SECTION II: FINANCIAL SECTION
FY 2016 HHS Agency Financial Report
Topics In This Section: Message from the Chief Financial Officer | Report of the Independent Auditors | Department’s Response to the Report of the Independent Auditors | Principal Financial Statements | Notes to the Principal Financial Statements | Required Supplementary Stewardship Information | Required Supplementary Information
Message from the Chief Financial Officer
I am pleased to join the Secretary in presenting the Department of Health and Human Services’ (HHS) Fiscal Year (FY) 2016 Agency Financial Report. HHS oversees one of the largest budgets in the world, managing one of every four dollars spent by the federal government. Serving as effective stewards of public funds is an integral component of achieving our mission.
This year, we obtained an unmodified (clean) opinion on the Consolidated Balance Sheets, Statement of Net Cost, Statement of Changes in Net Position, and the Combined Statement of Budgetary Resources. The auditors identified one material weakness and two significant deficiencies. The auditors disclaimed providing an opinion on the Statement of Social Insurance and the Statement of Changes in Social Insurance Amounts, primarily due to the uncertainties surrounding provisions of the Affordable Care Act and the impact of potential changes in law that would impact underlying assumptions of financial projections. These statements were developed based upon current law using information from the 2016 Medicare Trustees Report, as required by standards issued by the Federal Accounting Standards Advisory Board.
During FY 2016, HHS continued to make progress in executing its multi-year financial systems modernization initiative to strengthen system security, reliability, and availability, as well as target remediation of the Department’s material weakness pertaining to information technology (IT). Our efforts included:
- Completing the major upgrade of our core financial system in December 2015 – on-time, on-budget, and fully functional – enabling HHS to mitigate mission risk, improve functionality and performance, and strengthen overall system controls and security.
- Transitioning key financial systems to a Federal Risk and Authorization Management Program certified cloud service provider, supporting governmentwide IT priorities and further enhancing system security, reliability, availability, performance, and scalability.
- Maturing the overall financial systems security and controls environment, including strengthening policy development and monitoring; proactively monitoring emerging issues; and coordinating a Department-wide initiative to systematically address HHS’s IT material weakness by defining the complete problems, identifying root causes, and implementing collaborative solutions.
We also made significant progress in remediating significant deficiencies related to Financial Reporting Systems, Analyses, and Oversight; and the Financial Management Close and Review Process. Our remediation efforts included:
- Continuing to review, update, and develop HHS policies in financial management, grants, and acquisitions to ensure compliance with applicable federal regulations and guidance.
- Establishing a mature and structured corrective action planning process, consisting of increased Operating Division (OpDiv) communication and support through a standardized approach, policy, guidance, training, and on-site technical assistance
HHS also achieved significant accomplishments in several additional areas that strengthen Department management:
- Continued implementation of Enterprise Risk Management across the Department and in its OpDivs, consistent with the July 2016 release of OMB Circular A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control.
- Established a strategy, cross-functional governance structure, and implementation teams to support the Digital Accountability and Transparency Act reporting requirements by May 2017.
- Expanded HHS’s business intelligence and analytics capabilities through the Financial Business Intelligence System – enhancing access to financial management information, supporting internal and external reporting requirements, and facilitating effective stewardship and decision making.
- Continued to improve governance through the Financial Management Governance Board, allowing HHS to effectively address enterprise-wide financial management issues related to policies, data, and technology, and enhance collaboration across the Department’s financial management community.
Our Chief Financial Officer (CFO) community is dedicated to working together to improve Department-wide operations, financial reporting and systems, while focusing our efforts on strengthening internal control, maintaining data integrity, increasing data transparency, and reporting reliable information to support effective internal and external decision making.
The Association of Government Accountants presented HHS with the Certificate of Excellence in Accountability Reporting award for our FY 2015 AFR, the third consecutive year we earned recognition for our financial report. The award is given to federal agencies following a rigorous, independent review against a comprehensive set of standards. We were also presented with a Best in Class award for our Improper Payments and Elimination Act Reporting Detail.
