TABLE OF CONTENTS
CHAPTER 1.0: Trends in the Overall Health Care Market
Chart 1.1: Total National Health Expenditures, 1980 – 2007
Chart 1.2: Percent Change in Total National Health Expenditures, 1987 – 2007
Chart 1.3: Per Capita National Health Expenditures, 1980 – 2007
Chart 1.4: National Health Expenditures as a Percentage of Gross Domestic Product, 1987 – 2007
Chart 1.5: National Expenditures for Health Services and Supplies by Category, 1980 and 2007
Chart 1.6: Percent Change in National Expenditures for Health Services and Supplies by Category, 2006 – 2007
Chart 1.7: Percent Change in National Expenditures for Selected Health Services and Supplies, 1997 – 2007
Chart 1.8: National Health Expenditures, 1980 – 2018
Chart 1.9: Consumer Out-of-pocket Payments for National Health Expenditures, 1990 – 2007
Chart 1.10: Total Prescription Drug Spending, 1980 – 2007
Chart 1.11: Growth in Total Prescription Drug Spending as a Percentage of Total Growth in National Health Expenditures, 1987 – 2007
Chart 1.12: Consumer Out-of-pocket Spending vs. Private Health Insurance Spending for Prescription Drugs, 1987 – 2007
Chart 1.13: Distribution of National Health Expenditures by Source of Payment, 1980, 2000, and 2007
Chart 1.14: Distribution of Health Insurance Coverage, Percentage of Population Covered by Payer, 1990, 2006, and 2007
Chart 1.15: Number and Percent Uninsured, 1987 - 2007
TABLE OF CONTENTS
CHAPTER 1.0: Trends in the Overall Health Care Market
Chart 1.16: Average Percent Uninsured by State, 2005 – 2007
Chart 1.17: Medicare Enrollees, 1988 – 2008
Chart 1.18: Medicaid Enrollees, 1990, 1995, 2000 – 2007
Chart 1.19: National SCHIP Enrollment, FY 1999 – FY 2007
Chart 1.20: Percent Change in SCHIP Enrollment By State, FY 2006 – FY 2007
Chart 1.21: Percentage of Employees with Employer-based Coverage Who CanChoose Conventional, PPO, HMO, POS, and HDHP/SO Plans, 1988 – 2008
Chart 1.22: Distribution of Employer-sponsored Health Insurance Enrollment by Type of Plan, 1988 – 2008
Chart 1.23: Percentage of Medicare Beneficiaries Enrolled in Medicare Managed Care, 1991 – 2008
Chart 1.24: Percent Growth in Medicare Spending per Beneficiary vs. Private Health Insurance Spending per Enrollee, 1987 – 2007
Chart 1.25: Percentage of Medicaid Beneficiaries Enrolled in Medicaid Managed Care, 1992 – 2007
Chart 1.26: Percentage of Medicaid Beneficiaries Enrolled in Medicaid Managed Care by State, 2007
Chart 1.27: Annual Change in Health Insurance Premiums, 1998 – 2008
Chart 1.28: HMO Plan Median Operating Margins, 1990 – 2006
Chart 1.29: Operating Margins of the Top Insurers, 2005 – 2007
Chart 1.1: Total National Health Expenditures, 1980 – 2007(1)
Inflation Adjusted(2)
$200
$700
$1,200
$1,700
$2,200
$2,700
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Bill
ions
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
(2) Expressed in 1980 dollars; adjusted using the overall Consumer Price Index for Urban Consumers.
Chart 1.2: Percent Change in Total National Health Expenditures, 1987 – 2007(1)
8.9%
11.9
%
11.3
%
11.8
%
9.4%
8.6%
7.5%
5.4%
5.6%
5.1%
5.3% 5.8% 6.3% 7.
0%
8.6% 9.0%
8.3%
6.9%
6.8%
6.7%
6.1%
0%
5%
10%
15%
20%
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Per
cent
Cha
nge
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
Chart 1.3: Per Capita National Health Expenditures, 1980 – 2007(1)
Inflation Adjusted(2)
$200
$1,200
$2,200
$3,200
$4,200
$5,200
$6,200
$7,200
$8,200
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Per
Cap
ita A
mou
nt
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
(2) Expressed in 1980 dollars; adjusted using the overall Consumer Price Index for Urban Consumers.
