HOUSE_OVERSIGHT_020901.jpg
1.78 MB
Extraction Summary
0
People
7
Organizations
1
Locations
2
Events
0
Relationships
4
Quotes
Document Information
Type:
Presentation slides / financial analysis report
File Size:
1.78 MB
Summary
This document consists of two presentation slides (pages 119 and 120) from a KPCB 'USA Inc.' report. The first slide analyzes historical Medicare spending, noting that actual 1990 costs ($110B) were significantly higher than the 1967 estimates ($12B). The second slide contrasts this with Medicare Part D (2006-2009), which cost 45% less than projected ($61B vs $111B) due to lower participation and private sector management. The document bears a 'HOUSE_OVERSIGHT_020901' Bates stamp, indicating it was part of a document production for a congressional investigation.
Organizations (7)
| Name | Type | Context |
|---|---|---|
| KPCB |
Logo and URL present on slides
|
|
| House Ways & Means Committee |
Cited as making spending estimates in 1967
|
|
| Senate Joint Economic Committee |
Source for data on slide 119
|
|
| The Washington Times |
Quoted regarding Medicare Part D costs
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|
| Morgan Stanley Healthcare Research |
Source for data on slide 120
|
|
| USA Inc. |
Name of the presentation/report series
|
|
| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT'
|
Timeline (2 events)
1967
2010-08-16
Locations (1)
| Location | Context |
|---|---|
|
Subject of the report 'USA Inc.'
|
Key Quotes (4)
"If History is a Guide, There is Potential for Estimates to Understate Eventual Costs – Medicare Is 10x Higher Than Spending Forecast"Source
HOUSE_OVERSIGHT_020901.jpg
Quote #1
"In reality, total spending increased 61.1x"Source
HOUSE_OVERSIGHT_020901.jpg
Quote #2
"However, More Recent Healthcare Entitlement Such as Medicare part D Has Cost Less Than Expected"Source
HOUSE_OVERSIGHT_020901.jpg
Quote #3
"The Washington Times stated on August 16th 2010 – "The lower cost - a result of slowing demand for prescription drugs, higher use of generic drugs and fewer people signing up - has surprised even some of the law's most pessimistic critics.""Source
HOUSE_OVERSIGHT_020901.jpg
Quote #4
Full Extracted Text
Complete text extracted from the document (1,750 characters)
If History is a Guide, There is Potential for Estimates to Understate Eventual Costs – Medicare Is 10x Higher Than Spending Forecast
Actual vs. Estimated Spending on Medicare
In reality, total spending increased 61.1x
In reality, total spending increased 61.1x
120
100
Annual Medicare Spending ($MM adjusted for inflation)
80
In the first year of Medicare, total spending was $1.8bn
60
In 1967, the House Ways & Means Committee estimated spending would increase 6.7x by 1990
$110B
40
20
$12B
$2B
0
1966A
1990E (in 1967)
1990A
100
Annual Medicare Spending ($MM adjusted for inflation)
80
In the first year of Medicare, total spending was $1.8bn
60
In 1967, the House Ways & Means Committee estimated spending would increase 6.7x by 1990
$110B
40
20
$12B
$2B
0
1966A
1990E (in 1967)
1990A
KP
CB www.kpcb.com
Source: Senate Joint Economic Committee Report, 7/31/09
USA Inc. | Income Statement Drilldown 119
CB www.kpcb.com
Source: Senate Joint Economic Committee Report, 7/31/09
USA Inc. | Income Statement Drilldown 119
However, More Recent Healthcare Entitlement Such as Medicare part D Has Cost Less Than Expected
• Medicare Part D (the 2006 outpatient drug benefit for seniors) was projected to cost $111 billion annually.
• In 2009, Medicare Part D’s actual cost = $61 billion, 45% below projection.
• The government originally projected 43 million beneficiaries in 2009, but only 33 million seniors (23% below projection) elected to participate in 2009.
• Medicare Part D was outsourced to the private sector, and seniors elected to enroll in plans operated primarily by managed care organizations, which utilize a variety of techniques to reduce costs and improve the quality of care.
• The Washington Times stated on August 16th 2010 – "The lower cost - a result of slowing demand for prescription drugs, higher use of generic drugs and fewer people signing up - has surprised even some of the law's most pessimistic critics."
• The Part D experience has given some observers hope that PPACA will not cost more than anticipated.
• In 2009, Medicare Part D’s actual cost = $61 billion, 45% below projection.
• The government originally projected 43 million beneficiaries in 2009, but only 33 million seniors (23% below projection) elected to participate in 2009.
• Medicare Part D was outsourced to the private sector, and seniors elected to enroll in plans operated primarily by managed care organizations, which utilize a variety of techniques to reduce costs and improve the quality of care.
• The Washington Times stated on August 16th 2010 – "The lower cost - a result of slowing demand for prescription drugs, higher use of generic drugs and fewer people signing up - has surprised even some of the law's most pessimistic critics."
• The Part D experience has given some observers hope that PPACA will not cost more than anticipated.
KP
CB www.kpcb.com
Source: Morgan Stanley Healthcare Research.
USA Inc. | Income Statement Drilldown 120
CB www.kpcb.com
Source: Morgan Stanley Healthcare Research.
USA Inc. | Income Statement Drilldown 120
HOUSE_OVERSIGHT_020901
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