The achievements depicted in this report are a reflection of the earnest effort and diligent dedication of our employees and partners who collaborate throughout the year to serve our mission and the American people. We will continue to conscientiously serve our stakeholders in an accountable and transparent manner.
/Ellen G. Murray/
Ellen G. Murray
Assistant Secretary for Financial Resources and
Chief Financial Officer
November 14, 2016
Report of the Independent Auditors
Report of the Independent Auditors
Department’s Response to the Report of the Independent Auditors
To: Daniel R. Levinson, Inspector General
From: Ellen G. Murray, Assistant Secretary for Financial Resources and Chief Financial Officer
Subject: FY 2016 Financial Statement Audit
We appreciate the opportunity to comment on the Independent Auditors’ Report concerning the audit of our FY 2016 financial statements. We are pleased that the independent auditors found HHS’s FY 2016 financial statements and notes were presented fairly, in all material respects, and in conformity with the U.S. generally accepted accounting principles. In response to their Report on Internal Control, we generally concur with their findings and are prepared to develop corrective action plans to address those findings. HHS leadership is dedicated to effectively resolving our challenges.
Central to HHS’s information technology (IT) remediation effort is the establishment of a cross-Department, cross-functional IT Material Weakness Working Group (IT MWWG), which has met monthly since inception in June 2015. The IT MWWG is working on two fronts – coordinating responsive efforts to address current audit findings and vulnerabilities, as well as proactive efforts to mature the security and controls environment going forward. With regard to current findings, the IT MWWG has coordinated with system owners across the Department to resolve issues, identify target completion dates, and monitor progress. The size and complexity of our IT environment continues to pose substantial challenges as we address weaknesses across multiple systems, organizations, and business processes.
The Department’s progress to address our significant deficiencies can be attributed to a robust and structured corrective action planning process sustained through effective communication and collaboration with the Operating Divisions. Corresponding policy, guidance, training, and on-site technical assistance to the Operating Divisions are key components of the process.
We take remediation of our deficiencies seriously and we will continue to focus our efforts and resources on addressing our longstanding and complex financial reporting audit findings. Under the strategic direction of the HHS Risk Management and Financial Oversight Board, the Department and its Operating Divisions are committed to sound financial management that delivers reliable and actionable information for both internal and external decision makers and stakeholders.
We would like to thank the Office of Inspector General (OIG) and our independent auditors, Ernst & Young LLP, for your efforts on our behalf. We appreciate the continued collaboration of the OIG to improve our stewardship and transparency of taxpayer funds.
/Ellen G. Murray/
Ellen G. Murray
Assistant Secretary for Financial Resources and
Chief Financial Officer
November 14, 2016
Principal Financial Statements
U.S. Department of Health and Human Services
Consolidated Balance Sheet
As of September 30, 2016 and 2015
(in Millions)
