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Health Care Costs:

The Role of Technology and Chronic Conditions

Bruce Chernof, MD

President & CEO

Alliance for Health Reform: Health Care Cost SeriesMay 29, 2012

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Chronic Conditions & Functional Limitations Together Explain High Per-Person Medicare Spending

31%

15%

48%

51%

15%

32%

7% 2%

Enrollees Spending

Chronic conditions &functional limitations

3 or more chronicconditions only

1-2 chronic conditionsonly

No chronic conditions

Source: H. Komisar & J. Feder, Transforming Care for Medicare Beneficiaries with Chronic Conditions and Long-Term Care Needs: Coordinating Care Across All Services, The SCAN Foundation, October 2011.

Medicare Spends More, Per Capita, on Seniors with Chronic Conditions and Functional Impairment than Seniors with Only Chronic Conditions

DataBrief (2011) ● No. 22

Page 3

Annual Per Capita Medicare Spending in 2006, by Number of Chronic Conditions and Presence of Functional Impairment1

1 N = 22,104,694 with any chronic conditions and no functional impairment, N = 3,562,347 with any chronic conditions and functional impairment. Excludes beneficiaries who died during 2006.

$5,961

$2,626$4,039

$5,972$7,116

$10,133

$17,498 $18,223

$15,435

$13,283

$17,375

$19,763

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Any ChronicCondition

1 ChronicCondition

2 ChronicConditions

3 ChronicConditions

4 ChronicConditions

5 or More ChronicConditions

Seniors without functional impairment Seniors with functional impairment

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Dual Eligibles are Less than Half of Medicare Enrollees with Chronic Conditions and Functional Limitations

43% 48%

57% 52%

Enrollees Spending

"Non-Duals"

"Dual-Eligibles"

Source: H. Komisar & J. Feder, Transforming Care for Medicare Beneficiaries with Chronic Conditions and Long-Term Care Needs: Coordinating Care Across All Services, The SCAN Foundation, October 2011.

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