Congressional Budget Office The Medicare Advantage Program July 16, 2007

Total Federal Spending for Medicare and Medicaid Under Assumptions About the Health Cost Growth Differential Percent of Gross Domestic Product

Recent Enrollment in Medicare Advantage and Other Group Health Plans Additions Total, Dec During 2006 During 2007 Total, June 2007 Medicare Advantage Local HMOs and PPOs5, ,190 Private fee for service ,590 Regional PPOs Total for All Group Health Plans6,1201, ,560

Enrollment in Medicare Advantage as a Percentage of Enrollment in Medicare Percentage of Part A Enrollment

Estimated Budgetary Effects of Policies Capping the Benchmarks under the Medicare Advantage Program Source: Dartmouth Atlas of Health Care. Limit on MA Benchmarks as aChange in Direct Spending (Billions of dollars) Percentage of FFS Costs2008– –

Medicare Spending per Capita in the United States, by Hospital Referral Region, 2003 Source: Dartmouth Atlas of Health Care. $7,000 to to11,352 (63) (63) 6,500 to < to <7,000 (53) (53) 6,000 to < to <6,500 (56) (56) 5,500 to < to <6,000 (64) (64) 4,272 to < to <5,500 (70) (70) Not Populated