Line Item | 2016 | 2015 |
---|---|---|
Assets (Note 2) | ||
Intragovernmental Assets | ||
Fund Balance with Treasury (Note 3) | $237,759 | $219,459 |
Investments, Net (Note 4) | 262,077 | 269,651 |
Accounts Receivable, Net (Note 5) | 1,012 | 1,005 |
Other Assets (Note 8) | 239 | 178 |
Total Intragovernmental Assets | 501,087 | 490,293 |
Accounts Receivable, Net (Note 5) | 24,203 | 21,915 |
Inventory and Related Property, Net (Note 6) | 9,399 | 9,516 |
General Property, Plant and Equipment, Net (Note 7) | 5,665 | 5,917 |
Advances (Note 8) | 21,480 | 33 |
Other | 819 | 1,121 |
Total Assets | 562,653 | 528,795 |
Stewardship Land (Notes 1 and 20) | ||
Liabilities (Note 9) | ||
Intragovernmental Liabilities | ||
Accounts Payable | 339 | 309 |
Other Liabilities (Note 13) | 7,063 | 3,609 |
Total Intragovernmental Liabilities | 7,402 | 3,918 |
Accounts Payable | 981 | 574 |
Entitlement Benefits Due and Payable (Note 10) | 108,230 | 108,149 |
Accrued Liabilities (Note 12) | 14,420 | 14,250 |
Federal Employee and Veterans’ Benefits (Note 11) | 12,892 | 12,072 |
Contingencies and Commitments (Note 14) | 12,394 | 9,105 |
Other Liabilities (Note 13) | 4,963 | 3,320 |
Total Liabilities | 161,282 | 151,388 |
Net Position | ||
Unexpended Appropriations - Funds from Dedicated Collections (Note 19) | 35,912 | 30,184 |
Unexpended Appropriations - All Other Funds | 128,129 | 116,089 |
Cumulative Results of Operations - Funds from Dedicated Collections (Note 19) | 233,470 | 221,480 |
Cumulative Results of Operations - All Other Funds | 3,860 | 9,654 |
Total Funds from Dedicated Collections | 269,382 | 251,664 |
Total All Other Funds | 131,989 | 125,743 |
Total Net Position | 401,371 | 377,407 |
Total Liabilities and Net Position | $562,653 | $528,795 |
The accompanying “Notes to the Principal Financial Statements” are an integral part of these statements.
U.S. Department of Health and Human Services
Consolidated Statement of Net Cost
For the Years Ended September 30, 2016 and 2015
(in Millions)
2016 | 2015 | |
---|---|---|
Responsibility Segments | ||
Centers for Medicare & Medicaid Services (CMS) | ||
Gross Cost | $1,044,615 | $1,011,350 |
Exchange Revenue | (91,964) | (98,030) |
CMS Net Cost of Operations | 952,651 | 913,320 |
Other Segments: | ||
Administration for Children and Families (ACF) | 51,515 | 50,300 |
Administration for Community Living (ACL) | 2,058 | 1,755 |
Agency for Healthcare Research and Quality (AHRQ) | 348 | 359 |
Centers for Disease Control and Prevention (CDC) | 12,098 | 10,517 |
Food and Drug Administration (FDA) | 4,617 | 4,225 |
Health Resources and Services Administration (HRSA) | 10,223 | 9,158 |
Indian Health Service (IHS) | 6,204 | 6,158 |
National Institutes of Health (NIH) | 30,790 | 29,985 |
Office of the Secretary (OS) | 3,176 | 3,174 |
Program Support Center (PSC) | 2,033 | 1,942 |
Substance Abuse and Mental Health Services Administration (SAMHSA) | 3,636 | 3,391 |
Other Segments Gross Cost of Operations before Actuarial Gains and Losses | 126,698 | 120,964 |
Actuarial (Gains) and Losses Commissioned Corp Retirement and Medical Plan | ||
Medical Plan (Note 11) | 483 | (249) |
Other Segments Gross Cost of Operations after Actuarial Gains and Losses | 127,181 | 120,715 |
Exchange Revenue | (5,060) | (4,006) |
Other Segments Net Cost of Operations | 122,121 | 116,709 |
Net Cost of Operations (Note 15) | $1,074,772 | $1,030,029 |
The accompanying “Notes to the Principal Financial Statements” are an integral part of these statements.
