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NHE2012NATIONAL HEALTH EXPENDITURES BY TYPE
OF SERVICE AND SOURCE OF FUNDS: CALENDAR
YEARS 1960 to 2012LEVELS in
$Millions196019611962196319641965196619671968196919701
97119721973197419751976197719781979198019811982198319
84198519861987198819891990199119921993199419951996199
71998199920002001200220032004200520062007200820092010
20112012Total National Health
Expenditures273592922931907347273854441957462545178058
75566215748538324093141103365117157133585153011173979
19552822165825578429673933469936898640651244460847689
15191165816976474657242777915248579099214919726861027
43110818481142623120893412864631377167149335216379581
77801719057462035377216673123029252411693250423525990
0026927812793394Out of
pocket13051134221429915361169811826218647185872062822
65725015263802872431716344673737240767449964816952473
58396656297273978924868249597710403411016112082812731
31386431416891442151453011434581463561521941637891793
87190427201725208997221878238223251679267254277346293
647300708300669305551316128328156Health
Insurance746481878935982710900119511560021039243022749
03168836644425194791855848662137893892960106407122553
14215516753419043721250723723625915227464730006933835
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23795329848239920393101519311223181222758132236714166
851520783161178017031891798526187386619434322014409Pr
ivate Health
Insurance577964197113788789821000010223103821175413287
15424177572059322884259723046137295455385234760768690
47816089401210489311888413119013602514921017590620499
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24621870457672844393251073013428163361969422891266683
09223738744769523515955966207718297682983081889651011
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42021317322482924768626538128269731116233980140372843
2833467867499903520158546246572484Medicaid (Title
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15188174641946522332260323030732011352663823340937453
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21701608491690291835342004832242362482182691052909173
09538306865326157344916375395398116407728421199Federa
l0000006321525183522982842381045474933627774099153989
61091912705145211690217843195872109622594251872786830
99535077426075684768602769618105285945910999495498661
10720011691913228814533916089517243717764417407418575
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141390127286130662159419183345CHIP (Title XIX and Title
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State and
Local000000000000000000000000000000000000001235249151
25316531887218523132610280130843293349236133832Depart
ment of
Defense7888368609258618311078132414451499158217661997
22352475259026952922306734573949458851585393584268647
63482028778927210446115361162112025118331204511953120
52122141267913753155021902722402252132675929746321733
403336653383533982940522Department of Veterans
Affairs89793396110151058111911531268134414841719198322
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28775923696291013410939118521259413621146121484015567
15488163331750919082210832278226517279512980231861338
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Programs390643474723522756826359625260236871778990129
66610277113651302514609164401823820952242472868532958
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07223872623374241465161618986141068512696140811561318
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1982220121962333245824882591268628223175355735893813
Workers'
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17152051238226693031350640264945560661896929728576618
93710083119571381615519175301895821100226072218921914
22050221402236423931261982972433402377503898241264413
98411263891435294351563800742025General
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22354371436520540593683763883996107811211128117113031
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222062219622432095199218921785Vocational
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36036035236737838942144946346946846149849748951855855
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17016817117017217218319520020722323223824625726425327
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62636668707275798589898991929610410710811010610612112
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08669582385494811161343133411841044106511081133119712
71133115561844205022652472255228413118339538554462529
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31416155317011785189020372197233024832689288830323193
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67657408774184669053994510105109741220414674173832038
42271823389229212350425967293323223836008382284180644
70846168471924993252545579176213562080627647002675137
788978611689663101745110381100858100331108172111899T
otal CMS Programs (Medicaid, CHIP and
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40112766122212133420144045163089183842213827244183272
33830208432925535091937122637884839842942832447608951
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659621006307POPULATION1861891921951972002022042062
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24624825125425726026326626927127427728028228528829029
3295298301304307309311313Health Consumption
Expenditures247932636628414309253413637193412334651152
77159110670707436583376931211059241211601393581600091
80116204649235681273652308290339725375515413366444385
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01014108107043711295101200959128962114020791535916166
80171788341190893920355872158742225726823580072449603
25349402633359Out of
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65725015263802872431716344673737240767449964816952473
58396656297273978924868249597710403411016112082812731
31386431416891442151453011434581463561521941637891793
87190427201725208997221878238223251679267254277346293
647300708300669305551316128328156Health
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03168836644425194791855848662137893892960106407122553
14215516753419043721250723723625915227464730006933835
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23795329848239920393101519311223181222758132236714166
851520783161178017031891798526187386619434322014409Pr
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15424177572059322884259723046137295455385234760768690
