Examine the trends in expenditures for the service categories presented in the table. What is the magnitude and direction of spending changes within and across each of these categories: the percentage of GDP spent on NHE and the NHE per capita

National Health Expenditure Analysis
Click here http://vizedhtmlcontent.next.ecollege.com/pub/content/3c1908050bf6-4c9c-a78d-41791cca30a3/SU_HCM3002_W1_A3.pdf
to view and study the NHE data for selected calendar years between 1970 and 2003
and for selected service categories (with the exception of the catch-all category of
other) (Centers for Medicare & Medicaid Services [CMS], n.d.).
Answer the following questions in a 2- to 3-page Microsoft Word document: SUPPLY
1. Examine the trends in expenditures for the service categories presented in the
table. What is the magnitude and direction of spending changes within and across
each of these categories: the percentage of GDP spent on NHE and the NHE per
2. What can you say about how the price of medical care services changes? As you
think about what you might say, realize that the figures have been adjusted for
inflation. Also, assume that not all increases in healthcare costs are caused by
increases in utilization.
3.Examine the rates of growth in the service categories (except the category
other). What trends do you see in the mix of healthcare services used by the US
public? What factors might contribute to these trends?

Trends in Healthcare Services
Part 1
You are a member of a presidential commission appointed to consider a mandatory
national health insurance plan and the question of how to fund the plan is being
Specifically, three separate options are being considered to generate an average of $4,000
per workera flat mandatory premium, a doubling of the current 7.65% payroll tax that
comes out of people’s pay to cover social security and Medicare, and a 7% increase in
income tax.
Think about funding plans from the perspective of three workers:

One who makes $25,000 per year

One who makes the same in salary but also has $1,000 in investment income

One who makes $85,000 per year, including $10,000 in investment income

Based on the above scenario, answer the following questions: ANSWER THE
1. Which of the three funding measures, considering the relative financial
it imposes on individuals such as these, would you support and why?
2. How has the emergence of different types of health insurance plansFFS, health
maintenance organizations (HMOs), preferred provider organizations (PPOs), and
capitationaffected the trends in healthcare services today?
3. What economic and societal factors affect the demand and pricing of healthcare
services in today’s health insurance market?
Healthcare IndustryAn Economic System
The National Health Expenditure Accounts (NHEA) estimates health care spending
over time, including everything from health care goods and services to public health
activities, government administration to health care investment. For this
assignment, we will focus on health spending by major sources of funds. Please see
below for a summary:
Medicare: Medicare spending, which represented 20 percent of national health
spending in 2012, grew 4.8 percent to $572.5 billion, a slight slowdown from growth
of 5.0 percent in 2011. A one-time payment reduction to skilled nursing facilities in

2012, after a large increase in payments in 2011 due to implementation of a new
payment system contributed to the slower growth.
Medicaid: Total Medicaid spending grew 3.3 percent in 2012 to $421.2 billion, an
acceleration from 2.4-percent growth in 2011. The relatively low annual rates of
growth in Medicaid spending in 2011 and 2012 can be explained in part by slower
enrollment growth tied to improved economic conditions and efforts by states to
control health care costs. Federal Medicaid expenditures decreased 4.2 percent in
2012, while state and local Medicaid expenditures grew 15.0 percenta result of
the expiration of enhanced federal aid to states in the middle of 2011.
Private Health Insurance: Overall, premiums reached $917.0 billion in 2012, and
increased 3.2 percent, near the 3.4 percent growth in 2011. The net cost ratio for
private health insurance the difference between premiums and benefits as a share
of premiums was 12.0 percent in 2012 compared with 12.4 percent in 2011.
Private health insurance enrollment increased 0.4 percent to 188.0 million in 2012,
but still 9.4 million lower than in 2007.
Out-of-Pocket: Out-of-pocket spending grew 3.8 percent in 2012 to $328.2 billion, an
acceleration from growth of 3.5 percent in 2011, reflecting higher cost-sharing and
increased enrollment in consumer-directed health plans.
Download the National Health Expenditures [NHE] by type of service and source of
funds, NHE2012.zip file. (FILE WILL BE SENT TO YOU ) Summarize in a table the
total NHE (in millions) for the following years: 1960, 1970, 1980, 1990, 2000, 2010.
Present the data visually by creating a line graph or a bar diagram depicting changes
in values.
Comment on the changes in the categories of expenditure sources, i.e., out-of-pocket,
health insurance, third party payers, etc. with respect to both year-to-year changes
and across the entire period.
Include specific interpretations of why such changes are apparent [social, political,
economic, etc. factors] and what strategies may be necessary to curb healthcare
expenditure in the coming years.;
Support your responses with examples.
Cite any sources in APA format.

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