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TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

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Page 1: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent
Page 2: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

TABLE OF CONTENTS

CHAPTER 1.0: Trends in the Overall Health Care Market

Chart 1.1: Total National Health Expenditures, 1980 – 2010

Chart 1.2: Percent Change in Total National Health Expenditures, 1990 – 2010

Chart 1.3: Per Capita National Health Expenditures, 1980 – 2010

Chart 1.4: National Health Expenditures as a Percentage of Gross Domestic Product, 1990 – 2010

Chart 1.5: National Expenditures for Health Services and Supplies by Category, 1980 and 2010

Chart 1.6: Percent Change in National Expenditures for Health Services and Supplies by Category, 2009 – 2010

Chart 1.7: Percent Change in National Expenditures for Selected Health Services and Supplies, 2000 – 2010

Chart 1.8: National Health Expenditures, 1980 – 2020

Chart 1.9: Consumer Out-of-pocket Payments for National Health Expenditures, 1990 – 2010

Chart 1.10: Total Prescription Drug Spending, 1980 – 2010

Chart 1.11: Growth in Total Prescription Drug Spending as a Percentage of Total Growth in National Health Expenditures, 1990 – 2010

Chart 1.12: Consumer Out-of-pocket Spending vs. Private Health Insurance Spending for Prescription Drugs, 1990 – 2010

Chart 1.13: Distribution of National Health Expenditures by Source of Payment, 1980, 2000, and 2010

Chart 1.14: Distribution of Health Insurance Coverage, Percentage of Population Covered by Payer, 1990, 2009, and 2010

Chart 1.15: Number and Percent Uninsured, 1990 – 2010

Page 3: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

TABLE OF CONTENTS

CHAPTER 1.0: Trends in the Overall Health Care Market

Chart 1.16: Average Percent Uninsured by State, 2008 – 2010

Chart 1.17: Medicare Enrollees, 1991 – 2011

Chart 1.18: Medicaid Enrollees, 1990, 1995, 2000 – 2011

Chart 1.19: National CHIP Enrollment, FY 1999 – FY 2010

Chart 1.20: Percent Change in CHIP Enrollment By State, FY 2009 – FY 2010

Chart 1.21: Percentage of Employees with Employer-based Coverage Who CanChoose Conventional, PPO, HMO, POS, and HDHP/SO Plans, 1988 – 2011

Chart 1.22: Distribution of Employer-sponsored Health Insurance Enrollment by Type of Plan, 1988 – 2011

Chart 1.23: Percentage of Medicare Beneficiaries Enrolled in Medicare Managed Care, 1991 – 2011

Chart 1.24: Percent Growth in Medicare Spending per Beneficiary vs. Private Health Insurance Spending per Enrollee, 1990 – 2010

Chart 1.25: Percentage of Medicaid Beneficiaries Enrolled in Medicaid Managed Care, 1992 – 2010

Chart 1.26: Percentage of Medicaid Beneficiaries Enrolled in Medicaid Managed Care by State, 2010

Chart 1.27: Annual Change in Health Insurance Premiums, 2000 – 2011

Chart 1.28: Managed Care Plan Median Operating Margins, 1997 – 2011

Chart 1.29: Operating Margins of the Top Insurers, 2009 – 2011

Page 4: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

$200

$700

$1,200

$1,700

$2,200

$2,700

$3,200

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 08 09 10

Bill

ions

Inf lation Adjusted(2)

Chart 1.1: Total National Health Expenditures, 1980 – 2010(1)

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

(2) Expressed in 1980 dollars; adjusted using the overall Consumer Price Index for Urban Consumers.

Page 5: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.2: Percent Change in Total National Health Expenditures, 1990 – 2010 (1)

11.9

%

9.3%

8.4%

7.4%

5.6%

5.6%

5.3% 5.6%

5.8% 6.4% 7.0%

8.5% 9.

5%

8.4%

7.1%

6.8%

6.6%

6.2%

4.7%

3.8%

3.9%

0%

5%

10%

15%

20%

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Per

cent

Cha

nge

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

Page 6: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.3: Per Capita National Health Expenditures, 1980 – 2010(1)

Inflation Adjusted(2)

$200

$1,200

$2,200

$3,200

$4,200

$5,200

$6,200

$7,200

$8,200

$9,200

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 08 09 10

Per

Cap

ita A

mou

nt

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

(2) Expressed in 1980 dollars; adjusted using the overall Consumer Price Index for Urban Consumers.

