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Total Medicare Spending in 2014 = $613.3 billion

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Presentation on theme: "Total Medicare Spending in 2014 = $613.3 billion"— Presentation transcript:

0 Total U.S. prescription drug spending, in $ billions:
Actual Projected Part D begins! Change colors NOTE: Medicaid prescription drug spending accounts for rebates. SOURCE: Kaiser Family Foundation analysis of CMS National Health Expenditure Data for Historical (CY ) and Projected (CY ) Retail Prescription Drug Expenditures,

1 Total Medicare Spending in 2014 = $613.3 billion
Where to put this? Total Medicare Spending in 2014 = $613.3 billion SOURCE: DHHS ASPE Issue Brief, “Medicare Part B Drugs: Pricing and Incentives,” Table 1, March 2016, and 2016 Medicare Trustees Report (Tables III.D3 and V.B1).

2 Total Part D benefit spending growth rates
(average annual growth) Per capita Part D benefit spending growth rates (average annual growth) Actual Projected Actual Projected SOURCE: Kaiser Family Foundation analysis of data from 2016 Medicare Trustees Report (Table III.D4).

3 Spending on Hepatitis C drugs, in $ millions:
SOURCE: Senate Finance Committee report, Appendix C, November 2015.

4 Projected average annual growth in Medicare per beneficiary spending for Parts A, B, and D between Average Medicare per beneficiary spending: 2015 2025 $5,019 $5,522 $2,203 $6,901 $8,642 $3,861 SOURCE: 2016 Medicare Trustees Report (Table V.D1).

5 Average Total Out-of-Pocket Spending on Services in 2011: $2,763
Prescription drugs as a share of beneficiary out-of-pocket spending: Average Total Out-of-Pocket Spending on Services in 2011: $2,763 NOTE: Analysis excludes beneficiaries enrolled in Medicare Advantage plans. SOURCE: Kaiser Family Foundation analysis of the Medicare Current Beneficiary Survey 2011 Cost & Use file.

6 Annual Part D deductible
Past and projected Medicare Part D premiums and deductibles: Annual Part D premium WE ARE HERE Annual Part D deductible SOURCE: 2016 Medicare Trustees Report (Table V.E2).

7 Share of total drug costs beneficiaries pay in the coverage gap as the “doughnut hole” closes:
SOURCE: Kaiser Family Foundation illustration of data from the Centers for Medicare & Medicaid Services.

8 Median on-formulary out-of-pocket costs in 2016: $6,516
Hepatitis C $6,516 Up to catastrophic coverage phase $6,608 In catastrophic coverage phase $7,153 Multiple Sclerosis $5,979 $6,235 $6,448 Rheumatoid Arthritis $4,413 $4,864 $4,872 Cancer $7,227 $8,503 $11,538 NOTE: Analysis includes 20 national and near-national stand-alone prescription drug plans in Baltimore, MD (zip code 21201) and reflects pricing at a Rite Aid pharmacy in this zip code. SOURCE: Georgetown/Kaiser Family Foundation analysis of 2016 Medicare Plan Finder data.

9 Percent who say they favor each of the following:
NOTE: Items asked of half sample. SOURCE: Kaiser Family Foundation Health Tracking Poll (conducted August 6-11, 2015).


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