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National Health Expenditures: 2001 Update for National Health Policy Audioconference: Employer and Health Plan Responses to the Challenge of Rising Health Care Costs February 11, 2003. Katharine Levit Director National Health Statistics Group Office of the Actuary

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Presentation Transcript
slide1

National Health Expenditures:

2001 Update

for

National Health Policy Audioconference:

Employer and Health Plan Responses

to the Challenge of Rising Health Care Costs

February 11, 2003

Katharine Levit

Director

National Health Statistics Group

Office of the Actuary

Centers for Medicare & Medicaid Services

slide2

Growth in National Health Expenditures

Calendar Years 1980-2001

Period of managed care expansions

8.7%

Percent

Calendar Years

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

slide3

Growth in Gross Domestic Product

Calendar Years 1980-2001

Percent

2.6%

Calendar Years

SOURCE: Bureau of Economic Analysis, US Department of Commerce..

slide4

National Health Expenditures as a

Share of Gross Domestic Product (GDP): 1980-2001

Period of managed care expansions

Percent of GDP

Calendar Years

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

factors accounting for growth in personal health care expenditures per capita
Factors Accounting for Growth in Personal Health Care Expenditures Per Capita

1

2

Average Annual Percent Change

Selected Calendar Year Periods

1 Utilization includes quality and mix of services. As a residual, this factor also includes any errors in measuring prices or total spending.

2 Medical prices are calculated using the personal health care chain-type index constructed from the producer price index for hospital care, nursing home input price index for nursing home care, and consumer price indexes specific to each of the remaining personal health care components. Includes general economy-wide inflation as well as medical price inflation in excess of economy-wide inflation.

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

slide6

The Nation’s Health Dollar, Calendar Year 2001: Where It Came From

CMS

Programs

33%

1 Other public includes programs such as workers’ compensation, public health activity, Department of Defense,

Department of Veterans Affairs, Indian Health Service, and State and local hospital subsidies and school health.

2 Other private includes industrial in-plant, privately funded construction, and non-patient revenues, including philanthropy.

NOTE: Numbers shown may not add to 100.0 because of rounding.

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

slide7

Growth in Private Health Insurance Premiums:Calendar Years 1990 - 2001

10.5%

Percent

Calendar Years

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

growth in medicaid spending
Growth in Medicaid Spending

10.7%

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

growth in medicare personal health care spending calendar years 1990 2001
Growth in Medicare Personal Health Care Spending:Calendar Years 1990 - 2001

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

slide10

Average Annual Spending Growth in Per Enrollee Medicare and Private Health Insurance Benefits1

Entire Period

Selected Periods

Percent

Calendar Years

1 Excludes spending for prescription drugs because this is covered predominantly by private insurance only.

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

slide11

The Nation’s Health Dollar, Calendar Year 2001:

Where It Went

NOTE: Other spending includes dentist services, other professional services, home health, durable

medical products, over-the-counter medicines and sundries, public health, research and construction.

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

slide12

Health Care Spending in 2001

Annual Total

$1.4 Trillion

Annual Increase

$115 Billion

Hospital

Physician

Prescription Drugs

All Other 1

1 Includes spending for Dental, Other Professional and Other Personal Health Care Services; Home Health and Nursing Home Care; Durable and Other Nondurable Medical Products; Administration and Insurance Net Cost; Government Public Health; Medical Research; and Medical Construction.

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

growth in expenditures for hospital care calendar years 1990 2001
Growth in Expenditures for Hospital CareCalendar Years 1990-2001

8.3%

Percent

Calendar Years

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

slide14

Community Hospital Expenditures:

Inpatient and Outpatient Shares

Percent

Calendar Years

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

growth in inpatient days and outpatient visits
Growth in Inpatient Days and Outpatient Visits

SOURCE: American Hospital Association, Annual Survey.

slide16

Prescription Drug Expenditure Growth and

Share of National Health Expenditures

Growth

Percent

Share of NHE

Calendar Years

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.

drug plan cost sharing formulas of covered workers 2000 2002
Drug Plan Cost-Sharing Formulas of Covered Workers, 2000-2002

Source:Kaiser/HRET Survey of Employer-Sponsored Health Benefits: 2000, 2001, 2002.

slide18

Growth in Health Spending and GDP

Calendar Years 1990-2001

Health Spending

Percent

GDP

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group; U.S. Department of Commerce,

Bureau of Economic Analysis..

slide19

12-Month Growth1 in Total and Health Services

Employment: January 1992-November 2002

Health Services

Percent

Total

1 Percent change from the same period one year earlier.

Note: Percent change from the same month of previous year. October and November 2002 data are preliminary

Source: U.S. Department of Labor, Bureau of Labor Statistics.