Massachusetts Medicinal services Cost Patterns Authentic (1991-2004) and Anticipated (2004–2020) November 2009.


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Massachusetts Human services Cost Patterns Verifiable (1991-2004) and Anticipated (2004–2020) November 2009. Deval L. Patrick, Senator Province of Massachusetts Timothy P. Murray Lieutenant Representative. JudyAnn Bigby, Secretary Official Office of Wellbeing and Human Administrations
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Massachusetts Health Care Cost Trends Historical (1991-2004) and Projected (2004–2020) November 2009 Deval L. Patrick, Governor Commonwealth of Massachusetts Timothy P. Murray Lieutenant Governor JudyAnn Bigby, Secretary Executive Office of Health and Human Services Sarah Iselin, Commissioner Division of Health Care Finance and Policy

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Table of Contents Executive Summary…………………………………………………………………………………………………………………………………………..……………2 Data sources and Methodology……………………………………………………………………………………………………………………………………….3 Trends in Health Care Expenditures……………………………………………………………………………………………………………………………….4 Trends in Health Insurance Premiums……………………………………………………………………………………………………………… ……….10 Projected Trends in Health Care Spending through 2020………….……………….……………………………………………………………..17 Potential Savings if Growth Rate Reduced to GDP………………………………..……………….…………………………………………………..22

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Executive Summary Focus of this Analysis To assess the verifiable patterns in medicinal services uses in Massachusetts and task future patterns (accepting no expense control mediation). National patterns are given as a benchmark to correlation. To assess the potential reserve funds if cost regulation endeavors keep the development of medicinal services uses to the same level according to capita GDP. To look at the development of wellbeing protection premiums in respect to the development of human services uses. Significant Findings We spend more on social insurance in Massachusetts contrasted with the U.S. Human services uses represent a bigger and developing offer of the GDP contrasted with the national normal in 2007. By 2007, human services uses are relied upon to represent 15.2% of GDP in Massachusetts contrasted with 13.7% for the country. Doctor\'s facility based consumptions are an essential driver of higher medicinal services costs in Massachusetts . Healing center based uses represent one-a large portion of the contrast in the middle of Massachusetts and U.S. per capita social insurance spending in 2004. Medicare and Medicaid offer of wellbeing spending in Massachusetts developed from 36% to 38% from 1991 to 2004. In 2004, Medicare spending was $7.9 billion and Medicaid spending was $8.3 billion. The development in job based wellbeing protection premiums in Massachusetts was fairly quicker and more unpredictable than the development in human services consumptions. In 2007 both family and single premiums were higher in Massachusetts contrasted with the U.S., by 12% and 10%, separately. Starting in 2002, human services consumptions in Massachusetts (both genuine and anticipated) became more quickly than other monetary markers, for example, compensation, buyer costs, and per capita GDP. By 2020, medicinal services uses per capita in Massachusetts are relied upon to be 4.5 times what they were in 1991, while the CPI is anticipated to be only more than twofold. Social insurance in Massachusetts is anticipated to cost $3,000 more per individual by 2018 contrasted with the U.S. normal. Amid 2004-2018, contrasted with the national normal, Massachusetts is anticipated to have a higher yearly development rate in per capita social insurance consumptions, coming to about $16,000 per individual in 2018. U.S. human services spending is anticipated to reach about $13,000 per individual by 2018. On the off chance that cost regulation endeavors are effective, potential investment funds could be as high as $91 billion more than 10 years. In the event that cost regulation endeavors result in a development\'s abating of social insurance consumptions to the same development rate according to capita GDP (3.9%), the potential yearly reserve funds would be near $3,000 per capita for an aggregate amassed investment funds of $91 billion more than 10 years.

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Data Sources and Methodology Major Data Sources Health Care Spending Massachusetts Data: Center for Medicare & Medicaid Services (CMS), Office of the Actuary, National Health Statistics Group, State Health Expenditure Accounts (SHEA), “Massachusetts Personal Health Care Expenditures (PHCE), All Payers, State of Residence, 1991-2004," 2007. U.S. Information: Center for Medicare & Medicaid Services (CMS), Office of the Actuary, National Health Statistics Group, “National Health Expenditures by Type of Service and Source of Funds, 1960-2007," 2009. U.S. Projections: “National Health Expenditure Projections 2007-2017," 2009. Massachusetts Population: Population projections in light of U.S. Evaluation Bureau, Population Division, Interim State Population Projections, 2005. Wellbeing Insurance Premiums 1996-2006 and 2008:Agency for Healthcare Research and Quality (AHRQ), Medical Expenditure Panel Survey-Insurance Component (MEPS-IC) , wellbeing protection premiums per enlisted worker at private-area foundations that offer wellbeing protection. 2007 premiums are evaluated utilizing the normal of 2006 and 2008 premiums. System Used for Cost Projection The yearly development rate of per capita wellbeing uses in Massachusetts for 2004-2010 is expected to keep the same normal yearly development rate of 7.4% experienced in 2000-2004. This is accepted on the grounds that in the short run, patterns are liable to keep the same energy as the latest yearly patterns. The yearly development rate of per capita wellbeing consumptions in Massachusetts for 2010-2020 is thought to be at the lower normal yearly development rate of 5.7% experienced in the more extended time of 1991-2004 in Massachusetts. This mirrors an all the more relentless state slant that the state is prone to come back to in the more extended term. Downright medicinal services consumptions is ascertained taking into account anticipated per capita wellbeing uses increased by aggregate populace in Massachusetts. Anticipated populace originates from U.S. Evaluation Bureau, Population Division, Interim State Population Projections, 2005, which calculates movement patterns. Projections for U.S. social insurance expense patterns come specifically from the Centers for Medicare and Medicaid Services (CMS).

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Trends in Health Care Expenditures

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Annual Growth Rate of MA Per Capita Health Spending Tracked U.S. however, Generally Grew Faster After 2000 Annual Rate of Change in Per Capita Health Expenditures in MA and U.S., 1992-2007 Note: Health uses are characterized by living arrangement area and as individual wellbeing consumptions by CMS, which reject uses on organization, general wellbeing, and development. Information for Massachusetts are just accessible through 2004. 2005, 2006, and 2007 development rates for MA are anticipated. Source: Centers for Medicare & Medicaid Services (CMS), Office of the Actuary, National Health Statistics Group, 2007.

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Per Capita Health Spending Increased from 23% Higher in MA Than U.S. in 1991 to 27% Higher in 2004 Ratio of Health Expenditures Per Capita in MA and U.S., 1991-2004 Note: The wellbeing uses are characterized by living arrangement area and as individual wellbeing uses by CMS, which reject consumptions on organization, general wellbeing, and development. Source: Centers for Medicare & Medicaid Services (CMS), Office of the Actuary, National Health Statistics Group, 2007.

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MA Health Care Expenditures Are Higher than U.S. what\'s more, Represent a Growing Share of the Economy Health Expenditures in MA and U.S., 2000 and 2007 65% 54% Note: Health consumptions are characterized by living arrangement area and as individual wellbeing uses by CMS, which prohibit uses on organization, general wellbeing, and development. Information for Massachusetts are anticipated for 2007. Source: Centers for Medicare & Medicaid Services (CMS), Office of the Actuary, National Health Statistics Group, 2009.

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Hospital-Based Expenditures Account for Half of the Difference Between MA and U.S. Per Capita Spending Health Expenditures Per Capita by Services in MA and U.S., 2004 Per capita doctor\'s facility based uses were 36% higher in Massachusetts contrasted with the U.S. Nursing home s

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