Health Care Financing

1
Health Care Financing

• Where the Money Comes from and Where it Goes

2
The Nations Health Dollar, CY 2000
CMS Programs 33
Total National Health Spending 1.3 Trillion
Source CMS, Office of the Actuary, National
Health Statistics Group.
3
National Health Expenditures as of GDP
Period of stabilization
Period of accelerated growth
Percent of GDP
Calendar Years
Source CMS, Office of the Actuary, National
Health Statistics Group.
4
Recent Health Expenditure Increases
SOURCE http//www.cms.hhs.gov/statistics/nhe/hist
orical/
5
Growth in National Health Expenditures
Percent
Nominal
Nominal
Nominal
Nominal
Real
Real
Real
Real
Calendar Years
Source CMS, Office of the Actuary, National
Health Statistics Group.
6
Projected Growth in National Health Expenditures
Actual
Projected
Percent
Nominal
Real
Calendar Years
Source CMS, Office of the Actuary, National
Health Statistics Group.
7
Per Capita Health Expenditures
SOURCE http//www.cms.hhs.gov/statistics/nhe/hist
orical/tables.pdf
8
Health Insurance Premium Trends
9
What Accounted for Health Expenditure Increases?
Average Annual Percent Change
Selected Calendar Year Periods
Source CMS, Office of the Actuary, National
Health Statistics Group.
10
Distribution of Spending - 2000
Total Health Spending 1.3 Trillion
Source CMS, Office of the Actuary, National
Health Statistics Group.
11
Comparison of Spending Categories1990 and 2000
Calendar Years
Percent Share
Source Centers for Medicare Medicaid Services,
Office of the Actuary, National Health
Statistics Group.
12
Prescription Drug Expenditure Growth and Share of
National Health Expenditures
17.3
12.1
Growth
Percent
9.4
4.9
Share of NHE
Calendar Years
Source CMS, Office of the Actuary, National
Health Statistics Group.
13
Expenditures for Prescription Drugs, by Source of
Funds

2000
1988
Out-of-pocket 32
Out-of-pocket 60
Private Health Insurance 46
Private Health Insurance 24
Public 16
Public 22
Source CMS, Office of the Actuary, National
Health Statistics Group.
14
Expenditures for Hospital Services by Source of
Funds


Source CMS, Office of the Actuary, National
Health Statistics Group.
15
Sources of Hospital Funding
Source http//www.cms.hhs.gov/statistics/nhe/hist
orical/t5.asp
16
Sources of Hospital Funding
17
Growth in Expenditures in Community Hospitals,
1980-2000
Introduction of Medicare PPS
Growth of Managed Care
Outpatient
Inpatient
Calendar Year
Source CMS, Office of the Actuary, National
Health Statistics Group.
18
Funding for Freestanding Nursing Home
Expenditures 2000
Medicare 10
Medicaid 48
Private 39
All Other Public 2
Source CMS, Office of the Actuary, National
Health Statistics Group.
19
Annual Growth in Public and Private Sources of
Home Health Spending 1990-2000
Percent
Source CMS, Office of the Actuary, National
Health Statistics Group. Note BBA indicates
the Balanced Budget Act of 1997.
20
Share of Expenditures for Physician and Clinical
Services

OOP
PHI
Source CMS, Office of the Actuary, National
Health Statistics Group.