Page 7: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.4: National Health Expenditures as a Percentage of Gross Domestic Product, 1990 – 2010(1)

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

12.5

%

13.2

%

13.5

%

13.8

%

13.7

%

13.9

%

13.8

%

13.7

%

13.7

%

13.8

%

13.8

%

14.5

%

15.4

%

15.9

%

16.0

%

16.1

%

16.2

%

16.4

%

16.8

%

17.9

%

17.9

%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Per

cent

age

of G

DP

Page 8: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.5: National Expenditures for Health Services and Supplies(1) by Category, 1980 and 2010(2)

Hospital Care, 42.6% Hospital Care, 33.3%

Physician Services, 20.2%Physician Services, 21.1%

Other Professional,(4) 7.2%

Other Professional,(4) 7.1%

Home Health Care, 1.0%

Home Health Care, 2.9%

Prescription Drugs, 5.1%Prescription Drugs, 10.6%

Other Medical Durables and Non-durables, 5.9% Other Medical Durables and

Non-durables, 3.3%

Nursing Home Care, 6.5%Nursing Home Care, 5.9%

Other,(3) 11.5% Other,(3) 15.8%

1980 2010Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) Excludes medical research and medical facilities construction.(2) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.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.

$235.7B $2,444.6B

Page 9: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

6.2%7.2%

1.2%

4.9%

6.4%

2.5% 2.8% 3.2%

4.7%All Health Services & Supplies, 4.0%

-3%

-1%

1%

3%

5%

7%

9%

Home Health Care

Admin. & Net Cost of Private

Health Insurance

Prescription Drugs

Hospital Care Other Physician Services

Other Professional

Nursing Home Care

Other Medical Durables and Non-durables

Pe

rce

nt C

ha

ng

eChart 1.6: Percent Change in National Expenditures for Health Services and Supplies(1) by Category, 2009 – 2010(2)

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) Excludes medical research and medical facilities construction.(2) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.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)

Page 10: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.7: Percent Change in National Expenditures for Selected Health Services and Supplies, 2000 – 2010(1)

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

Hospital Care

Prescription DrugsAdmin. & Net Cost of Private

Health Insurance

Home Health Care

Nursing Home Care

-5%

0%

5%

10%

15%

20%

25%

00 01 02 03 04 05 06 07 08 09 10

Per

cent

Cha

nge

Page 11: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.8: National Health Expenditures,(1) 1980 – 2021(2)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

80 90 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

Bill

ions

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released June 2012.(1) Years 2011 – 2021 are projections.(2) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

Page 12: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.9: Consumer Out-of-pocket Payments for National Health Expenditures, 1990 – 2010(1)

$0

$40

$80

$120

$160

$200

$240

$280

$320

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Bill

ions

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

Page 13: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.10: Total Prescription Drug Spending, 1980 – 2010(1)

Inflation Adjusted(2)

$0

$40

$80

$120

$160

$200

$240

$280

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 08 09 10

Bill

ions

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

(2) Expressed in 1980 dollars; adjusted using the overall Consumer Price Index for All Urban Consumers.

Page 14: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.11: Growth in Total Prescription Drug Spending as a Percentage of Total Growth in National Health Expenditures, 1990 – 2010(1)

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

0%

5%

10%

15%

20%

25%

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Per

cent

age

of T

otal

Gro

wth

Page 15: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.12: Consumer Out-of-pocket Spending vs. Private Health Insurance Spending for Prescription Drugs, 1990 – 2010(1)

Out-of -pocket

Private Health Insurance

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$110

$120

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Bill

ions

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

Page 16: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.13: Distribution of National Health Expenditures by Source of Payment, 1980, 2000, and 2010(1)

Medicare, 14.6% Medicare, 16.3% Medicare, 20.2%

Total Medicaid, 10.2%Total Medicaid, 14.8%

Total Medicaid, 16.0%Other Government, 17.5%

Other Government, 14.5%Other Government, 13.8%

Private Insurance, 27.0%

Private Insurance, 33.4% Private Insurance, 32.7%Other Private, 7.9%

Other Private, 6.3%Other Private, 5.7%

Out-of-pocket, 22.8%Out-of-pocket, 14.7% Out-of-pocket, 11.6%

1980 2000 2010

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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.gov/nationalhealthexpenddata/downloads/benchmark2009.pdf.