U.S. Department of Health and Human Services
Consolidated Statement of Changes in Net Position
For the Years Ended September 30, 2016
(in Millions)
2016 | ||||
---|---|---|---|---|
Funds From Dedicated Collections | All Other Funds | Eliminations | Consolidated Total | |
Cumulative Results of Operations: | ||||
Beginning Balances | $221,480 | $9,654 | - | $231,134 |
Budgetary Financing Sources: | ||||
Other Adjustments (Rescissions, etc.) (+/-) | - | (857) | - | (857) |
Appropriations Used | 323,452 | 495,197 | - | 818,649 |
Non-exchange Revenue | ||||
Non-exchange Revenue - Tax Revenue | 250,472 | - | - | 250,472 |
Non-exchange Revenue - Investment Revenue | 9,938 | 17 | - | 9,955 |
Non-exchange Revenue - Other | 3,980 | - | - | 3,980 |
Donations and Forfeitures of Cash and Cash Equivalents | 80 | - | - | 80 |
Transfers-in/out without Reimbursement | (4,447) | 2,768 | - | (1,679) |
Other (+/-) | - | 1 | - | 1 |
Other Financing Sources (Non-Exchange): | ||||
Donations and Forfeitures of Property | - | 7 | - | 7 |
Transfers-in/out Without Reimbursement (+/-) | (4) | 7 | - | 7 |
Imputed Financing | 38 | 736 | (294) | 480 |
Other (+/-) | 134 | (257) | - | (123) |
Total Financing Sources | 583,643 | 497,619 | (294) | 1,080,968 |
Net Cost of Operations (+/-) | 571,653 | 503,413 | (294) | 1,074,722 |
Net Change | 11,990 | (5,794) | - | 6,196 |
Cumulative Results of Operations: | 233,470 | 3,860 | - | 237,330 |
Unexpended Appropriations: | ||||
Beginning Balances | 30,184 | 116,089 | - | 146,273 |
Budgetary Financing Sources: | ||||
Appropriations Received | 351,309 | 596,875 | - | 948,184 |
Appropriations Transferred in/out | - | (16) | - | (16) |
Other Adjustments | (22,129) | (89,622) | - | (111,751) |
Appropriations Used | (323,452) | (495,197) | - | (818,649) |
Total Budgetary Financing Sources | 5,728 | 12,040 | - | 17,768 |
Total Unexpended Appropriations | 35,912 | 128,129 | - | 164,041 |
Net Position | $269,382 | $131,989 | - | $401,371 |
The accompanying “Notes to the Principal Financial Statements” are an integral part of these statements.
U.S. Department of Health and Human Services
Consolidated Statement of Changes in Net Position
For the Year Ended September 30, 2015
(in Millions)
2015 | ||||
---|---|---|---|---|
Funds From Dedicated Collections | All Other Funds | Eliminations | Consolidated Total | |
Cumulative Results of Operations: | ||||
Beginning Balances | $227,551 | $6,981 | - | $234,532 |
Budgetary Financing Sources: | ||||
Other Adjustments (Rescissions, etc.) (+/-) | - | (746) | - | (746) |
Appropriations Used | 295,986 | 478,803 | - | 774,789 |
Non-exchange Revenue | ||||
Non-exchange Revenue - Tax Revenue | 237,972 | - | - | 237,972 |
Non-exchange Revenue - Investment Revenue | 10,854 | 5 | - | 10,859 |
Non-exchange Revenue - Other | 3,557 | - | - | 3,557 |
Donations and Forfeitures of Cash and Cash Equivalents | 75 | - | - | 75 |
Transfers-in/out without Reimbursement | (4,673) | 3,467 | - | (1,206) |
Other (+/-) | - | (1) | - | (1) |
Other Financing Sources (Non-Exchange): | ||||
Donations and Forfeitures of Property | - | 10 | - | 10 |
Transfers-in/out Without Reimbursement (+/-) | (6) | (8) | - | (14) |
Imputed Financing | 30 | 668 | (204) | 494 |
Other (+/-) | 1 | 841 | - | 842 |
Total Financing Sources | 543,796 | 483,039 | (204) | 1,026,631 |
Net Cost of Operations (+/-) | 549,867 | 480,366 | (204) | 1,030,029 |
Net Change | (6,071) | (2,673) | - | (3,398) |
Cumulative Results of Operations: | 221,480 | 9,654 | - | 231,134 |
Unexpended Appropriations: | ||||
Beginning Balances | 16,215 | 107,427 | - | 123,642 |
Budgetary Financing Sources: | ||||
Appropriations Received | 288,636 | 542,401 | - | 831,037 |
Appropriations Transferred in/out | - | 387 | - | 387 |
Other Adjustments | 21,319 | (55,323) | - | (34,004) |
Appropriations Used | (295,986) | (478,803) | - | (774,789) |
Total Budgetary Financing Sources | 13,969 | 8,662 | - | 22,631 |
Total Unexpended Appropriations | 30,184 | 116,089 | - | 146,273 |
Net Position | $251,664 | $125,743 | - | $377,407 |
The accompanying “Notes to the Principal Financial Statements” are an integral part of these statements.
