Exhibit 7.9: Funding of Uncompensated Care to the Uninsured
Federal spending is the largest and most important component of funding for the health care safety net, which is the informal network of hospitals, clinics, community health centers, and other community-based providers that provide most of the uncompensated care received by the uninsured. Federal health care safety net spending rose from $19.8 billion in 2001 to $22.8 billion in 2004, an increase of 15.4%. However, in inflation-adjusted terms, the increase was only 1.3% (from $22.5 billion to $22.8 billion). Since the number of uninsured increased 11.2% during this period (from 41,207,000 to 45,820,000), Federal spending per uninsured person actually declined 8.9% (from $546 in 2001 to $498 in 2004).
Federal Spending on the Health Care Safety Net ($ billions), 2001-2004
| 2001 | 2002 | 2003 | 2004 | % Change 2001-2004 |
Federal Spending, Current Dollars | $19.8 | $20.5 | $21.9 | $22.8 | 15.4% |
Inflation-Adjusted Federal Spending | $22.5 | $22.3 | $22.9 | $22.8 | 1.3% |
Number of Uninsured (000's) | 41,207 | 43,574 | 44,961 | 45,820 | 11.2% |
Inflation-Adjusted Federal Spending per Uninsured Person | $546 | $512 | $509 | $498 | -8.9% |
Notes: Inflation adjustment using the medical care component of the consumer price index (almost 14% increase between 2001 and 2004) and shown in constant 2004 dollars.
Source: Jack Hadley et al., Kaiser Commission on Medicaid and the Uninsured, Federal Spending on the Health Care Safety Net from 2001-2004: Has Spending Kept Pace with the Growth in the Uninsured?, November 2005, pp. 5, 26, and 27, at http://www.kff.org/uninsured/7425.cfm.
