Week Six Monday-Friday Financing 2010

Week Six Monday-Friday Financing 2010 - NATIONAL HEALTH...

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Unformatted text preview: NATIONAL HEALTH EXPENDITURES HEALTH CARE SPENDING IN THE UNITED STATES IS PROJECTED TO REACH $2.5 TRILLION IN 2009, 4.3 TRILLION IN 2018, UP FROM $1.3 TRILLION IN 2000. CURRENT SPENDING ABOUT 2 TRILLION DOLLARS Comparison of NHE/GDP Some really pretty color charts Percentage of National Health Spending Source of Dollars for National Health Spending Where the money goes Where the money goes - percentage Total National Health Expenditures, 20082017 Projected and Various Scenarios 2.4 2.6 2.8 2.3 4.4 4.1 3.9 3.6 3.4 3.2 3.0 2.7 4.1 3.9 3.7 3.4 3.2 3.0 2.9 2.9 2.4 2.5 2.6 2.8 3.0 3.1 3.3 3.4 3.6 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Projec ted under c urrent system Insuranc e Connec tor plus selec ted individual options* Spending at c urrent proportion (16.2%) of GDP Dollars in trillions INTERNATIONAL COMPARISON 2005 U.S. SPENT 16% OF GDT ON HEALTH GERMANY SPENT 10.7% CANADA SPENT 9.7 GROWTH IN HEALTH CARE SPENDING IN THE UNITED STATES IS PROJECTED TO BE 6.7% IN 2007. AVERGE ANNUAL GROWTH IS EXPECTED TO REMAIN THE SAME RATE THROUGH 2017. AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT (GDP), HEALTH CARE SPENDING IS PROJECTED TO INCREASE TO 17.6 PERCENT IN 2009. IT IS EXPECTED THAT HEALTH CARE SPENDING WILL REACH OVER $4.3 TRILLION AND BE 19.5% OF GDP. (2007-17) THE GROWTH IN PRESCRIPTION DRUG SPENDING IS EXPECTED TO DECELERATE FROM 17.3 PERCENT IN 2000 TO 10.1 PERCENT IN 2011. PRESCRIPTION DRUGS WILL STILL REMAIN THE FASTEST GROWING HEALTH SECTOR. IN JUST THREE YEARS, THE MEDICARE AND MEDICAID PROGRAMS WILL ACCOUNT FOR 50% OF ALL NATIONAL HEALTH SPENDING . MEDICARES HOSPITAL INSURANCE TRUST FUND IS EXPECTED TO PAY OUT MORE IN HOSPITAL BENEFITS THAN IT RECEIVES IN TAXES AND OTHER DEDICATED REVENUES NURSING HOME SPENDING IS PROJECTED TO ACCELERATE MORE RAPIDLY THAN PREVIOUSLY ANTICIPATED. INSURANCE PREMIUMS FOR EMPLOYER-BASED HEALTH INSURANCE ROSE 7.7% IN 2006 SMALL EMPLOYERS 8.8% BUSINESS WITH LESS THAN 24 EMPLOYEES 10.5% SINCE 2000 EMPLOYMENT BASED PREMIUMS HAVE INCREASED BY 87%. IN CONTRAST, INFLATION OVER THE SAME PERIOD ACCUMULATED AT 18% HEALTH INSURANCE PREMIUMS ARE THE FASTEST GROWING COMPONENT FOR EMPLOYERS AND MAY OVERTAKE PROFITS BY 2008. THE AVERAGE EMPLOYEE CONTRIBUTION TO COMPANY BASED HEALTH INSURANCE HAS INCREASED 143% SINCE 2000. AVERAGE OUT-OF-POCKET COSTS FOR COPAYMENTS AND DEDUCTIBLES HAVE INCREASED BY 115% SINCE 2000 MEDICAL INFLATION WILL INCREASE. COMMERCIAL MANAGED CARE WILL SEE SLOWER MEMBERSHIP GROWTH AND FEWER MEDICAL CONTROLS WHICH WILL CONTRIBUTE TO HIGHER HEALTH CARE COSTS. AFTER 2002, GOVERNMENT SPENDING WILL ACCELERATE AS AGING BABY BOOMERS DEMAND MORE GOVERNMENT SUPPORT FOR THEIR CARE. THE PRIVATE SECTORS ABILITY TO HOLD DOWN HEALTH CARE COSTS THROUGH MANAGED CARE HAS REACHED A LIMIT. COST SAVINGS FROM MANAGED CARE RESULTED PRIMARILY FROM LOWER PAYMENTS TO PROVIDERS, NOT BY IMPROVING HEALTH STATUS AND REDUCING UTILIZATION. FINANCIAL STRUGGLES EXPERIENCED BY HMOS WILL RESULT IN HIGH COSTS FOR HEALTH CARE COVERAGE. CONTAINING DRUG COSTS WILL BE ONE OF THE GREATEST CHALLENGES THE HEALTH CARE SYSTEM WILL FACE....
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Week Six Monday-Friday Financing 2010 - NATIONAL HEALTH...

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