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CMS releases health spending estimates
Health care spending growth in the United States slowed for the third consecutive year in 2005, increasing 6.9% compared to 7.2% growth in 2004 and 8.1% in 2003, according to a report recently issued by the Centers for Medicare & Medicaid Services (CMS).
The 6.9% growth in 2005 marks the slowest rate of growth in health care spending since 1999, when growth was 6.2%. Health care spending reached almost $2.0 trillion in 2005, or $6,697 per person, up from $6,322 per person in 2004.
Expenditures for home health care agencies, although a small share of total health spending (only 2.4%), grew the fastest among all services in 2005, increasing 11.1% to $47.5 billion. This is the third straight year of double-digit growth, driven by strong growth in public payments, which accounted for 75% of total home health spending in 2005.
Growth in overall public spending, 7.7% in 2005, outpaced overall private spending growth of 6.3%. Public spending growth has exceeded growth in private spending in each of the last two years, primarily due to strong growth in Medicare spending, and now accounts for 45% of total health spending.
Medicare spending rose 9.3% to $342 billion in 2005, following growth of 10.3% in 2004. Although growth remained strong, the deceleration was driven by slower growth in spending for hospital care, physician and clinical services, and nursing home and home health care, according to report authors.
CMS: No late fees for low-income enrollees
The Centers for Medicare and Medicaid Services has announced the elimination of the 2007 late enrollment penalty for any beneficiary eligible for the low-income subsidy for a Part D plan even if they failed to sign up by the program's initial deadline.
Generally, Medicare beneficiaries who are qualified to join a prescription drug plan, or Part D, but choose not to enroll during their initial enrollment period, may be subject to a late enrollment penalty (LEP). These fees were intended to encourage Medicare beneficiaries to sign up for the drug coverage plan when they first become eligible, but may cause some low-income beneficiaries to avoid seeking coverage.
"It is very important that we remove whatever barriers may be preventing low-income beneficiaries from taking advantage of this great, cost-saving program," said CMS acting Administrator Leslie V. Norwalk. "This is our most difficult population to reach and the one for which we continue to focus our efforts. By continuing to remove the fear of a late fee for those who may not be able to pay, we are taking a positive step aimed at broader coverage for everyone."
Health care spending growth in the United States slowed for the third consecutive year in 2005; and The Centers for Medicare and Medicaid Services has announced the elimination of the 2007 late enrollment penalty for any beneficiary eligible for the low-income subsidy for a Part D plan.You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
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