$255.8B $2,593.6B$1,377.2B

Page 17: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.14: Distribution of Health Insurance Coverage, Percentage of Population Covered by Payer, 1990, 2009, and 2010

16.3%

4.2%

15.9%

14.5%

64.0%

16.7%

4.1%

15.7%

14.3%

63.9%

13.9%

4.0%

9.7%

13.0%

73.2%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Uninsured

Other Government

Medicaid

Medicare

Private

1990 2009 2010

Source: US Census Bureau, Current Population Survey, 2011 Annual and Social Economic Supplement. Data released February 2011. Table HIB-4. Health Insurance Coverage Status and Type of Coverage by State All People: 1999 to 2010.Link: http://www.census.gov/hhes/www/hlthins/data/historical/files/hihistt4B.xls.

Page 18: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.15: Number and Percent Uninsured, 1990 – 2010

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

5

10

15

20

25

30

35

40

45

50

55

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Per

cent

of

Tot

al P

opul

atio

n

Num

ber

of U

nins

ured

(M

illio

ns)

Number Percent

Source: US Census Bureau, Income, Poverty, and Health Insurance Coverage in the United States: 2010. Data released August2011. Table 8. People Without Health Insurance Coverage by Selected Characteristics: 2009 and 2010. Link: http://www.census.gov/hhes/www/hlthins/data/incpovhlth/2010/table8.pdf.

Page 19: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.16: Average Percent Uninsured by State, 2008 – 2010

< 10.0%

10.0% - 14.9%

15.0% - 19.9%

20.0%

RI 11.5%DE 11.7%DC 11.4%

Source: US Census Bureau, Income, Poverty, and Health Insurance Coverage in the United States: 2010. Data released August2011. Link: http://www.census.gov/hhes/www/hlthins/data/incpovhlth/2010/state.xls.

Page 20: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.17: Medicare Enrollees,(1) 1991 – 2011

Source: Centers for Medicare & Medicaid Services. Medicare Enrollment: National Trends, 1966 – 2005; Medicare Aged and Disabled Enrollees by Type of Coverage. CMS, Office of the Actuary. Email correspondence with CMS staff (for years 2001 – 2011).(1) Hospital insurance (Part A) enrollees and/or Supplementary Medical Insurance (Part B) enrollees; includes all persons (aged and

disabled).

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

44.4

45.5

46.6

47.7

48.7

0

5

10

15

20

25

30

35

40

45

50

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Mill

ions

Page 21: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.18: Medicaid Enrollees,(1) 1990, 1995, 2000 – 2011

Aged

Blind/Disabled

Children

Adults

Other Title XIX

25.3

36.3

44.548.4

50.9 52.457.3 58.6 60.9 60.5 62.1

67.8 67.7 69.5

0

10

20

30

40

50

60

70

80

1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

ion

s

Source: Congressional Budget Office. Data released February 2011. Spending and Enrollment Detail for CBO’s March 2011 Baseline: Medicaid. Link: http://www.cbo.gov/budget/factsheets/2011b/medicaid.pdf. (1) Does not include CHIP Enrollees.

Page 22: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.19: National CHIP Enrollment,(1, 2) FY 1999 – FY 2010

1,959,330

3,333,879

4,622,204

5,353,812 5,984,772 6,102,784 6,151,215

6,745,1947,097,584

7,355,7467,695,264 7,705,723

FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Source: Centers for Medicare & Medicaid Services. Data released February 2011. Number of Children Ever Enrolledby Program Type. Link: http://www.cms.hhs.gov/NationalCHIPPolicy/downloads/CHIPEverEnrolledYearGraph.pdf.(1) Number of children enrolled at any point in the year.(2) 2009 figure reflects revised data released by Centers for Medicare & Medicaid Services on February 1, 2011.

Page 23: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.20: Percent Change in CHIP Enrollment by State, FY 2009 – FY 2010(1)

Source: Centers for Medicare & Medicaid Services. Data released February 2011. Number of Children Ever Enrolledby Program Type. Link: http://www.cms.gov/NationalCHIPPolicy/downloads/FY2010StateCHIPTotalTable_020111_FINAL.pdf.(1) 2009 figure reflects revised data released by Centers for Medicare & Medicaid Services on February 1, 2011.

