Section 1: Minnesota Health Care Spending and Cost Drivers

1. Section 1: Minnesota Health Care Spending and Cost Drivers • Minnesota health care spending by source of funds • Minnesota health care spending by type of service • Minnesota/U.S. health care spending comparisons • Minnesota private market trends: premiums, spending, and cost drivers

2. Minnesota Health Care Spending by Source of Funds

3. Minnesota Health Care Spending by Source of Funds, 2012 Total Spending $39.8 Billion *Other major private payers include, private worker’s compensation and auto medical insurance. **Major components of other public spending are MinnesotaCare, government workers’ compensation and Veterans Administration. Source: MDH Health Economics Program

4. Minnesota Health Spending by Source of Funds, 2008 to 2012 Millions of Dollars Note: Detail may not sum to total due to rounding. Revisions to historic time series may lead to slight variation from previously published estimates.Source: MDH Health Economics Program

5. Shares of Minnesota Health Spending by Source of Funds, 2008 to 2012 Note: Detail may not sum to 100% due to rounding. Revisions to historic time series may lead to slight variation from previously published estimates. Source: MDH Health Economics Program

6. Public Spending for Health Care in Minnesota: Federal, State, and Local Shares, 2012 Total Public Spending $18.7 Billion Source: MDH Health Economics Program

7. Public Programs’ Share of Population vs. Share of Health Care Spending, 2012 Source: MDH Health Economics Program

8. Minnesota Health Care Spending per Person by Payment Source, 2012 *Excludes Medicare Supplement insurance. # Excludes portion of expenses paid by Medicare Advantage enrollee premiums MA is Medical Assistance, GAMC is General Assistance Medical Care, MCHA is Minnesota Comprehensive Health Association. Individuals with dual coverage are included in each of the respective coverage options. Source: MDH Health Economics Program

9. Shares of Health Care Spending Paid for by Businesses, Government, and Individuals, 2012 Health care spending by local and state government employers included in the business spending for health care. Source: MDH Health Economics Program

10. Minnesota Health Care Spending by Type of Service

11. Minnesota Health Care Spending by Type of Service, 2012 Total Spending $39.8 Billion *Includes home health care Source: MDH Health Economics Program

12. Minnesota Health Care Spending by Type of Service, 2008 to 2012 Spending in Millions of Dollars Note: Revisions to historic time series may lead to slight variation from previously published estimates. Source: MDH Health Economics Program

13. Shares of Minnesota Health Care Spending by Type of Service, 2008 to 2012 Note: Revisions to historic time series may lead to slight variation from previously published estimates. Source: MDH Health Economics Program

14. Factors Accounting for Health Care Spending Growth in Minnesota, 2002 to 2012 Note: Revisions to historic time series may lead to slight variation from previously published estimates. Source: MDH Health Economics Program

15. Minnesota/U.S. Health Care Spending Comparisons

16. Minnesota and U.S. Health Care Spending:Where It Came From, 2012 Sources: MDH Health Economics Program and Centers for Medicare & Medicaid Services (estimated spending for health consumption expenditures).

17. Minnesota and U.S. Health Care Spending: Where it Went, 2012 Note: Some spending included in hospital services in the national estimate is defined as long term care spending in the Minnesota estimates. Sources: MDH Health Economics Program and Centers for Medicare & Medicaid Services (estimated spending for health consumption expenditures).

18. Health Care Spending Per Capita and as a Share of the Economy, Minnesota and U.S. Note: Revisions to historic time series may lead to slight variation from previously published estimates. Sources: MDH Health Economics Program, Centers for Medicare & Medicaid Services (spending for health consumption expenditures).

19. Minnesota Private Market Trends: Premiums, Spending, and Cost Drivers

20. Growth in Private Health Insurance Premiums and Health Care Spending Fully-insured market only. Source: MDH Health Economics Program.

21. Difference Between Per Person Premiums and Spending as a Percent of Revenue Note: A positive number indicates that premiums were higher than spending, and a negative number indicates that spending was higher than premiums. Source: MDH Health Economics Program.

22. Key Minnesota Health Care Cost and Economic Indicators, 2000 to 2010 Health care cost is MN privately insured spending on health care services per person, and does not include enrollee out of pocket spending for deductibles, copayments/coinsurance, and services not covered by insurance. Sources: Health care cost data from Minnesota Department of Health, Health Economics Program; per capita personal income from U.S. Department of Commerce, Bureau of Economic Analysis; inflation data from U.S. Bureau of Labor Statistics (consumer price index); workers’ wages from MN Department of Employment and Economic Development

23. Total Cost Per Person and Health Plan & Enrollee Shares Source: MDH, Health Economics Program.

24. Health Care Cost Drivers: Spending Growth and Shares of Total Growth by Service, 2008 to 2010 Growth Rate Share of Spending Growth Note: Growth rates calculated as annual growth per enrollee over the 2-year period. “Other medical” includes skilled nursing facilities, home health care, emergency services, services of health professionals other than physicians and dentists, durable medical goods, and chemical dependency/mental health. Source: MDH Health Economics Program.

25. Additional Information from the Health Economics Program Available Online • Health Economics Program Home Page • www.health.state.mn.us/divs/hpsc/hep/index.html • Publications • http://www.health.state.mn.us/divs/hpsc/hep/publications/index.html • Health Care Market Statistics (Presentation Slide Decks) • www.health.state.mn.us/divs/hpsc/hep/chartbook/index.html • Interactive Health Insurance Statistics • https://pqc.health.state.mn.us/mnha/Welcome.action