Chart 1.4: National Health Expenditures as a Percentage of Gross Domestic Product, 1987 – 2007(1)
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
10.8
%
11.2
%
11.6
%
12.3
%
13.0
%
13.4
%
13.7
%
13.6
%
13.7
%
13.7
%
13.6
%
13.6
%
13.7
%
13.8
%
14.5
%
15.3
%
15.8
%
15.9
%
15.9
%
16.0
%
16.2
%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Per
cent
age
of G
DP
Chart 1.5: National Expenditures for Health Services and Supplies(1) by Category, 1980 and 2007(2)
Hospital Care, 43.3%Hospital Care, 33.2%
Physician Services, 20.2%
Physician Services, 22.8%
Other Professional(4), 7.3%Other Professional(4), 7.5%
Home Health Care, 1.0%Home Health Care, 2.8%
Prescription Drugs, 5.2% Prescription Drugs, 10.8%
Other Medical Durables and Non-durables, 5.8%Other Medical Durables and Non-durables, 2.9%
Nursing Home Care, 7.9%Nursing Home Care, 6.3%
Other(3), 9.4% Other(3), 13.6%
1980 2007
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) Excludes medical research and medical facilities construction.(2) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are applied to the entire time series
(back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.(3) “Other” includes net cost of insurance and administration, government public health activities, and other personal health care.(4) “Other professional” includes dental and other non-physician professional services.
$233.4B $2,098.1B
Chart 1.6: Percent Change in National Expenditures for Health Services and Supplies(1) by Category, 2006 – 2007(2)
11.3%
7.3%
4.9%
3.7%
5.4%4.8%
3.6%
6.5%6.1%
All Health Services & Supplies, 6.2%
0%
2%
4%
6%
8%
10%
12%
Home HealthCare
Admin. & NetCost of
P rivate HealthInsurance
P rescriptionDrugs
Hospital Care Other P hysicianServices
OtherP rofessional
NursingHome Care
Other MedicalDurables andNon-durables
Per
cent
Cha
nge
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) Excludes medical research and medical facilities construction.(2) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
(3) “Other” includes government public health activities and other personal health care.(4) “Other professional” includes dental and other non-physician professional services.
(3)(4)
Chart 1.7: Percent Change in National Expenditures for Selected Health Services and Supplies, 1997 – 2007(1)
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
Hospital Care
Prescription Drugs
Admin. & Net Cost of Private Health Insurance
Home Health Care
Nursing Home Care
-5%
0%
5%
10%
15%
20%
97 98 99 00 01 02 03 04 05 06 07
Per
cent
Cha
nge
Chart 1.8: National Health Expenditures(1), 1980 – 2018(2)
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released February 23, 2009.(1) Years 2008 – 2018 are projections.(2) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
80 90 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
Bill
ions
Chart 1.9: Consumer Out-of-pocket Payments for National Health Expenditures, 1990 – 2007(1)
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
$0
$40
$80
$120
$160
$200
$240
$280
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Bill
ions
Chart 1.10: Total Prescription Drug Spending, 1980 – 2007(1)
Inflation Adjusted(2)
$0
$40
$80
$120
$160
$200
$240
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Bill
ions
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
(2) Expressed in 1980 dollars; adjusted using the overall Consumer Price Index for All Urban Consumers.
Chart 1.11: Growth in Total Prescription Drug Spending as a Percentage of Total Growth in National Health Expenditures, 1987 – 2007(1)
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
0%
5%
10%
15%
20%
25%
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Per
cent
age
of T
otal
Gro
wth
Chart 1.12: Consumer Out-of-pocket Spending vs. Private Health Insurance Spending for Prescription Drugs, 1987 – 2007(1)
Out-of-pocket
Private Health Insurance
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Bill
ions
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
Chart 1.13: Distribution of National Health Expenditures by Source of Payment, 1980, 2000, and 2007(1)
Medicare, 19.2%Medicare, 16.6%Medicare, 14.7%
Total Medicaid, 14.7%Total Medicaid, 14.8%
Total Medicaid, 10.3%
Other Government, 12.3%Other Government, 12.7%Other Government, 17.0%
P rivate Insurance, 34.6%P rivate Insurance, 33.6%
P rivate Insurance, 27.2%
Other P rivate, 7.2%Other P rivate, 8.1%
Other P rivate, 7.9%
Out-of-pocket, 12.0%Out-of-pocket, 14.2%Out-of-pocket, 22.9%
1980 2000 2007
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
$253.4B $2,241.2B$1,353.2B
Chart 1.14: Distribution of Health Insurance Coverage, Percentage of Population Covered by Payer, 1990, 2006, and 2007
3.7%
13.2%
13.8%
15.8%
3.6%
12.9%
4.0%
13.0%
73.2%
15.3%
67.5%
13.6%
67.9%
13.9%
9.7%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Uninsured
Other Government
Medicaid
Medicare
Private
1990 2006 2007
Source: US Census Bureau, Current Population Survey, 2008 Annual and Social Economic Supplement. Data released March 2008. Table HI05. Health Insurance Coverage Status and Type of Coverage by State and Age for All People: 2007. Link: http://pubdb3.census.gov/macro/032008/health/h05_000.htm.