U.S. Department of Health and Human Services
Consolidated Statement of Budgetary Resources
For the Years Ended September 30, 2016 and 2015
in Millions)
2016 | 2015 | |||
---|---|---|---|---|
Budgetary | Non-Budgetary Credit Reform Financing Account | Budgetary | Non-Budgetary Credit Reform Financing Account | |
Budgetary Resources: | ||||
Unobligated Balance, Brought Forward, Oct 1 | $65,622 | $2 | $37,878 | $3 |
Recoveries of Prior Year Unpaid Obligations | 36,333 | - | 26,380 | - |
Other Changes in Unobligated Balance | (3,098) | - | 20,176 | - |
Unobligated Balance from Prior Year Budget Authority, Net | 98,857 | 2 | 84,434 | 3 |
Appropriations (Discretionary and Mandatory) | 1,540,233 | - | 1,425,607 | - |
Borrowing Authority (Discretionary and Mandatory) | 3,720 | 19 | - | 50 |
Spending Authority from Offsetting Collections (Discretionary and Mandatory) | 24,844 | 638 | 32,931 | 80 |
Total Budgetary Resources (Note 23) | 1,667,654 | 659 | 1,542,972 | 133 |
Status of Budgetary Resources: | ||||
Obligations Incurred (Notes 18, 22, and 23) | 1,607,771 | 32 | 1,477,350 | 131 |
Unobligated Balance, End of Year: | ||||
Apportioned | 24,982 | 8 | 26,449 | - |
Exempt from Apportionment (Note 16) | (7,710) | - | (2,621) | - |
Unapportioned, Unexpired Accounts | 5,082 | 619 | 7,169 | 2 |
Unexpired Unobligated Balance, End of Year | 37,529 | 627 | 30,977 | 2 |
Expired Unobligated Balance, End of Year | 37,529 | - | 34,625 | - |
Total Unobligated Balance, End of Year | 59,883 | 627 | 65,622 | 2,/span> |
Total Budgetary Resources (Note 23) | 1,667,654 | 659 | 1,542,972 | 133 |
Change in Obligated Balance: | ||||
Unpaid Obligations: | ||||
Unpaid Obligations, Brought Forward, Oct 1 | 236,348 | 375 | 216,166 | 998 |
Obligations Incurred (Notes 18 and 23) | 1,607,771 | 32 | 1,477,350 | 131 |
Outlays (Gross) | (1,550,188) | (370) | (1,430,984) | (754) |
Actual Transfers, unpaid obligations | - | - | 196 | - |
Recoveries of Prior Year Unpaid Obligations | (36,333) | - | (26,380) | - |
Unpaid Obligations, End of Year | 257,598 | 37 | 236,348 | 375 |
Uncollected Payments: | ||||
Uncollected Customer Payments from Federal Sources, Brought Forward, Oct 1 | (22,124) | (160) | (11,838) | (430) |
Change in Uncollected Customer Payments from Federal Sources | (4,342) | 145 | (10,286) | 270 |
Uncollected Payments from Federal Sources, End of Year | (26,466) | (15) | (22,124) | (160) |
Memorandum (non-add) Entries: | ||||
Obligated Balance, Start of Year | 214,224 | 215 | 204,328 | 568 |
Obligated Balance, End of Year | 231,132 | 22 | 214,224 | 215 |
Budget Authority and Outlays, Net: | ||||
Budget Authority, Gross (Discretionary and Mandatory) | 1,568,797 | 657 | 1,458,538 | 130 |
Actual Offsetting Collections (Discretionary and Mandatory) | (22,019) | (782) | (23,260) | (350) |
Change in Uncollected Customer Payments from Federal Sources (Discretionary and Mandatory) | (4,342) | 145 | (10,286) | 270 |
