Transcript Annual Percent Change in National Health Expenditures, by Selected Sources of Funds, 1960-2012 20% 15% 10% 4.8% 5% 3.8% 3.3% 3.2% 0% Private Health Insurance Out-of-Pocket Medicare Medicaid -5% NOTE: This figure omits national health spending.

Annual Percent Change in National Health Expenditures, by
Selected Sources of Funds, 1960-2012
20%
15%
10%
4.8%
5%
3.8%
3.3%
3.2%
0%
1960
1970
1980
1990
2000
2001
Private Health Insurance
2002
2003
2004
2005
Out-of-Pocket
2006
2007
Medicare
2008
2009
2010
2011
2012
Medicaid
-5%
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).