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State and
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25316531887218523132610280130843293349236133832Depart
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22352475259026952922306734573949458851585393584268647
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66610277113651302514609164401823820952242472868532958
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Workers'
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17152051238226693031350640264945560661896929728576618
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22050221402236423931261982972433402377503898241264413
98411263891435294351563800742025General
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and
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87190427201725208997221878238223251679267254277346293
647300708300669305551316128328156Health
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1774818152280752Total Other Health, Residential, and
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Expenditures451518552604665725828939109312431330142317
16201924092934361745475562683185169562109181225413350
14829160471722919234218792432227830300903404337963419
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90317358406522697788895101710601069121213351300128512
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55920604563126720698171367544Health
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8Total Administration and Total Net Cost of Health Insurance
Expenditures106711601284132415091836205721322582240526
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16184932360225224224722101526748340853877939699429945
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13472157451773419522214592361325964273382861830901333
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2180612946297964147Research69488610681219136615211624
17751877192419532109235725022767337237073864443848055
42957056025654376088320900210025108361173812678138191
50911647217758186701780819640215062336925465285103201
634863385084032241481424384404445369490664966948136Pr
ivate1391471531621701761861982082132152332272322522642
67220236254292312390456507539782800839882961109112081
29814321563167618702040214924202464255027382991334735
56378240054117416643234512Federal
Gov't504680849983111212511335146615391555155616621893
20222245280931193267376040824616479049555331626968307
11479898618931499811085411902131251414914733135541503
71661618124196952243725569279053100132389331163340634
27935274388523914437143State and Local
Gov't515866748494103111130156183213237248270298321377
44246952060268075683295111071236137915421737187419812
04921772374257827332850309633503608389742214516458648
08525057605978604762026482Total Structures and
Equipment18721977242525823042324433973495410751815830
67657408774184669053994510105109741220414674173832038
42271823389229212350425967293323223836008382284180644
70846168471924993252545579176213562080627647002675137
788978611689663101745110381100858100331108172111899Pr
ivate1345147918871961235625322623254629733892446950355
63458176156646370987424804190241071913073159051754717
51616576164541813321330232992643427709309293281834465
35273372163981144268481514798448440548635889062822684
0872172821838845078034774218267385408Federal
Gov't119121126203229210237207290324352345407521496653
64355874565510231315122719262391256230333419330936293
74743954291493550375098586352435779606058525735582065
6257326389601564887758905195481153111165State and Local
Gov't408377412418457502537742844965100913851367140318
14193722042123218825252932299532523245348237834017441
54693531058276124658669556666682168537491787079248244
85899343968510343113191147613074141731377413362139681
5326Structures1480154419181923234025532558252229863945
45235193568656495977651570716867697074328585999611567
12483121991122511105125081443814978170471680218341199
29208372092221635231532374625405253742611829258309473
30633613640735465425167546880461044732550315Private106
61163150915051886203520791945230631773731424247304716
48054831512649955092538662137580914710271991488498570
96681161412138138001341714586158621705216892174711858
21954121581215602208124271260592797130465352773980244
58439014381303857341046Federal
Gov't727171859212010343586793129116971162182663343823
70439570528505595640698829799733832728743925853989115
61346101885277472387371165968174610149441763212725892
507State and Local
Gov't341310338333363397377534622701700821840836105714
66167915381496167519331845189217081690173718372011202
52107241526573013314229323041300832253187297230403314
41144177443349904712572661476103584761636762Equipment
39243350765970269183897311221236130615731722209324892
53828743238400447726089738788171023511189116961239913
45914893172601896121426234652477925331262702829729392
34171367303670636646407684419045834499804892855203587
0653978542286084761584Private2793173784564704965446006
67715738793904110213511632197224292949363845065492675
87276760177277885846597151116212634142921634416957174
13183811974521229247272657026424263593059232831348513
794336895423814386639019392914410044362Federal
Gov't475055118137901341642322572592162914243804353772
24363285584745699142117961922233525902510289629153667
35484010418441094707389747615208507850124947585150735
7085269547468147288742189428658State and Local
Gov't676774859410516020822226430956452756775747152558
56928509991150136015371792204621802404266832033412346
73573381337343780384542664683495252045275522955085910
63296764734880267671751578058564* Other Federal
Programs include OEO, Federal General and Medical, Federal
General and Medical NEC, and High Risk Pools under ACA**
Other State and Local Programs include State and Local
Subsidies and TDI
Healthcare Industry—An 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 percent—a 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.
Source: Centers for Medicare & Medicaid Services. (2014).
National Health Expenditure Data Highlights. Retrieved from
https://www.cms.gov/Research-Statistics-Data-and-
Systems/Statistics-Trends-and-
Reports/NationalHealthExpendData/Downloads/highlights.pdf
Download the National Health Expenditures [NHE] by type of
service and source of funds, NHE2012.zip file.
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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