States may save $ billions if a prescription drug benefit is added to Medicare

Nearly half of all Medicaid expenditure on prescription drugs is for Medicaid beneficiaries who are also eligible for Medicare (dual beneficiaries). A Commonwealth Fund study estimates that dual beneficiaries accounted for $16 billion or nearly half of the estimated $ 33 billion in Medicaid spending on prescription drugs in 2002. The state share of drug spending on dual eligible beneficiaries is estimated to be $7 billion.

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June 15, 2003

Nearly 70 percent of U.S. private health insurance spending is for services provided by health professionals and hospitals.

Increased spending on prescription drugs is often blamed for rising health insurance premiums, yet according to national health accounts projections by the Centers for Medicare and Medicaid Services, only 15 cents of every private health insurance dollar will be spent on prescription drugs in 2003. Coincidentally, in 2003, it is projected that the net cost of insurance, which is the difference between premiums and benefits, is also 15 cents of every private health insurance dollar

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May 31, 2003

Hospital costs drive Medicaid spending for depression

As America’s population ages, the treatment of chronic conditions will be a major health cost driver. Depression is one of the most costly chronic conditions for state Medicaid programs. A study of claims data from over 41,000 Oklahoma Medicaid patients revealed that depression patients had mean yearly costs of $5,505, second only to psychoses as the mostly costly condition among the study population. Hospital services accounted for more than two-thirds of the costs of treating depression followed by “other health professionals” which includes psychologists and social workers.

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May 24, 2003

Access to asthma medications may impact emergency department utilization of Medicaid enrollees with asthma.

Asthma is one of the leading diagnoses of hospitalizations paid for by Medicaid. In 2000, Medicaid paid for nearly 21 percent of all hospitalizations for all diagnoses, but more than 33 percent of all hospitalizations for asthma.

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May 18, 2003

An aging population and the increased incidence of diabetes will have a major impact on Medicaid programs.

Diabetes today has a significant impact on the healthcare system. In fact, one out of every ten U.S. health dollars is presently spent on diabetes. This trend is likely to continue as the prevalence of diabetes increases dramatically with age. More than five times as many people between the ages of 45 and 64 have diabetes compared to those aged 18 to 44. Over the next decade the proportion of the American population between the ages of 18 and 44 will decline by 7 percent while the aged 45 to 64 proportion will increase 15 percent.3 This means that if current rates of diabetes prevalence continue over the next decade there will be an enormous increase in the number of Americans suffering from diabetes.

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October 06, 2002