class 2: estimating the size and structure of the us health industry -1980 to 2000

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Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000 Two emphases: 1. The tools CMS uses to estimate size and structure of the US Health Industry 2. Interpreting the estimates published by CMS

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Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000. Two emphases: 1. The tools CMS uses to estimate size and structure of the US Health Industry 2. Interpreting the estimates published by CMS. - PowerPoint PPT Presentation

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Page 1: Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000

Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000

Two emphases:

1. The tools CMS uses to estimate size and structure of the US Health Industry

2. Interpreting the estimates published by CMS

Page 2: Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000

U.S. National Health Accounts (NHA)(http://www.cms.gov/statistics/nhe)

• Starting in 1964, HHS has published annual statistics on national health expenditures.

• The NHA define sources of health expenditures and medical services exchanged for these expenditures.

• By maintaining a consistent set of these definitions, the NHA can compare NHE over time.

• Each health transaction is entered twice into the NHA - as an expenditure and a payment. This double-entry set-up enables NHA statisticians to compare expenditures against payments to check NHE estimates for accuracy.

Page 3: Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000

The NHA Are Grouped Into Various Configurations That Measure Key Trends in

Health Policy Debates (http://www.cms.gov/statistics/nhe/historical/t3.asp)

• PHE as a portion of GDP• PHE by various sources of funds• Over time, changes in the sources-of-funds

structure• Payments for various types of services• Over time, changes in the types-of-services

structure• Projections

Page 4: Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000

National Health Expenditures(NHE) by objects:

• Health services and supplies– Personal Health Care (PHC)

– Program administration and net cost of private health insurance

– Government public health activities

• Research and construction– Research

– Construction

Page 5: Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000

NHE by Sources of Funds

• Out-of-pocket expenditure• Private health insurance• Non-patient revenue and philanthropy• Medicare • Medicaid• State and local government hospital subsidy• Other government programs (SCHIP)

Page 6: Class 2: Estimating the size and structure of the US Health Industry -1980 to 2000

Deflating PHC Expenditures

• Deflating health care spending separates the effects of price growth from growth attributable to all other factors.

• PHC expenditure fixed weight price index (M-CPI). Based on surveys taken by the Department of Labor.

• M-CPI is used to deflate current annual estimates of personal health care expenditures. This technique is used to eliminate the impact of market changes on PHC expenditures.

• Comments on current concerns about M-CPI