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National Health Spending In 2011: Overall Growth Remains Low

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Presentation on theme: "National Health Spending In 2011: Overall Growth Remains Low"— Presentation transcript:

1 National Health Spending In 2011: Overall Growth Remains Low
Hartman et al. Health Affairs

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3 Something to understand
Slower growth DOES NOT MEAN “no growth”. For example, if expenditures in Year 1 are 100, Year 2 are 110, and Year 3 are 115. Rates of growth are 10% and 4.6%. Growth has slowed, but expenditures continue to rise.

4 Where growth accelerated
Retail prescription drugs (2.9%)--spending growth accelerated from 0.4% growth in 2010, partly because of price increases in brand-name and specialty drugs. Physician and clinical services (4.3%)--spending grew faster in 2011 compared to growth of 3.1% in 2010 and was due primarily to increased growth in non-price factors, such as the use and complexity or intensity of services that more than offset slower growth in prices for these services. Medicare spending (6.2%)--this faster growth (compared to 4.3% growth in 2010) is attributable to a one-time increase in spending for skilled nursing facilities and faster growth in spending for physician services under fee-for-service Medicare and for Medicare Advantage spending . Private health insurance (3.8%)--the acceleration (from 3.4% growth in 2010) was mainly due to private health insurance enrollment increasing 0.5% in 2011, after declining each year from 2008 to 2010. Out-of-pocket spending (2.8%)--spending growth increased faster in 2011 compared to 2010, when growth was 2.1%, and was partially due to higher cost sharing and increased enrollment in consumer-directed health plans.

5 Where growth decelerated
Hospital spending (4.3%)--the slowdown from 4.9% growth in 2010 is attributable to slower growth in the prices charged by hospitals and low growth in use of hospital services and in Medicaid spending for hospital care. Medicaid expenditures (2.5%)--growth slowed from 5.9% in 2010 and was mainly due to continued financial pressure on state budgets because of the economy and a shift in the share of spending from the federal government to the states (a result of expiration of enhanced federal aid to states in June 2011), as well as slower enrollment growth in the program (from 4.9% in 2010 to 3.1% in 2011).

6 In pictures Green box is largely related to quantities.

7 In pictures


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