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. Author manuscript; available in PMC: 2014 Nov 19.
Published in final edited form as: Brookings Pap Econ Act. 2013 Fall;2013:261–302. doi: 10.1353/eca.2013.0014

Table 3.

Growth Rates of Prices, Utilization, and Enrollments by Payer, 2007–11 (Percent)

Payer Price
growth
(real)
Utilization
growth
Enrollment
growth
Share of
payments
Share of
enrollees
Medicarea 0.9 1.4 2.5 30 16
Medicaidb −0.4 −0.1 4.7 22 19
Privatec 2.7 0.7 −1.3 48 65

Total (weighted) 1.5 0.7 0.4 100 100

Notes: The GDP deflator was 1.6 percent and was subtracted from column 1. To estimate aggregate price growth, we take a weighted average of component growth rates for the years 2007–2011, where the weights are total spending by component-year.

We take per enrollee spending growth, enrollment growth, share of payments, and share of enrollees from the data sets listed in figure 7. Utilization growth (gu) is calculated from nominal spending growth (gn) and price growth (gp) according to the equation:
1+gu=1+gn1+gp.

Total price and utilization growth rates are weighted by the share of payments. Enrollment growth is weighted by the share of enrollees.

a

Price growth in Medicare is based on estimates of nominal price growth of 2.5 percent per year between 2007 and 2010 by Levine and Buntin (2013).

b

Medicaid price growth is taken from Zuckerman and Goin (2012), who estimate that physician fees have risen by 4.9 percent in Medicaid between 2008 and 2012, which is an annualized growth rate of 1.2 percent.

c

Price growth for private payers is calculated based on Health Care Cost Institute calculations of price and utilization growth for inpatient, outpatient, physician, and prescription drug benefits in their 2010, 2011, and 2012 cost growth reports.