HOUSE_OVERSIGHT_020892.jpg
2.08 MB
Extraction Summary
2
People
8
Organizations
1
Locations
5
Events
1
Relationships
3
Quotes
Document Information
Type:
Presentation slides / financial report
File Size:
2.08 MB
Summary
The document contains two slides from a 'USA Inc.' presentation produced by KPCB (Kleiner Perkins), focusing on the financial instability of the US Medicare system. It details the program's structure, funding mechanisms, and rising costs ($452 billion in 2010), noting an accumulated underfunding of $1.9 trillion over 45 years. The document bears a 'HOUSE_OVERSIGHT' Bates stamp, indicating it was part of a document production for a congressional investigation, though the text itself contains no direct mention of Jeffrey Epstein or his associates.
People (2)
| Name | Role | Context |
|---|---|---|
| Jeffrey Brown | Author/Researcher |
Cited in footnote regarding the interaction of public and private insurance.
|
| Amy Finkelstein | Author/Researcher |
Cited in footnote regarding the interaction of public and private insurance.
|
Organizations (8)
| Name | Type | Context |
|---|---|---|
| KPCB |
Kleiner Perkins Caufield & Byers, the firm that produced the presentation (logo in footer).
|
|
| USA Inc. |
Title of the report/presentation series.
|
|
| Social Security Administration |
Source of data regarding Trust Fund depletion.
|
|
| National Center for Health Statistics |
Source of data.
|
|
| Kaiser Family Foundation |
Source of data.
|
|
| World Bank |
Source of data.
|
|
| Dept. of Health & Human Services |
Source of data for the chart on page 2.
|
|
| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT_020892'.
|
Timeline (5 events)
1965
Creation of Social Insurance Program (Medicare) and introduction of Part A and Part B.
USA
Locations (1)
| Location | Context |
|---|---|
|
Subject of the financial analysis (USA Inc.).
|
Relationships (1)
Cited together in footnote 1 as authors of 'The Interaction of Public and Private Insurance'.
Key Quotes (3)
"Medicare: Complex Social Insurance Program With Insufficient Funding"Source
HOUSE_OVERSIGHT_020892.jpg
Quote #1
"Moral Hazard – As a “free good,” Medicare reduced demand for private long-term insurance while loopholes in the regulations + need-based benefit policies created incentives to abuse the system."Source
HOUSE_OVERSIGHT_020892.jpg
Quote #2
"Medicare: Underfunded by $1.9 Trillion Over 45 Years"Source
HOUSE_OVERSIGHT_020892.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,372 characters)
Medicare: Complex Social Insurance Program With Insufficient Funding
• Social Insurance Program – Created in 1965 to provide health insurance to the elderly (65+).
• Four Parts – A) Hospital Insurance (to cover inpatient expenses, introduced in 1965); B) Medical Insurance (optional outpatient expenses, 1965); C) Medicare Advantage Plans (private alternative to A&B, 1997) and D) Prescription Drug Coverage (enacted 2003).
• Funding Mechanism Varies
– Part A has dedicated funding via payroll taxes (2.9% of total payroll), though has been running at an annual deficit since 2008 as related payments exceed taxes; Trust Fund is expected to be depleted by 2017E, per Social Security Administration.
– Part B & D has no dedicated funding (75% of funding came from government allocation / 25% came from enrollees’ premium payments).
– Part C funding came Part A & Part B.
• Ever-Growing Expenses – $452 billion expenses in F2010, up 2x from 10 years ago
– Rising Healthcare Costs – Owing to aging population + unhealthy life styles + technology advances.
– Moral Hazard – As a “free good,” Medicare reduced demand for private long-term insurance¹ while loopholes in the regulations + need-based benefit policies created incentives to abuse the system.
• Four Parts – A) Hospital Insurance (to cover inpatient expenses, introduced in 1965); B) Medical Insurance (optional outpatient expenses, 1965); C) Medicare Advantage Plans (private alternative to A&B, 1997) and D) Prescription Drug Coverage (enacted 2003).
• Funding Mechanism Varies
– Part A has dedicated funding via payroll taxes (2.9% of total payroll), though has been running at an annual deficit since 2008 as related payments exceed taxes; Trust Fund is expected to be depleted by 2017E, per Social Security Administration.
– Part B & D has no dedicated funding (75% of funding came from government allocation / 25% came from enrollees’ premium payments).
– Part C funding came Part A & Part B.
• Ever-Growing Expenses – $452 billion expenses in F2010, up 2x from 10 years ago
– Rising Healthcare Costs – Owing to aging population + unhealthy life styles + technology advances.
– Moral Hazard – As a “free good,” Medicare reduced demand for private long-term insurance¹ while loopholes in the regulations + need-based benefit policies created incentives to abuse the system.
Note: 1) for more information, please see Jeffrey Brown and Amy Finkelstein, “The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market,” 2006. Source: National Center for Health Statistics, Kaiser Family Foundation, World Bank, Social Security Administration.
KP CB www.kpcb.com
USA Inc. | Income Statement Drilldown 101
KP CB www.kpcb.com
USA Inc. | Income Statement Drilldown 101
Medicare: Underfunded by $1.9 Trillion Over 45 Years
USA Inc. Real Annual Medicare Revenue & Expenses, 1966 – 2009
[Bar Chart displaying financial data]
Medicare Revenue / Expenses ($B)
[Y-axis ranges from -$500 to $300]
[Legend:]
Medicare Part B / D Expenditure
Medicare Part A Expenditure
Medicare Part A Tax Receipts
Total Medicare Net Income
[X-axis years: 1966, 1970, 1974, 1978, 1982, 1986, 1990, 1994, 1998, 2002, 2006]
[Bar Chart displaying financial data]
Medicare Revenue / Expenses ($B)
[Y-axis ranges from -$500 to $300]
[Legend:]
Medicare Part B / D Expenditure
Medicare Part A Expenditure
Medicare Part A Tax Receipts
Total Medicare Net Income
[X-axis years: 1966, 1970, 1974, 1978, 1982, 1986, 1990, 1994, 1998, 2002, 2006]
Note: Medicare Part A (hospital insurance) has dedicated trust fund while Part B (medical insurance) and Part D (prescription drug benefits) do not have dedicated funding. Data are inflation adjusted. Source: Dept. of Health & Human Services..
KP CB www.kpcb.com
USA Inc. | Income Statement Drilldown 102
KP CB www.kpcb.com
USA Inc. | Income Statement Drilldown 102
HOUSE_OVERSIGHT_020892
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