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The Facts on Medicare Spending and Financing

Issue Brief
  1. Author’s calculations based on Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group, National Health Expenditures Tables, Table 4: National Health Expenditures by Source of Funds and Type of Expenditures: Calendar Years 2008-2014 (December 2015).

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  2. 2016 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds, June 22, 2016, available at https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/ReportsTrustFunds/index.html.

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  3. Congressional Budget Office (CBO), March 2016 Medicare Baseline, March 24, 2016, available at https://www.cbo.gov/sites/default/files/51302-2016-03-Medicare.pdf.

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  4. Gretchen Jacobson, Giselle Casillas Anthony Damico, Tricia Neuman, and Marsha Gold, "Medicare Advantage 2016 Spotlight: Enrollment Market Update," Kaiser Family Foundation, May 2016, available at http://kff.org/medicare/issue-brief/medicare-advantage-2016-spotlight-enrollment-market-update/.

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  5. Sean Keehan, et al. “National Health Expenditure Projections, 2015-25: Economy, Prices, and Aging Expected to Shape Spending and Enrollment,” Health Affairs, published online July 13, 2016.

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  6. For a more detailed discussion of these and other factors, see Chapin White, Juliette Cubanski, and Tricia Neuman, How Much of the Medicare Spending Slowdown Can Be Explained? Insights and Analysis from 2014, Kaiser Family Foundation, December 2014, available at http://kff.org/medicare/issue-brief/how-much-of-the-medicare-spending-slowdown-can-be-explained-insights-and-analysis-from-2014/.

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  7. Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group, National Health Expenditures Tables, Table 21: Expenditures, Enrollment and Per Enrollee Estimates of Health Insurance: United States, Calendar Years 1987-2014 (December 2015).

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  8. CBO, March 2016 Medicare Baseline.

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  9. CBO, The 2016 Long-Term Budget Outlook, July 2016, available at https://www.cbo.gov/publication/51580.

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  10. CBO defines excess cost growth as the extent to which the growth of health care costs per beneficiary, adjusted for demographic changes, exceeds the growth of potential GDP per person.

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  11. CBO, The 2016 Long-Term Budget Outlook, July 2016, Figure 1.5.

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  12. CBO, The 2016 Long-Term Budget Outlook, July 2016, Figure 3.2.

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  13. The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) (Public Law 114-10) is a law to repeal and replace Medicare’s Sustainable Growth Rate (SGR) formula which will establish new payment systems designed to reward quality over quantity of physician services.

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  14. For details, see Congressional Research Service, The Independent Payment Advisory Board (IPAB): Frequently Asked Questions, October 30, 2015.

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  15. CBO, March 2016 Medicare Baseline.

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  16. The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) (Public Law 114-10) is a law to repeal and replace Medicare’s Sustainable Growth Rate (SGR) formula which will establish new payment systems designed to reward quality over quantity of physician services.

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  17. Kaiser Family Foundation, Policy Options to Sustain Medicare for the Future, January 2013, available at http://kff.org/medicare/report/policy-options-to-sustain-medicare-for-the-future/.

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