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. 2002 Spring;23(3):131–159.

Table 1. Expenditures for Health Services and Supplies, by Type of Sponsors: United States, Selected Calendar Years 1987-2000.

  • Spending for health services and supplies reached $1.3 trillion in 2000, almost three times the 1987 spending level of $477.8 billion. There are two main sponsor components of health services and supplies: private and public.
  • The private share of health services and supplies, including spending by business and households, declined significantly between the late 1980s and 1993 (from 69 to 64 percent) and then remained at 63-64 percent through 2000.
  • The percent of spending by private business remained relatively stable over the 14-year time span, at around 26 percent. Private business spending includes employer contributions to PHI premiums and to the Medicare HI Trust Fund, as well as expenditures for workers' compensation, temporary disability insurance, and industrial inplant health services.
  • Household spending as a share of health services and supplies has declined from 39 percent in 1987 to 34 percent in 1993 and then remained at about that level through 2000. Household spending covers employee contributions to PHI as well as individual policy premiums. Employee contributions and premiums paid by individuals to the Medicare HI Trust Fund and to the Medicare SMI Trust Fund are also included. Out-of-pocket spending is also found in this category.
  • Spending by public sponsors (including Federal, State, and local governments) as a portion of total health services and supplies spending rose from 31 percent in 1987 to 36 percent in 1993 and then remained approximately constant over the next 7 years (1994-2000). Medicare and Medicaid are the largest health care programs sponsored by the government. The portion of Medicare costs not financed by earmarked payroll taxes and premiums is counted as Federal Government expenditures in this article. In addition to health insurance premiums paid as a benefit to Federal, State, and local government workers, programs such as maternal and child heath, vocational rehabilitation, and Indian Health Services, as well as services provided through the Department of Veterans Affairs and Department of Defense, are incorporated into this category.
Type of Sponsor 1987 1993 1994 1995 1996 1997 1998 1999 2000
Amount in Billions
Total $477.8 $856.3 $904.8 $957.7 $1,005.7 $1,053.9 $1,111.5 $1,175.0 $1,255.5
 Private 331.5 548.8 573.0 607.3 633.4 666.3 716.4 754.8 806.3
  Private Business 123.3 223.7 237.8 251.2 265.5 270.2 288.1 307.6 334.5
  Household 185.8 288.9 297.5 314.4 323.2 347.7 376.5 393.9 418.8
  Other Private Revenues 22.4 36.2 37.7 41.7 44.7 48.5 51.8 53.3 53.0
 Public 146.2 307.5 331.8 350.4 372.3 387.6 395.1 420.2 449.3
  Federal Government 75.1 175.5 184.9 196.6 213.0 218.9 214.9 223.7 237.1
  State and Local Government 71.1 132.0 146.9 153.8 159.3 168.7 180.3 196.5 212.1
Percent Distribution
Share of Total 100 100 100 100 100 100 100 100 100
 Private 69 64 63 63 63 63 64 64 64
  Private Business 26 26 26 26 26 26 26 26 27
  Household 39 34 33 33 32 33 34 34 33
  Other Private Revenues 5 4 4 4 4 5 5 5 4
 Public 31 36 37 37 37 37 36 36 36
  Federal Government 16 20 20 21 21 21 19 19 19
  State and Local Government 15 15 16 16 16 16 16 17 17
Percent Growth from Prevous Year Shown
Growth 10.2 5.7 5.9 5.0 4.8 5.5 5.7 6.9
 Private 8.8 4.4 6.0 4.3 5.2 7.5 5.4 6.8
  Private Business 10.4 6.3 5.6 5.7 1.8 6.6 6.8 8.7
  Household 7.6 3.0 5.7 2.8 7.6 8.3 4.6 6.3
  Other Private Revenues 8.3 4.1 10.6 7.4 8.4 6.8 2.9 -0.6
 Public 13.2 7.9 5.6 6.2 4.1 1.9 6.3 6.9
  Federal Government 15.2 5.4 6.3 8.3 2.8 -1.8 4.1 6.0
  State and Local Government 10.9 11.2 4.7 3.6 5.9 6.9 9.0 7.9

NOTE: Columns may not add to figures shown because of rounding.

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary: Data from the National Health Statistics Group.