Exhibit 2. Medicare Enrollment,

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1 Exhibit 2. Medicare Enrollment, Enrollment in millions Source: Centers for Medicare and Medicaid Services, 13 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds (Washington, D.C.: CMS, 13).

2 Exhibit 4. Percent of Medicare Beneficiaries Enrolled in Medicare Advantage Plans, Percent Source: Analysis of Medicare Advantage enrollment files by the Henry J. Kaiser Family Foundation.

3 Exhibit 5. Medicare Spending as Percentage of U.S. Gross Domestic Product, Percent of GDP Source: Medicare Payment Advisory Commission, Health Care Spending and the Medicare Program, Data Book (Washington, D.C.: MedPAC, 14).

4 Exhibit 6. Medicare s Share of Spending by Type of Service, 12 Percent Hospital Physician and clinical Home health Nursing home Durable medical equipment Prescription drugs Source: Medicare Payment Advisory Commission, Health Care Spending and the Medicare Program, Data Book (Washington, D.C.: MedPAC, 14).

5 Exhibit 7. Spending in Traditional Medicare Is Highly Concentrated in Small Group of Beneficiaries, 1 1% 9% 8% 7% 6% Most costly 1% Next 4% Next 5% Next 15% Next 25% % 18 4% 3% % Least costly 25 1% 13 % Percent of beneficiaries 4 Percent of program spending Note: All data are fee-for-service and for calendar year 1. Analysis excludes beneficiaries with any group health enrollment during the year. Percent of program spending total may not sum to 1 percent because of rounding. Source: Medicare Payment Advisory Commission, analysis of 1 Medicare Current Beneficiary Survey Cost and Use files (Washington, D.C.: MedPAC).

6 Exhibit 8. Many Medicare Beneficiaries Do Not Have Sufficient Savings to Cover Health and Long-Term Care Expenditures as They Age, 9 Medicare household spending Non-Medicare household spending Housing $1, % Other $6,375.6% Transportation $4, % Health care $4,6 14.9% Food $4, % Housing $17,39 34.% Other $15, % Health Transportation care $8, % $2,44 4.8% Food $7, % Average household spending = $3,966 Average household spending = $5,143 Source: J. Cubanski, C. Swoope, A. Damico et al., Health Care on a Budget: The Financial Burden of Health Spending by Medicare Households, analysis of the Bureau of Labor Statistics Consumer Expenditure Survey Interview and Expense Files, 9 (Menlo Park, Calif.: Henry J. Kaiser Family Foundation, June 11).

7 Exhibit 9. Sources of Supplemental Coverage Among Noninstitutionalized Medicare Beneficiaries 1% 1% Employer-sponsored insurance 29% Medigap 24% Medicaid Medicare Advantage Other/Public sector 14% 22% No supplemental coverage Source: Medicare Payment Advisory Commission, analysis of 1 Medicare Current Beneficiary Survey Cost and Use files (Washington, D.C.: MedPAC).

8 Exhibit 1. Out-of-Pocket Spending for Premiums and Health Services per Medicare Beneficiary, by Insurance and Health Status, 1 Dollars 7, 6, Premiums paid by beneficiaries Out-of-pocket spending by beneficiaries 5, 4, 3, 2, 1, 2,768 1,435 1,217 1,273 3,77 1,691 2,2 2,438 2,971 2,39 2,651 1,998 3,18 3,415 3,88 4,134 1,99 1, ,896 1,355 1,73 1, Medicare only ESI Medigap Medigap & Medicaid Other employer Beneficiaries who report they are in fair or poor health + Beneficiaries who report they are in good, very good, or excellent health Note: ESI = employer-sponsored supplemental insurance. Source: Medicare Payment Advisory Commission, analysis of 1 Medicare Current Beneficiary Survey Cost and Use files (Washington, D.C.: MedPAC).

9 Exhibit 11. Total Out-of-Pocket Costs of $1, or More, 12 Percent All Medicare elderly (age 65+) Medicaid (all adults) Employer insurance (ages 19 64) Individual insurance (ages 19 64) Uninsured (all adults) Source: The Commonwealth Fund Biennial Health Insurance Survey (12).

10 Exhibit 12. Any Access Problem Because of Cost, 12 Percent All Medicare elderly (age 65+) Medicaid (all adults) Employer insurance (ages 19 64) Individual insurance (ages 19 64) Uninsured (all adults) Source: The Commonwealth Fund Biennial Health Insurance Survey (12).

11 Exhibit 13. U.S. Adults Who Have a Medical Home, 12 Percent All Medicare elderly (age 65+) Medicaid (all adults) Employer insurance (ages 19 64) Individual insurance (ages 19 64) Uninsured (all adults) Source: The Commonwealth Fund Biennial Health Insurance Survey (12).

12 Percent 3 Exhibit 14. Administrative Costs of Private Coverage Are High Total private Medicare Traditional Medicare Private Medicare Advantage Medigap Sources: Commonwealth Fund Commission on a High Performance Health System, The Path to a High Performance U.S. Health System: A Vision and the Policies to Pave the Way (New York: The Commonwealth Fund, Feb. 9); Congressional Budget Office, Designing a Premium Support System for Medicare (Washington, D.C.: CBO, 6); and S. Sheingold, A. Shartzer, and D. Ly, Variation and Trends in Medigap Premiums (Washington, D.C.: U.S. Department of Health and Human Services, Assistant Secretary for Planning and Evaluation, Dec. 11).

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