Exhibit 1. National Health Expenditures per Capita, 1980–2007 Average spending on health per capita ($US PPP) $7,500 $7,000 United States Canada France Germany Netherlands United Kingdom $6,500 $6,000 $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 1980 1984 1988 1992 1996 2000 2004 THE COMMONWEALTH FUND Data: OECD Health Data 2009 (June 2009). Exhibit 2. National Health Expenditures as a Percentage of Gross Domestic Product, 1960–2020 Percent 25 21.3 20 18.9 17.7 15.9 15 13.7 13.8 12.3 10.4 10 7.2 5.2 8.1 9.1 5.9 5 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Projected THE COMMONWEALTH FUND Data: Centers for Medicare and Medicaid Services, The Lewin Group. Exhibit 3. Average Family Premium as a Percentage of Median Family Income, 1999–2020 Percent 25 20 16 17 22 22 21 20 21 20 19 19 19 18 18 18 18 18 23 24 14 15 11 12 13 10 5 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0 Projected Data: Commonwealth Fund calculations based on Kaiser/HRET, 1999-2008; 2008 MEPS-IC; U.S. Census Bureau, Current Population Survey; Congressional Budget Office. THE COMMONWEALTH FUND Exhibit 4. Total Number of Uninsured, 1963–2010 Millions uninsured 60 53.4 49.6 50 44.8 40.6 40 36.9 37.9 38.4 34.7 30.0 31.0 1980 1987 30 20 10 0 1963 1968 1974 1990 1995 Note: Figures for 1963-1974 are U.S. residents without hospital insurance. Data: National Health Interview Survey, Current Population Survey, The Lewin Group. 2000 2005 2010 THE COMMONWEALTH FUND Exhibit 5. National Health Expenditures (NHE) Under Alternative Scenarios, U.S. Constant 2010 Dollars, 1960–2010 NHE in billions $3,000 Current NHE (Constant 2010 $) 5.2% annual growth Clinton (1.5% slowdown) $2,500 Carter (1.5% slowdown) Nixon (1.5% slowdown) 4.8% annual growth $2,000 $2,110 $1,702 $1,583 $1,500 4.3% annual growth $1,000 $500 $2,624 4.2% annual growth $204 $0 1960 1965 1970 1975 1980 1985 1990 Data: The Centers for Medicare and Medicaid Services; Bureau of Labor Statistics, Office of Management and Budget, Congressional Budget Office. 1995 2000 2005 2010 THE COMMONWEALTH FUND Exhibit 6. National Health Expenditures (NHE) Under Alternative Scenarios, U.S. Constant 2010 Dollars, 1960–2010 NHE in billions $3,000 Current NHE (Constant 2010 $) 5.2% annual growth Clinton (1.0% slowdown) $2,500 Carter (1.0% slowdown) $2,270 4.9% annual growth Nixon (1.0% slowdown) $2,000 $2,624 $1,967 $1,875 $1,500 4.6% annual growth $1,000 4.5% annual growth $500 $204 $0 1960 1965 1970 1975 1980 1985 1990 Data: The Centers for Medicare and Medicaid Services; Bureau of Labor Statistics, Office of Management and Budget, Congressional Budget Office. 1995 2000 2005 2010 THE COMMONWEALTH FUND Exhibit 7. National Health Expenditures (NHE) Under Alternative Scenarios, Percentage of Gross Domestic Product, 1960–2010 NHE (% GDP) 20% NHE (% GDP) Clinton (1.5% slowdown) Carter (1.5% slowdown) Nixon (1.5% slowdown) OECD Median 18% 16% 14% 17.7% 14.2% 12% 11.5% 10.7% 9.0% 10% 8% 6% 5.2% 4% 3.8% 2% 0% 1960 1965 1970 1975 1980 1985 1990 Data: The Centers for Medicare and Medicaid Services; Bureau of Labor Statistics, Office of Management and Budget, Congressional Budget Office. 1995 2000 2005 2010 THE COMMONWEALTH FUND Exhibit 8. National Health Expenditures (NHE) Under Alternative Scenarios, Percentage of Gross Domestic Product, 1960–2010 NHE (% GDP) 20% NHE (% GDP) Clinton (1.0% slowdown) Carter (1.0% slowdown) Nixon (1.0% slowdown) OECD Median 18% 16% 14% 17.7% 15.3% 13.3% 12.7% 12% 10% 9.0% 8% 6% 5.2% 4% 3.8% 2% 0% 1960 1965 1970 1975 1980 1985 1990 Data: The Centers for Medicare and Medicaid Services; Bureau of Labor Statistics, Office of Management and Budget, Congressional Budget Office. 1995 2000 2005 2010 THE COMMONWEALTH FUND Exhibit 9. Federal Health Expenditures (FHE) Under Alternative Scenarios, Percentage of Gross Domestic Product, 1960–2010 FHE (% GDP) 7% Current FHE/GDP 6% Clinton (1.5% slowdown) 6.2% 5% Carter (1.5% slowdown) Nixon (1.5% slowdown) 5.0% 4.0% 3.7% 4% 3% 2% 1% 0.6% 0% 1960 1965 1970 1975 1980 1985 1990 Data: The Centers for Medicare and Medicaid Services; Bureau of Labor Statistics, Office of Management and Budget, Congressional Budget Office. 