Health Policy Data
One of the foremost concerns in health care policy today is the rising costs of care. Acumen
works on several projects that aim to develop and evaluate payment policy reforms with the
ultimate goal of lowering health care costs. As a first step for this kind of work, we must
understand the drivers of rising health care costs.
In this exercise, you will use historical Medicare data to analyze trends in the costs of inpatient
hospitalizations over time. You have been provided with an excerpt from the 2013 Medicare and
Medicaid Statistical Supplement to use as a primary resource. No additional references are
required; however, some basic background research may help in interpreting this data. Do not
worry about adjusting for inflation.
Prompt:
Investigate trends in the number of inpatient discharges and the amount of inpatient payments
financed by Medicare from 1994 to 2012. Compare these trends between two types of
beneficiary entitlement categories—aged and disabled—and consider the implications that these
trends may have on developing future cost-containment strategies.
In your analysis, please make sure to incorporate calculations that support your argument,
including at least the following calculations:
The percentage change in inpatient payments (total, per discharge, and per day) from
1994 to 2012, for aged and disabled beneficiaries.
The percentage change in the number of annual inpatient discharges from 1994 to 2012,
for aged and disabled beneficiaries.
The percentage of all inpatient payments expended for each entitlement type, in 1994 and
in 2012.
Explain your findings in a brief memo that you would deliver to a professional client. Assume
that this client is knowledgeable about Medicare and health care policy but has not studied the
results of the Statistical Supplement. Organize your findings into clear and informative summary
tables or charts that supplement your written conclusions. These may be integrated into the body
of your memo or included as an appendix.
The text of your memo (excluding tables and figures) should not exceed one page in length.
Definitions
The following terms are used in the Statistical Supplement:
Beneficiary: A person whose health care services are provided by Medicare.
Entitlement Type: The reason for which a beneficiary is eligible for Medicare.
Inpatient Hospital Stay: The period during which a beneficiary is treated in the hospital
setting following a formal admission. The length of an inpatient hospital stay is
measured in days.