2. Interpreting the estimates published by CMS

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Presentation transcript:

2. Interpreting the estimates published by CMS Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000 Two emphases: 1. The tools CMS uses to estimate size and structure of the US Health Industry 2. Interpreting the estimates published by CMS

U. S. National Health Accounts (NHA) (http://www. cms Starting in 1964, HHS has published annual statistics on national health expenditures. The NHA define sources of health expenditures and medical services exchanged for these expenditures. By maintaining a consistent set of these definitions, the NHA can compare NHE over time. Each health transaction is entered twice into the NHA - as an expenditure and a payment. This double-entry set-up enables NHA statisticians to compare expenditures against payments to check NHE estimates for accuracy.

The NHA Are Grouped Into Various Configurations That Measure Key Trends in Health Policy Debates (http://www.cms.gov/statistics/nhe/historical/t3.asp) PHE as a portion of GDP PHE by various sources of funds Over time, changes in the sources-of-funds structure Payments for various types of services Over time, changes in the types-of-services structure Projections

National Health Expenditures(NHE) by objects: Health services and supplies Personal Health Care (PHC) Program administration and net cost of private health insurance Government public health activities Research and construction Research Construction

NHE by Sources of Funds Out-of-pocket expenditure Private health insurance Non-patient revenue and philanthropy Medicare Medicaid State and local government hospital subsidy Other government programs (SCHIP)

Deflating PHC Expenditures Deflating health care spending separates the effects of price growth from growth attributable to all other factors. PHC expenditure fixed weight price index (M-CPI). Based on surveys taken by the Department of Labor. M-CPI is used to deflate current annual estimates of personal health care expenditures. This technique is used to eliminate the impact of market changes on PHC expenditures. Comments on current concerns about M-CPI