS web site (www.ahrq.meps.gov). 

19
 
Comparisons with Other Data Sources 

Because of methodological differences, caution should be used when comparing these data with 

data from other sources. Particularly with questions about limitations in activities, a range of results is 

frequently found among surveys based on question wording, the sequencing of questions, the placement 

of questions, and whether or not the respondent was a proxy for the person with the limitation. 

Benchmarking activities indicate that the proportions with ADLs and IADLs are very similar to those 

reported in the NHIS. However, the estimates of limitations in work, school, or housework activities are 

more conservative than those found in NHIS. 

20
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table A: Standard errors for the distribution of U.S. civilian noninstitutionalized adults by 

disability status and selected characteristics: MEPS, 1997-2002 

(corresponds to Table 1) 

Limitation distributiona 

Characteristic Population No Physical IADL Any ADL 

 (in 1,000s) limits limits limits limits 

Total b 170,805 156,380 11,060 1,885 1,480 

Age in years Standard errors 

 18 to 49 .2 .2 .1 .0 

 50 to 64 .4 .3 .1 .1 

Ethnicity/Race 

White, single race .2 .2 .1 .0 

 Black, single race .5 .4 .1 .1 

 Hispanic .3 .3 .1 .1 

All other .5 .4 .2 .2 

Gender

 Male .2 .2 .1 .1 

 Female .2 .2 .1 .1 

Educationc

 Less than 12 years .5 .4 .2 .1 

 12 or more years .2 .2 .0 .0 

Marital Statusc

 Married/Widowed .2 .2 .0 .0 

 Divorced/Separated .5 .4 .2 .1 

 Never married .3 .2 .1 .1 

Incomed

 Poor/Near-Poor .6 .5 .2 .2 

 Low Income .4 .3 .2 .1 

 Middle/High-income .2 .1 .0 .0 

Region

 South .4 .3 .1 .1 

 Midwest/Northeast .3 .2 .1 .1 

West .4 .4 .1 .1 

Employmentc

 Full/Part year .1 .1 .0 .0

 Not employed .7 .5 .2 .2 

Type of insurancee

 Private .1 .1 .0 .0 

 Public .9 .7 .4 .4 

 No insurance .3 .3 .1 .1 

a Any ADL: Having activity of daily living limitations, regardless of other limitations. IADL: Having instrumental activity of daily living 

limitations but no ADLs. Physical limitation: Having no ADL or IADL limitations; mobility limitations only. No limitation: Having no 

activity or mobility limitations. 

b Individuals with a missing on limitation were not included in the population count (n=257).
 c

 Total does not add to population; missings were not included in the count.
 d

 Poor refers to incomes below the Federal poverty line; near-poor, over the poverty line through 125 percent of the poverty line; low income,
 

over 125 percent through 200 percent of the poverty line; middle income, over 200 percent to 400 percent of the poverty line; and high 

income, over 400 percent of the poverty line. e

 See Technical Appendix for definitions of insurance categories, including treatment of individuals with private and public insurance. 

Source: Center for Financing, Access, and Cost Trends (CFACT), Agency for Healthcare Research and Quality: Medical Expenditure Panel 

Survey, 1997 to 2002. 

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Table B Standard errors for the disability and insurance status of adults with functional 

limitations in the U.S. civilian noninstitutionalized population: MEPS, 1997-2002 

(corresponds to Table 2) 

Characteristic Population Age group 

(in 1,000s) 18 to 49 50 to 64 

Total a	 170,805 128,906 41,899 

Limitationb

/Insurancec 

Number with no limitation 

Percent private ins. .5 .5 .5 

Percent public ins. .2 .2 .2 

 Percent no insurance .4 .4 .4 

Number with physical limitation 

Percent private ins. 1.0 1.4 1.2 

Percent public ins. .9 1.3 1.1 

 Percent no insurance .6 .9 .7 

Number with IADL

Percent private ins. 1.8 2.3 2.6 

 Percent public ins. 1.9 2.6 2.7

Percent no insurance 1.1 — — 

Number with any ADL 

Percent private ins. 1.8 2.6 2.6 

 Percent public ins. 2.0 2.8 2.9

Percent no insurance 1.1 — — 

a

 Individuals with a missing on limitation were not included in the population count (n=257). 

b Any ADL: Having activity of daily living limitations, regardless of other limitations. IADL: Having instrumental activity of daily living 

limitations but no ADLs. Physical limitation: Having no ADL or IADL limitations; mobility limitations only. No limitation: Having no 

activity or mobility limitations. c

 No insurance refers to individuals who were uninsured the entire year. 

— Less than 100 sample cases. 

Source: Center for Financing, Access, and Cost Trends (CFACT), Agency for Healthcare Research and Quality: Medical Expenditure Panel 

Survey, 1997 to 2002.
 

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Table C Standard errors of expenditures and sources of payment by disability status and age group for a

limitations in the U.S. civilian noninstitutionalized population: MEPS, 1997-2002 (corresponds to Table 3) 

Total Per Person with an Percent distribution of tot

Population expense event source o(in 1,000s) ($ in millions) Median Mean Self Medicare Medicaid 

Totala 6,580 2,1451 15 42 .3 .3 .4 

Age in years/Limitationb 

All 18 to 49 year-olds 4,887 12,979 12 40 .4 .5 .6 

No limits 4,546 9,587 10 31 .4 .2 .3 Physical limits 312 2,611 137 260 6.9 1.6 1.4 IADL only 79 1,520 515 1,100 1.3 2.7 4.5 

Any ADL 65 1,547 960 1,646 1.3 4.5 4.3 

All 50 to 64 year-olds 1,768 9,285 36 94 .4 .4 .4 

No limits 1,500 5,760 31 69 .5 .3 .3 Physical limits 252 3,026 171 401 .9 .9 1.0 IADL only 58 1,117 545 1,087 1.8 2.4 2.6 

Any ADL 49 1,568 1,113 1,678 1.4 3.2 2.1 

a Only individuals who had a medical event were included in the total. Individuals who had only eyeglass expenditures were not included in this tablb Any ADL: Having activity of daily living limitations, regardless of other limitations. IADL only: Having only instrumental activity of daily living l

limitation: Having no ADL or IADL limitations; mobility limitations only. No limitation: Having no activity or mobility limitations. 

Source: Center for Financing, Access, and Cost Trends(CFACT), Agency for Healthcare Research and Quality: Medical Expenditure Panel Survey, 

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