Chart 1.15: Number and Percent Uninsured, 1987 – 2007
0
5
10
15
20
25
30
35
40
45
50
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Num
ber
of U
nins
ured
(M
illio
ns)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Per
cent
of
Tot
al P
opul
atio
n
Number Percent
Source: US Census Bureau, Income, Poverty, and Health Insurance Coverage in the United States: 2007. Data released August2008. Table 6. People Without Health Insurance Coverage by Selected Characteristics: 2006 and 2007. Link:http://www.census.gov/hhes/www/hlthins/hlthin07/p60no235_table6.pdf.
Chart 1.16: Average Percent Uninsured by State, 2005 – 2007
< 10.0%
10.0% - 14.9%
15.0% - 19.9%
20.0%
RI 10.3%DE 11.8%DC 11.4%
Source: US Census Bureau, Income, Poverty, and Health Insurance Coverage in the United States: 2007. Data released August2008. Link: http://www.census.gov/hhes/www/hlthins/hlthin07/p60no235_table8.pdf.
Chart 1.17: Medicare Enrollees,(1) 1988 – 2008
Source: Centers for Medicare & Medicaid Services. Medicare Enrollment: National Trends, 1966 – 2005; Medicare Aged and Disabled Enrollees by Type of Coverage. Link: http://www.cms.hhs.gov/MedicareEnRpts/Downloads/HISMI05.pdf (for years 1988 – 2000). CMS, Office of the Actuary. Email correspondence with CMS staff (for years 2001 – 2008).(1) Hospital insurance (Part A) enrollees and/or Supplementary Medical Insurance (Part B) enrollees; includes all persons (aged and
disabled).
33.0
33.6
34.2
34.9
35.6
36.3
36.9
37.5
38.1
38.4
38.8
39.1
39.7
40.1
40.5
41.2
41.9
42.6
43.4
44.1
44.9
0
5
10
15
20
25
30
35
40
45
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Mill
ions
Chart 1.18: Medicaid Enrollees,(1) 1990, 1995, 2000 – 2007
25.3
36.3
44.548.4
50.9
57.3 58.660.9 60.5
Aged
Blind/Disabled
Children
Adults
Other Title XIX
52.4
0
10
20
30
40
50
60
70
1990 1995 2000 2001 2002 2003 2004 2005 2006 2007
Mill
ion
s
Source: Congressional Budget Office. Data released March 2008. Fact Sheet for CBO’s March 2008 Baseline: Medicaid.Link: http://www.cbo.gov/budget/factsheets/2008b/medicaidBaseline.pdf.(1) Does not include SCHIP Enrollees.
Chart 1.19: National SCHIP Enrollment,(1,2) FY 1999 – FY 2007
1,959,330
3,333,879
4,622,204
5,353,812
5,984,772 6,102,784 6,151,215
6,745,1947,144,794
FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007
Source: Centers for Medicare & Medicaid Services. Data released February 2008. Number of Children Ever Enrolledby Program Type. Link:http://www.cms.hhs.gov/NationalSCHIPPolicy/downloads/SCHIPEverEnrolledYEARFY2007FINAL.PDF.(1) Number of children enrolled at any point in the year.(2) 2006 figure reflects revised data released by Centers for Medicare & Medicaid Services on February 7, 2008.
Chart 1.20: Percent Change in SCHIP Enrollment by State, FY 2006 – FY 2007(1)
Source: Centers for Medicare & Medicaid Services. Data released February 2008. Number of Children Ever Enrolledby Program Type. (1) 2006 figures reflect revised data released by Centers for Medicare & Medicaid Services on February 7, 2008.
