Delaware Health Care Commission

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Delaware Health Care Commission March 3,
2005 Alice Burton, Director AcademyHealth
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Presentation Outline

• Health care cost trends
• Impact on access
• Possible solutions

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National Health Spending as a share of Gross
Domestic Product

Source CMS, National Health Accounts Data
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Health Care Spending and GDP Trends
Source Center for Studying Health Change, Issue
Brief 91, December 2004.
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Spending by Category of Service
Source Center for Studying Health System Change,
Brief 91, December 2004
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Hospital Spending Price and Utilization
Source Center for Studying Health System Change,
Brief 91, December 2004
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Long-term Cost Drivers

• Advances in medical technology
• Increased resources in medical care
• Lifestyle changes
• Oversold drivers
• Population aging
• Professional liability
• Mandates

Adapted from Presentation to State Coverage
Initiatives National Meeting, February 4, 2005by
Paul B. Ginsburg, Ph.D.
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Delaware Health Statistics

• Health Spending per capita 6th
• Infant mortality 45th
• Premature Death 39th
• Obesity 33rd
• Physicians per capita 16th
• Hospital beds per capita 33rd
• United Health Foundation 32nd

Source CDC, state health profiles, Health United
States, United Health Foundation
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Recent Premium, Cost and Wage Growth
Source KFF/HRET Survey of Employer Health
Benefits 1999-2004
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Family Health Insurance as percent of wages for
different occupations
Median Hourly Wage
family premium/ median
wage Physician 60.10 7.3 History
Professor 27.63 15.8 LPN 16.18 26.9
Secretary 15.00 29.1 Bank Teller
9.93 43.9 Carpenter 18.00 24.2 Cook
8.75 49.8
Source Nichols, Future of ESI, for CHCF,
forthcoming, 2004
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Low income take-up is falling
Source Nichols and Cunningham, Who are
decliners?, Academy Health Annual Research
Conference presentation, 2004.
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Efforts to make insurance more affordable

• Limited benefits
• At least 11 states have passed minimum benefit
  legislation 4 in 2004
• Low enrollment
• Consumer directed health care
• Options for state and local employees
• Legislation to allow qualifying High Deductible
  Health Plans to be sold in the state
• Prevention strategies healthy behaviors