The impact of loneliness and social isolation on Medicare costs

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AdobeStock_287680028-1An older woman looks out the window while drinking a cup of tea. Loneliness is more than a temporary feeling. It affects how people engage in their health and social connections. It impacts people globally and some experience it more severely than others. Learn about the impact of loneliness on Medicare members and the ripple effects on health care costs.

How loneliness and social isolation impact Medicare members

Research shows us the true impact of loneliness among Medicare members. And although they aren’t the most vulnerable group, older people are still more likely to suffer from loneliness. According to the National Academies of Sciences, Engineering and Medicine (NASEM), approximately 25 percent of people 65 and older are socially isolated, whereas 33 percent of those 45 and older are lonely. 

So where does this loneliness stem from, and how does it affect a person’s quality of life?

Lack of social contact

Do you remember watching soap operas at your grandparents’ house as a kid? Life is quieter for older adults who often lack community ties or are homebound. And when you add in a chronic condition or mental health diagnosis, their social contact is reduced even more. Brief visits from family and medical appointments may be some of the only social interactions older Medicare members have, increasing feelings of loneliness. 

Compounding health issues

The impact of loneliness among older adults also extends into their overall health. In fact, loneliness contributes to an increased risk of serious diseases such as cardiovascular disease, diabetes, dementia, stroke and early death. NASEM puts this in perspective with hard numbers surrounding these risks, indicating that older adults who are lonely face a:

  • 50 percent increased risk of dementia.
  • 29 percent increased risk of heart disease.
  • 32 percent increased risk of stroke.

How loneliness and isolation impact costs 

Loneliness and isolation create a cost burden for plans and members alike. When members are lonely, it leads to inaction — or at least actions that aren’t ideal — perpetuating a cycle of disengagement and unnecessary spending. These are just a few of the ways it all adds up:

Reliance on low-value care

Consider this from a member’s perspective: Costs to see a doctor rose 8 percent, and costs to get prescriptions rose 9 percent between 2021-2022. Although it might not seem like much, as health care costs increase, Medicare members become more hesitant to seek treatment. And when you add loneliness to the mix, the same individuals likely struggle to engage in their health appropriately. 

As a result, these members don’t receive the care they need at the right time. Instead, lonely Medicare members may rely on low-value care, ranging from unnecessary and expensive emergency department (ED) visits with doctors who don’t know a patient’s history to overuse of imaging and diagnostic tests.

This tendency creates a double-edged sword. Lonely members wind up paying more for their care because they wait until their situations worsen, and plans like yours contend with higher claims for treatment. This adds up over time, with low-value care costing the health care system $340 billion each year.

Uncover the health impacts of loneliness on Medicare members and learn  strategies to address it within your plan.

Problems with medication adherence

Medication adherence is a significant problem for lonely Medicare members. These members often approach their health care under a skewed lens, believing they can’t afford their prescriptions or lacking the health literacy to manage their care. This nonadherence carries both health and financial ramifications. Members’ conditions deteriorate without the medications they need, and the associated morbidity and mortality cost the health care system $528.4 billion annually.

Unnecessary costs due to hospitalization and readmission

A stay at the hospital isn’t always the best option, and yet it’s a frequent impact of loneliness. According to AARP, Stanford University and Harvard University, Medicare spends almost $7 billion a year more caring for lonely and isolated members than other groups. Up to 26.9 percent of readmissions are avoidable, but when members don’t get the right care at the right time, they could land back in hospitals.

Confront the impacts of loneliness with Pyx Health

Loneliness and social isolation aren’t contained in a bottle. Instead, the impact of loneliness compounds on members’ health risks — from dementia to heart health — and spills over into higher costs stemming from low-value care, medication nonadherence and readmissions. 

But remember this: Medicare members often want relief! In fact, three out of four seniors said a companion would help them feel socially connected, and more than half of them also want referrals to resources. That’s where Pyx Health can help. Our solution is based on compassionate, tech-enabled intervention. The app enables members to participate in assessments and engaging activities to improve their wellness and gain information about the right care approach. Additionally, Medicare members will have unlimited access to peer support through Pyx Health’s ANDYs (Authentic, Nurturing, Dependable, Your Friend), who can provide companionship and referrals to plan resources.

Want to know if Pyx Health is right for your plan? Download our population report to see how Pyx Health helps members.

Why Medicare Plans Should Care about Loneliness eBook cover