Recoveries of Prior Year Paid Obligations (Discretionary and Mandatory) | 513 | - | - | - |
Budget Authority, Net (Discretionary and Mandatory) | 1,542,949 | 20 | 1,424,992 | 50 |
Outlays, Gross (Discretionary and Mandatory) | 1,550,188 | 370 | 1,430,984 | 754 |
Actual Offsetting Collections (Discretionary and Mandatory) | (22,019) | (782) | (23,260) | (350) |
Outlays, Net (Discretionary and Mandatory) | 1,528,169 | (412) | 1,407,724 | 404 |
Distributed Offsetting Receipts | (428,128) | - | (380,187) | - |
Agency Outlays, Net (Discretionary and Mandatory) | $1,100,537 | $412 | $1,027,537 | $404 |
The accompanying “Notes to the Principal Financial Statements” are an integral part of these statements.
U.S. Department of Health and Human Services
Statement of Social Insurance (unaudited)
75-Year Projection as of January 1, 2016 and Prior Base Years
in Billions)
Estimates from Prior Years
|
|||||
---|---|---|---|---|---|
2016 | 2015 | 2014 | 2013 | 2012 | |
Actuarial present value for the 75-year projection period of estimated future income (excluding interest) received from or on behalf of: (Notes 24 and 25) | |||||
Current participants who, in the starting year of the projection period: | |||||
Have not yet attained eligibility age | |||||
HI | $10,294 | $9,134 | $8,398 | $8,147 | $7,929 |
SMI Part B | 19,386 | 17,027 | 17,127 | 15,227 | 14,431 |
SMI Part D | 7,659 | 6,424 | 5,928 | 5,871 | 5,866 |
Have attained eligibility age (age 65 or over) | |||||
HI | 455 | 382 | 332 | 301 | 302 |
SMI Part B | 3,660 | 3,300 | 2,873 | 2,620 | 2,395 |
SMI Part D | 952 | 887 | 775 | 722 | 694 |
Those expected to become participants | |||||
HI | 9,952 | 8,386 | 7,812 | 7,744 | 7,367 |
SMI Part B | 4,437 | 3,668 | 4,311 | 3,530 | 3,333 |
SMI Part D | 3,602 | 2,845 | 2,609 | 2,617 | 2,568 |
All current and future participants | |||||
HI | 20,701 | 17,902 | 16,542 | 16,192 | 15,598 |
SMI Part B | 27,484 | 23,995 | 24,311 | 21,377 | 20,159 |
SMI Part D | 12,213 | 10,156 | 9,312 | 9,211 | 9,128 |
Actuarial present value for the 75-year projection period of estimated future expenditures for or on behalf of: (Notes 24 and 25) | |||||
Current participants who, in the starting year of the projection period: | |||||
Have not yet attained eligibility age | |||||
HI | 16,800 | 14,494 | 14,117 | 14,629 | 14,919 |
SMI Part B | 19,178 | 16,818 | 17,003 | 15,075 | 14,303 |
SMI Part D | 7,659 | 6,424 | 5,928 | 5,871 | 5,866 |
Have attained eligibility age (age 65 and over) | |||||
HI | 4,285 | 3,803 | 3,484 | 3,422 | 3,369 |
SMI Part B | 4,026 | 3,637 | 3,171 | 2,887 | 2,646 |
SMI Part D | 952 | 887 | 775 | 722 | 694 |
Those expected to become participants | |||||
HI | 3,437 | 2,791 | 2,764 | 2,913 | 2,891 |
SMI Part B | 4,281 | 3,540 | 4,137 | 3,415 | 3,211 |
SMI Part D | 3,602 | 2,845 | 2,609 | 2,617 | 2,568 |
All current and future participants: | |||||
HI | 24,523 | 21,089 | 20,365 | 20,963 | 21,179 |
SMI Part B | 27,848 | 23,995 | 24,311 | 21,377 | 20,159 |
