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Congressional Budget Office The Medicare Advantage Program July 16, 2007

Congressional Budget Office

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Congressional Budget Office. The Medicare Advantage Program July 16, 2007. Total Federal Spending for Medicare and Medicaid Under Assumptions About the Health Cost Growth Differential. Percent of Gross Domestic Product. Recent Enrollment in Medicare Advantage and Other Group Health Plans. - PowerPoint PPT Presentation

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Page 1: Congressional Budget Office

Congressional Budget Office

The Medicare Advantage Program

July 16, 2007

Page 2: Congressional Budget Office

Total Federal Spending for Medicare and Medicaid Under Assumptions About the Health Cost Growth Differential

1966 1972 1978 1984 1990 1996 2002 2008 2014 2020 2026 2032 2038 2044 2050

0

5

10

15

20

25Actual Baseline

Projection

2.5 Percentage Points

1 Percentage Point

Zero

Differential of:

Percent of Gross Domestic Product

Page 3: Congressional Budget Office

Recent Enrollment in Medicare Advantage and Other Group Health Plans

Additions

Total, Dec. 2005

During 2006

During 2007

Total, June 2007

Medicare Advantage

Local HMOs and PPOs 5,160 840 190 6,190

Private fee for service 210 660 720 1,590

Regional PPOs 0 100 60 160

Total for All

Group Health Plans 6,120 1,470 960 8,560

Page 4: Congressional Budget Office

Enrollment in Medicare Advantage as a Percentage of Enrollment in Medicare

Percentage of Part A Enrollment

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

0

5

10

15

20

25

30

PFFS Plans

HMOs and PPOs

Page 5: Congressional Budget Office

Estimated Budgetary Effects of Policies Capping the Benchmarks under the Medicare Advantage Program

Source: Dartmouth Atlas of Health Care.

Limit on MA

Benchmarks as a Change in Direct Spending (Billions of dollars)Percentage of FFS Costs 2008–2012 2008–2017

100 -54 -149

110 -32 -90

120 -15 -42

130 -6 -18

140 -2 -7

150 -2 -4

Page 6: Congressional Budget Office

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

Source: Dartmouth Atlas of Health Care.

$7,000$7,000 to to 11,35211,352 (63)(63)

6,5006,500 to < to < 7,0007,000 (53)(53)

6,0006,000 to < to < 6,5006,500 (56)(56)

5,5005,500 to < to < 6,0006,000 (64)(64)

4,2724,272 to < to < 5,5005,500 (70)(70)

Not PopulatedNot Populated

www.dartmouthatlas.org