PEEP Comparison of aggregate expenditures for health care: Consumer Expenditure (CE) Survey and National

Health Expenditures, 1992-95

] Aggregate consumer expenditures Ratio of CE survey
| Consumer Expenditure Survey to
Expenditure categories | (in bitions) National Health Expenditures

1992 | 1993 | 1994 | 1995 | 082 T4003 | 1894 1995
Health care, total’. sexe | sos2 | soa7 | se9.0 oss | o6s | 064 | 058
Medical commodities, total | sre | 402 | 377 | 372 72 7a | 68 65
Drugs and supplies . “| p02 | a26 | 309 | 304 ‘7 | 70 ‘65 60
Medical equipment 1) 74 | 76 64 64 102 | 1.02 | ‘ai | 78
Medical services, total s20 | 550 | 870 | 529 | 58 60 se
Professional services | aa1 | 466 | 448 | 436 36 58 ‘4 | ist
Hospital care... | 89 | 84 | 2 | 88 7) 71 | tos | 73

‘Excludes health insurance premiums, nursing home care, and medical
‘equipment repairs,

NOTE: Sums may not equal totals, due to rounding. CE categories have
been grouped as needed to match NHE.

Current Population Survey. The Bureau of the Census
collects income data in the March Supplement to the Cur-
rent Population Survey (CPS). Using data collected for
calendar years 1992 through 1995, comparisons were made
with Consumer Expenditure Interview survey estimates
of total consumer unit income before taxes and by source
of income. CPS estimates of aggregate income by source
of income were derived from Census estimates of mean
income of persons and the number of persons with the
specified income.

There are several differences between the Consumer Ex-
penditure Survey and the CPS. The CPS collects data in
March for the previous calendar year. By comparison, in
the Consumer Expenditure Interview survey, estimates of
income are obtained in the second and fifth interviews of
the consumer unit. These estimates refer to the prior 12
months; and, due to the rotating panel design of the Inter-
view survey, interviews may occur any time during the
year. Census imputes CPS income data that are missing
(due to nonresponse to income questions), based on de-
mographic characteristics. In contrast, income data that
are missing in the Consumer Expenditure Survey, due to
nonresponse, are not imputed as part of the Consumer Ex-
penditure Survey estimation procedure; instead, Con-
sumer Expenditure Survey income estimates are based on
complete income reporters only. Neither procedure ac-
counts for underreporting, which is especially prevalent
for property income.

In addition to the differences between the Consumer
Expenditure Survey and the CPS described above, the 1993

22 Consumer Expenditure Survey, 1994-95

SOURCE: The 1995 NHE data used to obtain the ratios are from the U.S.
Department of Health and Human Services, Health Care Financing Adminis-
tration, “Data View: National Health Expenditures, 1995" Health Care Fi-
nancing Review, Volume 18, Number 1, Fall 1996. Earlier NHE data used in
the comparisons are from previous issues of the Review.

and later ratios reflect the collection of CPS income data
by computer-assisted personal interview. By comparison,
Consumer Expenditure Survey data are collected by tradi-
tional paper and pencil interview. The 1993-95 ratios re-
flect further revisions to CPS data to include the 1990
Census-based sample design, reductions in sample size,
and selected editing procedures. Due to these changes in
CPS collection and estimation methods, one should use
caution when comparing 1993 and later ratios with those
for earlier years.

Text table 13 shows that the Consumer Expenditure
Survey estimates of total income before taxes are about 84
to 90 percent of the CPS. This reflects comparable levels
of estimates from the two surveys for the largest sources of
income, such as wages and salaries, self-employment in-
come, and Social Security income. Some differences in
estimates are expected, because of methodology differ-
ences between the two surveys described above and be-
cause the CPS is designed specifically to collect income
data, while the Consumer Expenditure Survey is designed
primarily to collect expenditure data. In addition, the CPS
population is about 3 percent larger than the Consumer
Expenditure Survey population. The low ratios for prop-
erty income reflect imputations for missing data in the
CPS and underreporting in the Consumer Expenditure Sur-
vey. Some variation in ratios reflects the general difficulty
of obtaining income information via household survey,
which is experienced by both the Consumer Expenditure
Survey and CPS.


LCakuemke Comparison of money income before taxes: Consumer Expenditure (CE) Survey and Current Population
Survey (CPS), 1992-95

Aggregate money income before taxes"

Income category ‘Consumer Expenditure Survey Ratio of CE Survey to CPS
(In billions)

1992 1993 | 1994 | 1995 1992 1993 1994 1995

Money income before taxes’... $3300 | $3364 | $3743 | $3764 | 090 | 0.89 0.87 0.84

‘Wage and salary incom 2502 2507 | 2841 2936 93 89 87 85

‘Self-employment income 250 249 | 251 | 210 | 1th | 1.10 1.07 99

Social Security and retirement income 351 389 430 449 97 | 1.02 1.04 99

Property income .. | 114 113 119 89 A6 49 ae 33

Unemployment, workers compensation, and veterans benefits... | 24 uw 32 29 52 68 68 61

Public assistance and Supplemental Security income | 26 2) 4] 8B 80 | 96 88 88

Regular contributions and other income .. | 33 4 | 37 | 89 68 | 473 59 60
‘CE data are for complete reporters of incume. SOURCE: CPS data on which ratios are based are from Money Income of
* Excludes value of food stamps, meals as pay, and rent as pay. Households, Families, and Persons in the United States (Annual), Series

P-60: number 184, table 34, number 193, table 11. (Bureau of the Census)
NOTE: Ratios are based on unrounded data.

Consumer Expenditure Survey, 1994-95 23