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2007 Payment Services Review

Staff Reporters

In 2007, benefit payments for the four parts of Medicare totaled $426 billion and allocated as follows:

Part A: Hospital Insurance = 41% (includes home health which is partially funded under Part B)

• Hospital Inpatient = 30%
• Skilled Nursing Facilities = 5%
• Home Health = 4%
• Hospice = 2%

Part B: Supplemental Medicare Insurance = 28%

• Physicians and other suppliers = 20%
• Hospital Outpatient = 4%
• Other Part B benefits = 4%

Part C: Medicare Advantage (private health plans) = 18%

Part D: Prescription Drug Benefit = 12%

• Payments to Drug Plans = 7%
• Low-Income Subsidy Payments = 4%
• Payments to Union/Employer-Sponsored Plans = 1%

Note: Does not include administrative expenses such as spending for implementation of the Medicare drug benefit and the Medicare Advantage program. Total is net of $8.1 billion in recoveries for 2007.

Data Source: Congressional Budget Office, Medicare Baseline, March 2008.

Publication: Medicare Spending and Financing Fact Sheet; September 2008. The Kaiser Family Foundation.

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Filed under: Drugs and Pharma, Health Insurance, Healthcare Finance, Monthly Reports, Research & Development | Tagged: medicare |