The Outlook for Spending on Health Care and Long-Term Care - - PowerPoint PPT Presentation

the outlook for spending on health care and long term care
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The Outlook for Spending on Health Care and Long-Term Care - - PowerPoint PPT Presentation

Congressional Budget Office Presentation to the National Governors Association's Health and Human Services Committee The Outlook for Spending on Health Care and Long-Term Care February 24, 2008 Federal Spending Under CBOs Alternative


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Congressional Budget Office

Presentation to the National Governors Association's Health and Human Services Committee

The Outlook for Spending on Health Care and Long-Term Care

February 24, 2008

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SLIDE 2

Federal Spending Under CBO’s Alternative Fiscal Scenario

Percentage of GDP

1962 1972 1982 1992 2002 2012 2022 2032 2042 2052 2062 2072 2082 10 20 30 40 Medicare and Medicaid Actual Projected Social Security Other Spending (Excluding debt service)

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Sources of Growth in Projected Federal Spending on Medicare and Medicaid

Percentage of GDP

2007 2012 2017 2022 2027 2032 2037 2042 2047 2052 2057 2062 2067 2072 2077 2082 5 10 15 20 Effect of Excess Cost Growth Effect of the Aging of the Population

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Medicare Spending per Capita in the United States, by Hospital Referral Region, 2003

Source: www.dartmouthatlas.org.

$7,200 to 11,600 (74) 6,800 to < 7,200 (45) 6,300 to <6,800 (55) 5,800 to <6,300 (60) 4,500 to < 5,800 (72) Not Populated

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The Relationship Between Quality and Medicare Spending, by State, 2004

73 78 83 88 4,000 5,000 6,000 7,000 8,000

Spending (Dollars)

Composite Measure of Quality of Care

Source: Data from AHRQ and CMS.

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What Additional Services Are Provided in High-Spending Regions?

Source: Elliot Fisher, Dartmouth Medical School.

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Variations Among Academic Medical Centers

Care Delivery―and Spending―Among Medicare Patients in Last Six Months of Life 1.1 1.0 2.9 Ratio, medical specialist / primary care 23.9 42.2 52.1 Physician visits 12.9 17.7 19.2 Hospital days 26,330 40,181 50,522 Total Medicare spending 90.4 85.9 81.5 CMS composite quality score Biologically Targeted Interventions: Acute Inpatient Care Mayo Clinic (St. Mary’s Hospital) Massachusetts General Hospital UCLA Medical Center

Use of Biologically Targeted Interventions and Care-Delivery Methods Among Three of U.S. News and World Report’s “Honor Roll” AMCs

Source: Elliot Fisher, Dartmouth Medical School.

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Medicaid Spending per Patient for Long-Term Care, 2005

Source: CBO calculations using data from Thomson Healthcare and the Medicaid Statistical Information System.

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Medicaid Spending for Long-Term Care, by Type of Service

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 10 20 30 40 50

Personal Care Home and Community-Based Services Waiver Home Health Skilled Nursing Facilities Intermediate Care Facilities for the Mentally Retarded

Billions of Dollars

Source: Thomson Healthcare analysis using CMS 64 data. Note: Data include federal and state spending.

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Spending for Long-Term Care, by Source, 2006

Not Including Informal Care Including Informal Care

Sources: CBO; CMS Office of the Actuary; and Arno, P., and others, "The Economic Value of Informal Caregiving," Health Affairs, vol. 18, no. 2 (2002). Medicaid (45%) Medicare (23%) Private Insurance (8%) Out-of-Pocket Payments (19%) Other (5%) Medicaid (19%) Medicare (10%) Private Insurance (3%) Out-of-Pocket Payments (8%) Other (2%) Informal Care (58%)

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The Number of Long-Term Care Insurance Policies Sold

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 100 200 300 400 500 600 700 800

Thousands

Sources: CBO (based on conversations with industry experts) and data from AHIP.

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Median Assets of Married People Ages 63 to 67 in the Population as a Whole and Within the Impaired Population, 2002

Source: HRS/AHEAD.

  • a. Impaired is defined as having three or more losses in the health activities of daily living.

Thousands of Dollars

Total Population Impaired Populationa 50 100 150 200 250 199.4 84.8 84.5 31.0 Total Assets Net Nonhousing Assets

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Projections of the U.S. Elderly Population

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 5 10 15 20 25

Age 65 and Older Age 85 and Older

Percentage of Total Population

Source: U.S. Bureau of the Census.

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SLIDE 14

Increase in Life Expectancy and Increase in Difference in Life Expectancy by Economic Status

Source: Data from Singh and Siahpush (2006) and CDC. At Birth At Age 65 1 2 3 4

Increase in Average Life Expectancy, 1980–2000 Increase in Difference in Average Life Expectancy Between Lowest and Highest Decile, 1980–2000

Years

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CBO’s Activities in Analyzing Health Care

New Hires and Expanded Staffing

– New deputy assistant director (Keith Fontenot) in the Budget Analysis Division – Increase in health staff agencywide from 30 FTEs to 40 FTEs (Plus 6 new hires) – FY 2009 plans

Reports and Analysis in 2008

– Critical Topics in Health Reform – Health Options