v e r m o n t legislative joint fiscal office growth in health care spending: a comparison of...
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![Page 1: V e r m o n t Legislative Joint Fiscal Office Growth in Health Care Spending: A comparison of Vermont and the U.S. Nolan Langweil, Legislative Joint Fiscal](https://reader035.vdocuments.us/reader035/viewer/2022070305/5515690255034685568b5e11/html5/thumbnails/1.jpg)
V e r m o n tLegislative Joint Fiscal Office
Growth in Health Care Spending:A comparison of Vermont and the U.S.
Nolan Langweil, Legislative Joint Fiscal Office
January 18, 2008
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V e r m o n tLegislative Joint Fiscal Office
Data
• CMS, Office of the Actuary (2006 data)
• BISHCA, Expenditure Analysis (2006 data)– Note: FY2005 and earlier uses unadjusted numbers
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V e r m o n tLegislative Joint Fiscal Office
UNITED STATES
$7,092 Per Capita
VERMONT
$6,321 Per Capita
Per Capita Spending2006
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V e r m o n tLegislative Joint Fiscal Office
Trends in Growth: 1996-2006
UNITED STATES
• ↑ from $910B to $1.76T• 6.8% average annual
growth
VERMONT
• ↑ from $1.7B to $3.9B• 8.6% average annual
growth
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V e r m o n tLegislative Joint Fiscal Office
Trends in Growth: 1996-2006
Overall health care expenditure trends for Vermont and the U.S. are fairly comparable.
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V e r m o n tLegislative Joint Fiscal Office
Trends in Growth: 1996-2006
1) Hospital care2) Physicians & Clinical svcs3) Drugs & Supplies
1) Hospital care2) Physicians & Clinical svcs3) Drugs & Supplies
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V e r m o n tLegislative Joint Fiscal Office
Growth when comparing third-party payer by sector(EXCLUDES DRUGS)
Trends in Growth: 1996-2006
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V e r m o n tLegislative Joint Fiscal Office
Growth when comparing third-party payer by sector(INCLUDES DRUGS)
Trends in Growth: 1996-2006
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V e r m o n tLegislative Joint Fiscal Office
PAYER$(By % of total expenditures)
U.S PAYER VERMONT
21.6% Medicare 18.1%
16.2% Medicaid 23.7%
14.6% Out-of-pocket 12.5%
36.0% Private Insurance (total)
41.4
Other payers include: State & Local, Other Federal, etc.
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V e r m o n tLegislative Joint Fiscal Office
MEDICARETrends in Growth: 1996-2006
• Largest single payer of health care services in the U.S.– 21% of personal health care spending– Medicaid was second largest (16%)
• 2nd largest payer in Vermont– 18% of health spending– Medicaid was largest (24%)
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V e r m o n tLegislative Joint Fiscal Office
MEDICARETrends in Growth: 1996-2006
• Both US and VT: Largest increase in $ spent were in 1) Hospital care, 2) physician & clinical svs and 3) Drugs (in that order)
Combined they represent:– US = 84% of total Medicare Spending– VT = 77% of total Medicare Spending– Hospital Care accounted for half of Medicare
spending in both VT and the U.S.
2006
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V e r m o n tLegislative Joint Fiscal Office
MEDICAREDrugs as % of overall Medicare spending:
2005 2006
U.S. 1.2%($4B)
10.3%($39.4B)
VT <1%($4,000)
11%(78.8M)
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V e r m o n tLegislative Joint Fiscal Office
MEDICAREMedicare Part D
Before Part D After Part D
Overall Spending on DRUGS by Payer (Vermont):
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V e r m o n tLegislative Joint Fiscal Office
MEDICAREMedicare Part D
Medicaid & Out-of-pocket drug spending saw decreases
2005 2006
MEDICAID VT = $146M
US = $37B
VT* = $78M
US = $19B
OUT-OF-POCKET
VT = $191M
US = $48.7B
VT = $168M
US = $47.6B
*NOTE: This does not include clawback.
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V e r m o n tLegislative Joint Fiscal Office
MEDICAID2006
United States• Medicaid spending decreased by 0.9%• First drop in Medicaid spending since program
was created in 1965• Exclude Drugs, and Medicaid PHC spending ↑
5.6%– Still slower than 8% in 2005
• 10 yr avg growth (1996-2006) = 7.1%
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V e r m o n tLegislative Joint Fiscal Office
MEDICAID2006
Vermont• 10 yr avg growth (1996-2006) = 9.6%• Medicaid spending increased by 2%
– Down from 7% growth in 2005• Drug spending decreased 44% from 2005
– Again exclude Drugs, and Medicaid spending ↑ 11%
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V e r m o n tLegislative Joint Fiscal Office
MEDICAID2006
Vermont (continued)• In 2005, Drug spending was 16.9% of
Medicaid costs ($146M)• In 2006, Drug spending was 8.4% of
Medicaid costs ($78.7M)• Does not include add’l $15.8M “state &
local” spending on drugs
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V e r m o n tLegislative Joint Fiscal Office
PRIVATE HEALTH INSURANCE2006
• U.S. - spending ↑ $598.6B to 634.5B– 6% increase (2005 to 2006)– 7.7% - 10 yr avg annual growth (1996-2006)– 36% of personal health care spending
• VT - spending ↑ $1.4 to 1.6B– 16% increase (2005 to 2006)– 9.1% average annual growth– 41% of health care spending
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V e r m o n tLegislative Joint Fiscal Office
Insurance Premiums (2006)From:
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V e r m o n tLegislative Joint Fiscal Office
QUESTIONS?