Medicare Payment Policy

FIguRe
1-6
1–6
Growth rate (in percent) FIGURE
Note: Assumes the sustainable growth rate formula is replaced with a 1 percent update.
Source: 2012 annual report of the Boards of Trustees of the Medicare trust funds.
Note: Note and Source are in InDesign.
Source:
10
9
8
7
6
5
4
3
2
1
0
2007
2008
2009
the current pattern holds, the relatively older Medicare (Boards of Trustees 2012) (See online Appendix 1-A at
population may increase the number of beneficiaries http://www.medpac.gov for further detail on Medicare
needing treatment for multiple chronic conditions.
spending trends).
Medicare spending over the next 10 years
The Medicare Trustees project that Medicare spending will
grow at an average annual rate of about 6.8 percent over
the next 10 years, consisting of 3.9 percent per beneficiary
growth and 2.9 percent enrollment growth (Figure 1-6),
assuming that physician fees are updated by 1 percent per
year starting in 2013, instead of the payment reductions
mandated by the sustainable growth rate (SGR) formula.
The Trustees also project that demand for health care
(reflected by increases in both the units and intensity of
service) will increase when the economic recession abates
4
Notes about this graph:
• Data is in the datasheet. Make updates in the datasheet.
• WATCH FOR GLITCHY RESETS WHEN YOU
The
UPDATE
Trustees
DATA!!!!
predict that enrollment in Medicare
• The column totals were added manually. Advantage (MA), which is Medicare’s managed care
• I had to manually draw tick marks and axis lines
alternative
because
under
they
Part
kept
C of
resetting
Medicare
when
law, will
I changed
peak in 2012
any data.
as payment reductions prescribed in the Patient Protection
• I can’t delete the legend, so I’ll just have to crop and it Affordable out in InDesign. Care Act of 2010 begin to have an impact
• Use direct selection tool to select items for modification. on MA plans. Otherwise By 2018, once if you the use payment the black changes selection to the tool, they
default when you change the data.
MA program are fully phased in, the Trustees estimate that
about 17 percent of beneficiaries will remain on MA plans.
• Use paragraph styles (and object styles) to format.
Beneficiaries rejoining traditional fee-for-service Medicare
will likely be in low-cost areas, slightly depressing fee-forservice
costs (Boards of Trustees 2012).
12 Context for Medicare payment policy
2010
2011
2012
2013
Industry structure....
Historical and projected growth rates for Medicare
enrollment and per beneficiary spending
2014
2015
2016
2017
2018
Per beneficiary spending
Medicare enrollment
2019
2020
2021