Congressional Budget Office The Medicare Advantage Program July

Congressional Budget Office The Medicare Advantage Program July 16, 2007

Total Federal Spending for Medicare and Medicaid Under Assumptions About the Health Cost Growth Differential Percent of Gross Domestic Product

Recent Enrollment in Medicare Advantage and Other Group Health Plans Additions Total, Dec. 2005 During 2006 During Total, June 2007 5, 160 840 190 6, 190 210 660 720 1, 590 0 100 60 160 6, 120 1, 470 960 8, 560 Medicare Advantage Local HMOs and PPOs Private fee for service Regional PPOs Total for All Group Health Plans

Enrollment in Medicare Advantage as a Percentage of Enrollment in Medicare Percentage of Part A Enrollment

Estimated Budgetary Effects of Policies Capping the Benchmarks under the Medicare Advantage Program Limit on MA Benchmarks as a Percentage of FFS Costs Change in Direct Spending (Billions of dollars) 2008– 2012 2008– 2017 100 -54 -149 110 -32 -90 120 -15 -42 130 -6 -18 140 -2 -7 150 -2 -4 Source: Dartmouth Atlas of Health Care.

Medicare Spending per Capita in the United States, by Hospital Referral Region, 2003 $7, 000 to 11, 352 (63) 6, 500 to < 7, 000 (53) 6, 000 to < 6, 500 (56) 5, 500 to < 6, 000 (64) 4, 272 to < 5, 500 (70) Not Populated www. dartmouthatlas. org Source: Dartmouth Atlas of Health Care.