Chapter 14 Financing Copyright 2005 by Thomson Delmar

Personal Health Care Expenditures, 1965 (total = $35. 2 billion) Nursing Homes 4% Home Health 0. 2% Physicians 20% Other 42% Hospitals 34% Copyright © 2005 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 2

Personal Health Care Expenditures, 2001 (total = $1. 424 trillion) Home Health 3% Nursing Homes 8% Other 26% Physicians 22% Rx Drugs 11% Hospitals 37% Copyright © 2005 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 3

Nursing Home Sources of Payment by Selected Years Copyright © 2005 by Thomson Delmar

Medicare and Medicaid Spending for Nursing Home Care, 1985 -2000 in Millions $30 $20 $10 $0 1985 1987 1989 Medicare 1991 1993 1995 1997 1999 Medicaid Copyright © 2005 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 5

Home Health Sources of Payment by Selected Years Copyright © 2005 by Thomson Delmar

Medicare and Medicaid Spending for Home Health Care, 1985 -2000 $14, 000 in Millions $12, 000 $10, 000 $8, 000 $6, 000 $4, 000 $2, 000 $0 1985 1988 Medicare 1991 1994 1997 2000 Medicaid Copyright © 2005 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 7

Growth in Medicare Enrollment in Millions 40 35 30 25 1984 1987 1990 1993

Medicare HMO Enrollment 6. 5 7 5. 7 in Millions 6 5. 8 5. 2 4. 8 5 3. 7 4 3 2 6. 2 1. 8 2. 2 2. 5 2. 9 1. 3 1. 5 1 0 1992 1994 1996 1998 2000 Copyright © 2005 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 2002 9

Medicare Provider Payment Distribution for Selected Years Copyright © 2005 by Thomson Delmar Learning.

Medicaid Provider Payment Distribution for Selected Years Copyright © 2005 by Thomson Delmar Learning.

Long-Term Care Insurance Policies Sold 9, 000 8, 300 8, 000 in Thousands 7, 000 5, 542 6, 000 4, 960 5, 000 4, 000 2, 930 3, 000 2, 000 1, 000 0 5, 842 815 1, 130 1987 1, 550 1989 1, 930 3, 417 3, 837 4, 350 2, 430 1991 1993 1995 Copyright © 2005 by Thomson Delmar Learning. ALL RIGHTS RESERVED. 1997 2001 12