Welfare State

1. Welfare State Renea Scott Social Welfare 240 3rd December 2013

2. Purpose • The purpose of this research is to analyze whether Medicaid & Medicare spending per capita affects Life expectancy . • Question : Does Medicaid and Medicare Spending correlate with Life expectancy ? • Emphasizes on : Economic Implications : Long Term result : Higher Life Expectancy

3. Literature Review • In the Article , Long-Term Trends in Life Expectancy and Active Life Expectancy in the United States authors Kenneth G. Manton,XiliangGu and Vicki L. Lamb claim that growth in the Medicare and Medicaid programs, not Social Security, is the critical long term problem for the US economy. Medicare and Medicaid combined are projected to grow to almost 24 percent of GDP by 2080.

4. Literature Review • In the Article ,A Healthy Bottom Line:Healthy Life Expectancy as an Outcome Measure for Health Improvement Efforts author Mattew C. Stiefel, Rocco J. Perla and Bonnie L. Zell contend that In 2007 in the United States, 16.2 percent of GDP was spent on health care (Hartman et al. 2009), and in 2004, U.S. health spending per capita was 2.5 times greater than the median for the countries in the Organization for Economic Cooperation and Development (OECD) (Anderson, Frogner, and Reinhardt 2007). But according to the World Health Organization (WHO), in 2000 the United States ranked only twenty-eighth in the world in healthy life expectancy (Mathers et al. 2001).

5. Literature Review • In the Article , Increasing Longevity and Medicare Expenditure authorTim Miller  states “ The retirement of baby boomers during the next few decades will lead to very large increases in the number of Medicare enrollees. In addition, enrollees are increasingly likely to live to advanced ages. Older Medicare enrollees typically use more health care than younger enrollees and are more expensive; therefore increasing longevity is viewed as causing an increase in Medicare costs

6. Literature Review • In the Article , Improving Health: Measuring Effects of Medical Care authors John P. Bunker, Howard S. Frazier and Frederick defend the claim that lower regional death rates were associated with higher Medicare expenditures

7. Literature Review • In The Article, The U.S. Fiscal Problem: Where We Are, How We Got Here, and Where We're Going , Economist Alan J. Auerbach finds that federal spending on Medicare and Medicaid is predicted to continue to grow faster than GDP through 2030, due to growth in both the real cost of health care and the ratio of beneficiaries to the total population. This growth in medical care spending increases the primary deficit by 2.3% of GDP between 2004 and 2030. After 2030, demographic shifts alone add another .2% of GDP to the primary deficit

8. Bibliography Auerbach, Alan J. 1994. "The U.S. Fiscal Problem: Where we are, how we Got here, and Where we'Re Going." NBER Macroeconomics Annual 9:141-175. Bunker, John P., Howard S. Frazier and Frederick Mosteller. 1994. "Improving Health: Measuring Effects of Medical Care." The Milbank Quarterly 72(2):225-258. Manton, Kenneth G., XiLiangGu and Vicki L. Lamb. 2006. "Long-Term Trends in Life Expectancy and Active Life Expectancy in the United States." Population and Development Review 32(1):81-105.

9. Bibliography Miller, Tim. 2001. "Increasing Longevity and Medicare Expenditures." Demography 38(2):215-226. Rogers, Richard G. 1995. "Sociodemographic Characteristics of Long-Lived and Healthy Individuals." Population and Development Review 21(1):33-58. Stiefel, MattewC., Rocco J. Perlaand Bonnie L. Zell. 2010. "A Healthy Bottom Line: Healthy Life Expectancy as an Outcome Measure for Health Improvement Efforts." Milbank Quarterly 88(1):30-53.

10. Data Analysis • Retrieved the data from The Henry J. Kaiser Family Foundation • Downloaded the Data into the Excel Spread Sheet on Life Expectancy, Medicare and Medicaid Spending per State • Cleaned up the Information • Erased unnecessary Data • Divided the Medicaid and Medicare spending by 100 , so that they were not any major disparities when compared with Life expectancy.

11. Data Analysis • Selected 2D column and then selected the data of Medicare spending and its values into series then I added the axis Labels ,which were the name of the states • Selected 2D column and then selected the data of Medicaid spending into series and its values then I added the axis Labels ,which were the name of the states

12. Data Analysis • Then copy and pasted the chart for Medicaid spending and added the second series of Life expectancy • Then provided it with a Title : Medicaid Spending Vs. Life Expectancy • Then copy and pasted the chart for Medicare spending and added the second series of Life expectancy • Then provided it with a Title : Medicaid Spending Vs. Life Expectancy : Medicare Spending Vs. Life Expectancy

14. There is a great difference amongst Medicare Spending per capita amongst states

15. There is not much difference in Medicaid spending per Capita amongst states

16. No correlation between Medicare spending per capita and life expectancy

17. There is no correlation between Medicaid spending and Life Expectancy

18. Findings • States spend more on their Medicare when compared to our Medicaid . • There is no correlation between Medicare and Medicaid spending in regards to life expectancy.

19. Explanation • According to Richard Rogers ,life expectancy is difficult because the connections between length of life, health, and social relations are complex. Survival is influenced by a multitude of factors, including biological, social, and economic characteristic

20. Answer • Although ethnically it is a human right to have safety nets in regards to health and welfare , logically since there is no connection , States should not spend as much on Medicare and Medicaid.