10 Essential Facts About Medicaer and Prescription Drug Spending
1. 50% 46% 45% 45% 46% 46% 45% 44% 43% 43% 44% 43% 43% 43% 42% 42% 42% 42% 41% 41%5% 5% 5% 5% 5% 5% 5% 5% 4%
4%
4% 4%
4% 4%
4%
4%
4%
4%
4%
4%
25% 23% 22% 21% 19% 18% 18% 17% 16%
15%
15% 14%
14%
13%
13%
13%
13%
13%
12%
12%
18% 9% 8% 8% 8% 8% 8% 8% 8%
9%
9% 9%
9%
9%
9%
9%
9%
9%
9%
9%
2% 18% 20% 21%
22% 23% 24% 26% 28%
29%
29%
30%
31%
31%
32%
33%
33%
33%
34%
34%
$205
$224
$236 $241
$253 $253 $259 $259 $265
$298
$328
$343
$364
$385
$409
$435
$464
$495
$528
$564
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Medicare
Medicaid
Out of pocket
Other payers
Private health insurance
NOTE: Medicaid prescription drug spending accounts for rebates.
SOURCE: Kaiser Family Foundation analysis of CMS National Health Expenditure Data for Historical (CY2005-2014) and Projected
(CY2015-2024) Retail Prescription Drug Expenditures, 2013-2024.
Total U.S. prescription drug spending, in $ billions:
Actual Projected
Part D begins!
2. SOURCE: DHHS ASPE Issue Brief, “Medicare Part B Drugs: Pricing and Incentives,” Table 1, March 2016, and 2016 Medicare Trustees
Report (Tables III.D3 and V.B1).
Total Medicare Spending in 2014 = $613.3 billion
13%
3%
84%
Part D drug spending
Part B drug spending
Other Medicare
spending
3. 7.4%
2.5%
9.2%
6.0%
SOURCE: Kaiser Family Foundation analysis of data from 2016 Medicare Trustees Report (Table III.D4).
Total Part D benefit
spending growth rates
(average annual growth)
Per capita Part D benefit
spending growth rates
(average annual growth)
Actual
2006-2015
Projected
2015-2025
Actual
2006-2015
Projected
2015-2025
4. SOURCE: Senate Finance Committee report, Appendix C, November 2015.
Spending on Hepatitis C drugs, in $ millions:
$116
$216
$356
$436
$491 $482 $481
$417
$373 $380
$421
$629 $628
$695
$864
$837
$773 $793
Jan
2014
Feb
2014
Mar
2014
Apr
2014
May
2014
Jun
2014
Jul
2014
Aug
2014
Sep
2014
Oct
2014
Nov
2014
Dec
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
Jun
2015
5. SOURCE: 2016 Medicare Trustees Report (Table V.D1).
$5,019 $5,522 $2,203
$6,901 $8,642 $3,861
2015
2025
3.2%
4.6%
5.8%
Part A Part B Part D
Average Medicare per beneficiary spending:
Projected average annual growth in Medicare per beneficiary
spending for Parts A, B, and D between 2015-2025
6. NOTE: Analysis excludes beneficiaries enrolled in Medicare Advantage plans.
SOURCE: Kaiser Family Foundation analysis of the Medicare Current Beneficiary Survey 2011 Cost & Use file.
Average Total Out-of-Pocket Spending on Services in 2011: $2,763
Long-Term
Care Facility
32%
Medical
Providers
23%
Prescription
Drugs
19%
Dental
11%
Outpatient Care
6%
SNF & Home Health
5%
Inpatient Care
4%
Prescription drugs as a share of beneficiary out-of-pocket
spending:
7. $383 $388 $373 $374 $389 $398 $409
$487
$566
$618
$658
$694
$730
$770
$811
$846
$310 $310 $320 $325 $310 $320
$360
$400 $410
$445
$485
$520
$550
$580
$610
$645
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
SOURCE: 2016 Medicare Trustees Report (Table V.E2).
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Annual Part D deductible
Annual Part D premium
Past and projected Medicare Part D premiums and deductibles:
8. 100% 100%
50%
86%
47.5%
72%
45%
58%
35%
44%
25% 25%
Brand-name drugs Generic drugs
2010 2012 2014 2016 2018 2020
SOURCE: Kaiser Family Foundation illustration of data from the Centers for Medicare & Medicaid Services.
Share of total drug costs beneficiaries pay in the coverage gap as
the “doughnut hole” closes:
9. 24%
33%
38%
66%
65%
65%
49%
51%
53%
39%
42%
43%
76%
67%
62%
34%
35%
35%
51%
49%
47%
61%
58%
57%
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000
Revlimid
Gleevec
Zytiga
Enbrel
Humira
Orencia
Copaxone
Tecfidera
Avonex
Harvoni
Sovaldi
Viekira Pak
NOTE: Analysis includes 20 national and near-national stand-alone prescription drug plans in Baltimore, MD (zip code 21201) and
reflects pricing at a Rite Aid pharmacy in this zip code.
SOURCE: Georgetown/Kaiser Family Foundation analysis of 2016 Medicare Plan Finder data.
HepatitisCMultiple
Sclerosis
Rheumatoid
Arthritis
Cancer
$6,608
$7,153
$6,516
$5,979
$6,448
$6,235
$4,413
$4,864
$4,872
$11,538
$8,503
$7,227
Up to catastrophic coverage phase
In catastrophic coverage phase
Median on-formulary out-of-
pocket costs in 2016:
10. Percent who say they favor each of the following:
86%
83%
76%
72%
48%
Requiring drug companies to release
information to the public on how they set their
drug prices
Allowing the federal government to negotiate
with drug companies to get a lower price on
medications for people on Medicare
Limiting the amount drug companies can
charge for high-cost drugs for illnesses like
hepatitis or cancer
Allowing Americans to buy prescription drugs
imported from Canada
Encouraging people to buy lower cost drugs by
requiring them to pay a higher share if they
choose a similar, higher cost drug
NOTE: Items asked of half sample.
SOURCE: Kaiser Family Foundation Health Tracking Poll (conducted August 6-11, 2015).