Federal Government’s Health Care Spending Continues Rapid Increase, Shifting Costs to Taxpayers

The Centers for Medicare and Medicaid Services today released an annual report on national health expenditures that revealed health care spending increased by 3.9 percent in 2010, continuing the upward trend in health care costs. But the news that shouldn’t be overlooked in the report is the federal government’s share of total national health expenditures.

In 2010, the federal government’s share increased to 29 percent. This means the American taxpayer will bear the brunt of this rapidly rising health care spending. And there's no relief in sight. In fact, in 2014 as the health care law’s Medicaid expansion and cost sharing subsidies take effect, taxpayer funding of health care is expected to rise even further.

Proponents of the health care law promised the reforms would decrease costs, but the law fails to actually address the rising cost of health care.  The law ignores the problem, and instead places additional expensive mandates on states, individuals, and businesses. Health care costs are going nowhere but up, and it's taxpayers who are footing more and more of the bill. 

The National Health Expenditure Accounts (NHEA) are the official estimates of total health care spending in the United States. Dating back to 1960, the NHEA measures annual U.S. expenditures for health care goods and services, public health activities, government administration, the net cost of health insurance, and investment related to health care. The data are presented by type of service, sources of funding, and by type of sponsor.

U.S. health care spending accelerated slightly in 2010, increasing 3.9 percent compared to growth of 3.8 percent in 2009. Total health expenditures reached $2.6 trillion, which translates to $8,402 per person or 17.9 percent of the nation's Gross Domestic Product, the same share as in 2009.

Downloads

Highlights [PDF, 50 KB]  NHE Web tables [PDF, 566 KB]  National Health Expenditures by type of service and source of funds, CY 1960-2010 [ZIP, 43 KB]  NHE summary including share of GDP, CY 1960-2010 [ZIP, 3 KB]  Sponsor Highlights [PDF, 376 KB]  Definitions, Sources, Methods [PDF, 420 KB]  Summary of benchmark changes (2009) [PDF, 167 KB])  Summary of benchmark changes (2004) [PDF, 35 KB]  Quick Reference: National Health Expenditure category definitions [PDF, 94 KB]  Nation's health dollar - where it came from, where it went [PDF, 352 KB]

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Over 100,000 primary care providers sign up to adopt electronic health records through their Regional Extension Centers

November 17, 2011 WASHINGTON, DC – The HHS Office for the National Coordinator for Health Information Technology announced today that more than 100,000 primary care providers are adopting certified Electronic Health Records (EHRs) to help improve their quality of care and ultimately lower health care costs. This commitment by more than one-third of all primary care providers nationwide to work with their Regional Extension Center (REC) to participate in the Medicare and Medicaid Electronic Health Record (EHR) Incentive Programs as a way to transition from paper records to certified EHRs, representing a major step toward broader and more meaningful use of health IT.

Designed to jump start EHR adoption, the Health Information Technology Economic and Clinical Health (HITECH) Act of 2009, part of the Recovery Act, created a nationwide network of RECs comprised of local nonprofits, to provide guidance and resources to help eligible professionals make the transition from paper records to certified EHRs. Eligible providers that meet meaningful use of certified EHRs criteria may be eligible for incentive payments under the Recovery Act.

The 62 RECs focus on assisting primary care providers and those providers serving traditionally medically underserved populations as they take part in the Medicare and Medicaid EHR Incentive Programs and meaningfully use EHRs in ways that can reduce health care costs, increase patient safety, and improve the overall quality of patient care. These providers face challenges in EHR adoption including tight budgets, over-stretched health information technology staff, and limited broadband access.

“The RECs are playing an integral role in helping providers on the path to EHR adoption,” said Farzad Mostashari, MD, ScM, the Office of National Coordinator for Health Information Technology. “This compelling milestone demonstrates strong interest in adoption and meaningful use among community health centers, small practices, and rural providers that can lead to improvements in health and healthcare.”

One-half of the providers committed to making the transition to certified EHRs are in small group practices or consortia of small group practices. The remaining providers focus on the underserved with 18 percent in community health centers, 11 percent in public hospitals, and 21 percent in other underserved settings, such as critical access hospitals, rural health clinics, and practices in medically underserved areas.

RECs serve the majority of primary care providers in small practices in rural areas. Today’s figures include over half of the targeted 1,776 critical access and rural hospitals in 41 states and throughout Indian Country.

A complete listing of REC grant recipients and additional information about Regional Extension Centers may be found at http://www.HealthIT.hhs.gov/REC/.

For more information about how health IT can lead to safer, better, and more efficient health care, visit http://www.healthit.gov/.

For information about the Medicare and Medicaid EHR Incentive Programs, see http://www.cms.gov/EHRIncentivePrograms.

For information about HHS Recovery Act health IT programs, see http://www.hhs.gov/recovery/announcements/by_topic.html#hit.

Readying the Centers for Medicare and Medicaid Services' Information Technology Systems to Meet Emerging Needs

The mission of the Centers for Medicare and Medicaid Services (CMS) is shifting from one primarily concerned with claims payment to one centered on improving the efficiency, quality, safety, and equity of U.S. health care services.

CMS is also responsible for testing innovative care and payment models and overseeing and supporting the state-based insurance exchanges called for in the 2010 Patient Protection and Affordable Care Act. In light of these challenges, CMS asked the National Research Council to review the centers’ plans for modernizing and developing its information systems.

Committee on Future Information Architectures, Processes, and Strategies for the Centers for Medicare and Medicaid Services; National Research Council

Readying the Centers for Medicare and Medicaid Services' Information Technology Systems to Meet Emerging Needs

http://books.nap.edu/catalog.php?record_id=13281#toc