RI 19%DE 2%DC -13%

10% - 19%

1% - 9%

<0%

20% - 29%

30%

Page 24: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

0%

20%

40%

60%

80%

100%

1988 1996 1999 2002 2005 2006 2007 2008 2009 2010 2011

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 – 2011

(2)

Source: The Kaiser Family Foundation and Health Research and Educational Trust. Data Released 2011. Employer Health Benefits: 1999, 2002, 2005, 2006, 2007, 2008, 2009, 2010, 2011. Link: http://ehbs.kff.org/pdf/2011/8225.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)

Page 25: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.22: Distribution of Employer-sponsored Health Insurance Enrollment by Type of Plan, 1988 – 2011

Conventional

PPO

HMO

POS

HDHP/SO

0%

20%

40%

60%

80%

100%

1988 1996 1999 2002 2005 2006 2007 2008 2009 2010 2011

(2)

(3)

(1)

Source: The Kaiser Family Foundation and Health Research and Educational Trust. Data Released 2011. Employer Health Benefits: 1999, 2002, 2005, 2006, 2007, 2008, 2009, 2010, 2011. Link: http://ehbs.kff.org/pdf/2011/8225.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.

Page 26: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.23: Percentage of Medicare Beneficiaries Enrolled in Medicare Managed Care,1991 – 2011

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Email correspondence with CMS staff in January 2012.

4% 4%

5%

6%

8%

10%

13%

16% 17

%

17%

15%

13%

12%

12% 13

%

17%

20% 22

% 24% 25

%

25%

0%

3%

6%

9%

12%

15%

18%

21%

24%

27%

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Per

cent

age

of B

enef

icia

ries

Page 27: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.24: Percent Growth in Medicare Spending per Beneficiary vs. Private Health Insurance Spending per Enrollee, 1990 – 2010(1,2)

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 9, 2012.(1) CMS completed a benchmark revision in 2009, 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/tables.pdf.

(2) Data reflects spending on benefits commonly covered by Medicare and Private Health Insurance.

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Private Health Insurance

Medicare

Page 28: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.25: Percentage of Medicaid Beneficiaries Enrolled in Medicaid Managed Care, 1992 – 2010

12% 14%

23%29%

40%

48%54% 56% 56% 57% 58% 59%

61%63% 65% 64%

71% 72% 71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

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, 2010.

Page 29: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.26: Percentage of Medicaid Beneficiaries Enrolled in Medicaid Managed Care by State, 2010

25% - 49%

50% - 74%

75% - 100%

1% - 24%

0%

RI 67.4%DE 77.4%DC 69.7%

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Medicaid Managed Care Enrollment Report as of June 30, 2010.

Page 30: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.27: Annual Change in Health Insurance Premiums, 2000 – 2011

11.2%

9.7%

13.3% 13.3%

9.7% 9.4%

5.5% 5.5%4.7%

5.5%

3.0%

9.5%

0%

4%

8%

12%

16%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Ann

ual P

erce

nt C

hang

e

Source: The Kaiser Family Foundation and Health Research and Educational Trust. Data Released 2011. Link: http://ehbs.kff.org/pdf/2011/8225.pdf.

Page 31: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.28: Managed Care Plan Median Operating Margins,(1) 1997 – 2011

Source: Company documents of publicly traded managed care plans.(1) Represents earnings before interest and taxes over net revenues for the total service lines of the11 largest publicly traded managed care plans.

4.9%4.4%

3.8% 3.9%

4.9%

5.8%

6.9%

7.8%

6.6%7.1%

7.5%

5.6%5.0%

6.3% 6.5%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Med

ian

Ope

ratin

g M

argi

ns

Page 32: TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2010 Chart 1.2: Percent

Chart 1.29: Operating Margins of the Top Insurers, 2009 – 2011

Source: FactSet Research Systems Inc. Data for all years updated as of March 2012. Data from Hoovers used in 2011 and earlier years’ Chartbooks.

0%

2%

4%

6%

8%

10%

12%

14%

Aetna WellPoint UnitedHealth Group

Cigna Humana

Ope

ratin

g M

argi

n

2009 2010 2011