Annual Percent Change in National Health Expenditures, by Selected Sources of Funds, 1960-2012

1. Annual Percent Change in National Health Expenditures, by Selected Sources of Funds, 1960-2012 NOTE: This figure omits national health spending that belongs in the categories of Other Public Insurance Programs, Other Third Party Payers and Programs, Public Health Activity, and Investment, which together represented about 20% of total national health spending in 2012. Medicare and Medicaid were enacted in 1965; by January 1970, all states but two were participating in Medicaid. Implementation of the Medicare Part D prescription drug benefit was the major cause of the 2006 increase in Medicare spending and decrease in Medicaid spending (Medicare replaced Medicaid drug coverage for dual eligibles). SOURCE: Kaiser Family Foundation calculations using NHE data from Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group, at http://www.cms.hhs.gov/NationalHealthExpendData/ (see Historical; National Health Expenditures by type of service and source of funds, CY 1960-2012; file nhe2012.zip).