Exhibit 2.

Decomposition Of Per Capita Spending Growth In A Nonelderly, Commercially Insured Population, 2003–07

Contributing factors	Growth in spending per capita ($)	Contribution to total spending growth (%)
Total change in spending per capita	486.16	—a
Change in spending due to
Cost per episode	355.57	73.1
Episode mix	−20.51	−4.2
Episodes per person	172.66	35.5
Interaction terms	−21.56	−4.4

SOURCE Authors’ analysis of data from the MarketScan Commercial Claims and Encounters Database, 2003 and 2007.

NOTES Each line represents the contribution to the change in spending per capita holding the other components of the decomposition fixed at their 2003 levels. Direct adjustment was used to standardize age and sex to 2003 levels to account for spending growth attributable to demographic changes in the population.

^aNot applicable.