RI 2%DE 4%DC 4%
10% - 19%
1% - 9%
0%
20% - 29%
30%
Unknown
0%
20%
40%
60%
80%
100%
1988 1996 1999 2002 2005 2006 2007 2008
Conventional PPO HMO POS HDHP/SO
Chart 1.21: Percentage of Employees with Employer-based Coverage Who Can Choose Conventional, PPO, HMO, POS, and HDHP/SO Plans, 1988 – 2008
(2)
Source: The Kaiser Family Foundation and Health Research and Educational Trust. Data Released 2008. Employer Health Benefits: 1999, 2002, 2005, 2006, 2007, 2008. Link: http://ehbs.kff.org/pdf/7790.pdf. KPMG Survey of Employer-Sponsored Health Benefits: 1988, 1996. (1) Conventional plans refer to traditional indemnity plans.(2) Point-of-service plans not separately identified in 1988. (3) In 2006, the survey began asking about HDHP/SO, high deductible health plans with a savings option.
(3)(1)
Chart 1.22: Distribution of Employer-sponsored Health Insurance Enrollment by Type of Plan, 1988 – 2008
The Kaiser Family Foundation and Health Research and Educational Trust. Data Released 2008. Employer Health Benefits: 1999, 2002, 2005, 2006, 2007, 2008. Link: http://ehbs.kff.org/pdf/7790.pdf. KPMG Survey of Employer-Sponsored Health Benefits: 1988, 1996.(1) Conventional plans refer to traditional indemnity plans.(2) Point-of-service plans not separately identified in 1988. (3) In 2006, the survey began asking about HDHP/SO, high deductible health plans with a savings option.
Conventional
PPO
HMO
POS
HDHP/SO
0%
20%
40%
60%
80%
100%
1988 1996 1999 2002 2005 2006 2007 2008
(2)
(3)
(1)
Chart 1.23: Percentage of Medicare Beneficiaries Enrolled in Medicare Managed Care,1991 – 2008
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Email correspondence with CMS staff in January 2009.
4% 4%
5%
6%
8%
10%
13%
16% 17
%
17%
15%
13%
12%
12% 13
%
16%
20%
23%
0%
3%
6%
9%
12%
15%
18%
21%
24%
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Per
cent
age
of B
enef
icia
ries
Chart 1.24: Percent Growth in Medicare Spending per Beneficiary vs. Private Health Insurance Spending per Enrollee, 1987 – 2007(1,2)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 6, 2009.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data that are
applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.
(2) Data reflects spending on benefits commonly covered by Medicare and Private Health Insurance.
Private Health Insurance
Medicare
Chart 1.25: Percentage of Medicaid Beneficiaries Enrolled in Medicaid Managed Care, 1992 – 2007
12% 14%
23%
29%
40%
48%
54% 56% 56% 57% 58% 59%63% 65% 64%
61%
0%
10%
20%
30%
40%
50%
60%
70%
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Per
cent
age
of B
enef
icia
ries
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Medicaid Managed Care Enrollment Report as of June 30, 2007. Data for 2007 updated per correspondence with CMS in September 2008.
Chart 1.26: Percentage of Medicaid Beneficiaries Enrolled in Medicaid Managed Care by State, 2007
25% - 49%
50% - 74%
75% - 100%
1% - 24%
0%
RI 63.1%DE 66.9%DC 64.7%
Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Medicaid Managed Care Enrollment Report as of June 30, 2007. Data for 2007 updated per email correspondence with CMS in September 2008.
Chart 1.27: Annual Change in Health Insurance Premiums for Family Coverage, 1999 – 2008
11.2%
9.7%
13.3% 13.3%
9.7% 9.4%
5.5% 5.5%4.7%
0%
4%
8%
12%
16%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Ann
ual P
erce
nt C
hang
e
Source: The Kaiser Family Foundation and Health Research and Educational Trust. Data Released 2008. Employer Health Benefits: 2008. Link: http://ehbs.kff.org/pdf/7790.pdf.
Chart 1.28: HMO Plan Median Operating Margins, 1990 – 2006
Source: Health Leaders-Interstudy, The Health Leaders-Interstudy Competitive Edge: Part II: Managed CareIndustry Report, using data as of January 1, 2007.
2.1% 2.2%2.5% 2.4%
1.2%
-0.9%
-3.5% -3.5%
-1.3%
-0.6%
1.2%
2.8%
3.5%
2.7% 2.7%
-0.05%
2.1%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
Med
ian
Ope
ratin
g M
argi
n
Chart 1.29: Operating Margins of the Top Insurers, 2005 – 2007
Source: Hoovers. Data for all years updated as of February 2009. Link: www.hoovers.com.
0%
2%
4%
6%
8%
10%
12%
14%
Aetna WellPoint UnitedHealthGroup
Cigna Humana
Op
era
ting
Ma
rgin
2005 2006 2007
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