Restructure Medicare & Medicaid: Social Factors— Older People Spend 2x More per Year on Healthcare than Younger Americans Share of Population vs. Healthcare Spending by Age Group, 2004 A $16,000 e 63% @) = BYE = = ee ae ee ee = ee es a ese = a = nes aT EE ar xs a OD > s 53% 5 m7 $12,000 § we 50% ----------------------------- i a 2 a £ $10,000 s G 40% ne i ny = a . $8,000 £30% | ---4------------ ---- r s ids $6,000 © Fe Oo 20% ----- o 222222 eres eee | ---4------------ ---- 5 - 13% [ $4,000 a : : 12% 5 % 10% $2,000 E S $ | a2 0% $0 = Share of Population = Share of Healthcare Spending © Annual Healthcare Spending per Person KP Source: Dept. of Health & Human Services, US Census Bureau. i USA Inc. | What Might a Turnaround Expert Consider? 285 Restructure Medicare & Medicaid: Social Factors— ~28% of Annual Medicare Spending Geared Toward End-of-Life Care (Last 12 Months) 2008 Medicare Total Benefit Expense $363B * People 65+ spent $14,797 per Medicare Spending on year on healthcare on average in Recipient’s Final Year of Life $101B 2004, 3x what working-age people (19-64) spend. 28% * It’s notable that ~28% of average Medicare recipient spending occurs in the final year of life and 12% occurs in the final two months of life. KP Sources: CMS, Medpac, Report to the Congress: Medicare Payment Policy, 3/10 Ce USA Inc. | What Might a Turnaround Expert Consider? 286 HOUSE_OVERSIGHT_020984