1995 2000 2005 2010 THE COMMONWEALTH FUND Exhibit 10. Federal Health Expenditures (FHE) Under Alternative Scenarios, Percentage of Gross Domestic Product, 1960–2010 FHE (%GDP) 7% Current FHE/GDP 6% Clinton (1.0% slowdown) 6.2% 5% Carter (1.0% slowdown) Nixon (1.0% slowdown) 5.3% 4.6% 4.4% 4% 3% 2% 1% 0.6% 0% 1960 1965 1970 1975 1980 1985 1990 Data: The Centers for Medicare and Medicaid Services; Bureau of Labor Statistics, Office of Management and Budget, Congressional Budget Office. 1995 2000 2005 2010 THE COMMONWEALTH FUND Exhibit 11. System Improvement Provisions of National Health Reform Proposals, 2009 Exchange Standards and Plans Innovative Payment Pilots: Medical Homes, Accountable Care Organizations, Bundled Hospital and Post-Acute Care Productivity Improvements Primary Care Prevention and Wellness Comparative Effectiveness Quality Improvement House of Representatives 11/05/09 Senate 11/18/09 National or state exchanges; private, public, or co-op plans offered; essential health benefits 70%–95% actuarial value, four tiers; insurers must meet specified medical loss ratio of 85 percent State or regional exchanges; private and co-op plans offered; public plan with state opt-out; essential health benefits 60%–90% actuarial value, four tiers plus young adults policy; insurers must report medical loss ratio Adopt medical homes, ACOs, and bundled payments on large scale if pilot programs prove successful; Center for Payment Innovation Allow Medicaid beneficiaries to designate medical home; ACOs to share savings in Medicare; CMS Innovations Center Modify market-basket updates to account for productivity improvements Modify market-basket updates to account for productivity improvements Increase Medicare payments for PCPs by 5%; bring Medicaid PCPs up to Medicare level 10% bonus payments for 5 years; half of the costs offset by across-the-board reduction in all other services Develop a national prevention and wellness Provide annual wellness visit and/or strategy; establish a Prevention and Wellness health risk assessment for Medicare Trust Fund; remove cost-sharing for beneficiaries; strengthen state and employer proven preventive services; grants to wellness programs; remove support employer wellness programs cost-sharing for proven preventive services Establish Center for Comparative Effectiveness Research within AHRQ Create Patient-Centered Outcomes Research Institute Establish the Center for Quality Improvement to identify, develop, evaluate, disseminate, and implement best practices; develop national priorities for performance improvement and quality measures Direct HHS to develop national quality strategy, public reporting Source: K. Davis, S. Guterman, S. R. Collins et al., Starting on the Path to a High Performance Health System: Analysis of Health System Reform Provisions of Reform Bills in the House of Representatives and Senate (New York: The Commonwealth Fund, Dec. 2009). THE COMMONWEALTH FUND Exhibit 12. Total National Health Expenditures (NHE), 2009–2019, Current Projection and Alternative Scenarios NHE in trillions $5 6.6% annual growth Modified current projection* $5 $4.8 $4.7 $4.5 Current projection $4 Senate 6.4% annual growth $4 6.0% annual growth $3 $3 $2.5 Total 10-Year NHE Savings Compared with Modified Current Projection $2 $2 $1 $1.090 Trillion $1 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 * Modified current projection estimates national health spending when corrected to reflect underutilization of services by previously uninsured. Source: D. M. Cutler, K. Davis, and K. Stremikis, Why Health Reform Will Bend the Cost Curve (Washington and New York: Center for American Progress and The Commonwealth Fund, Dec. 2009). 2018 2019 THE COMMONWEALTH FUND