SMI Part D | 12,213 | 10,156 | 9,312 | 9,211 | 9,128 |
Actuarial present value for the 75-year projection period of estimated future excess of income (excluding interest) over expenditures (Notes 24 and 25) | |||||
HI | (3,822) | (3,187) | (3,823) | (4,772) | (5,581) |
SMI Part B | - | - | - | - | - |
SMI Part D | - | - | - | - | - |
Additional Information | |||||
Actuarial present value for the 75-year projection period of estimated future excess of income (excluding interest) over expenditures (Notes 24 and 25) | |||||
HI | (3,822) | (3,187) | (3,823) | (4,772) | (5,581) |
SMI Part B | - | - | - | - | - |
SMI Part D | - | - | - | - | - |
Trust Fund assets at start of period | |||||
HI | 194 | 197 | 205 | 220 | 244 |
SMI Part B | 68 | 68 | 74 | 66 | 80 |
SMI Part D | 1 | 1 | 1 | 1 | 1 |
Actuarial present value for the 75-year projection period of estimated future excess of income (excluding interest) and Trust Fund assets at start of period over expenditures (Notes 24 and 25) | |||||
HI | (3,628) | (2,990) | (3,618) | (4,551) | (5,337) |
SMI Part B | 68 | 68 | 74 | 66 | 80 |
SMI Part D | 1 | 1 | 1 | 1 | 1 |
Medicare Social Insurance Summary | |||||
Current Participants: | |||||
Actuarial present value for the 75-year projection period from or on behalf of: | |||||
Those who, in the starting year of the projection period, have attained eligibility age: |
|||||
Income (excluding interest) | $5,067 | $4,569 | $3,980 | $3,643 | $3,391 |
Expenditures | 9,263 | 8,328 | 7,430 | 7,031 | 6,709 |
Income less expenditures | (4,196) | (3,759) | (3,450) | (3,388) | (3,319) |
Those who, in the starting year of the projection period, have not yet attained eligibility age: | |||||
Income (excluding interest) | 37,339 | 32,585 | 31,453 | 29,244 | 28,227 |
Expenditures | 43,637 | 37,736 | 37,048 | 35,574 | 35,088 |
Income less expenditures | (6,298) | (5,151) | (5,595) | (6,330) | (6,861) |
Actuarial present value of estimated future income (excluding interest) less expenditures (closed-group measure) |
(10,493) | (8,909) | (9,045) | (9,718) | 10,180) |
Combined Medicare Trust Fund assets at start of period | 263 | 266 | 280 | 288 | 325 |
Actuarial present value of estimated future income (excluding interest) less expenditures plus trust fund assets at start of period | (10,230) | (8,643) | (8,764) | (9,430) | (9,855) |
Future Participants: | |||||
Actuarial present value for the 75-year projection period: | |||||
Income (excluding interest) | 17,992 | 14,898 | 14,732 | 13,891 | 13,268 |
Expenditures | 11,320 | 9,176 | 9,510 | 8,945 | 8,669 |
Income less expenditures | 6,672 | 5,722 | 5,222 | 4,946 | 4,599 |
Open-Group (all current and future participants): | |||||
Actuarial present value of estimated future income (excluding interest) less expenditures |
(3,822) | (3,187) | (3,823) | (4,772) | (5,581) |
Combined Medicare Trust Fund assets at start of period | 263 | 266 | 280 | 288 | 325 |
Actuarial present value of estimated future income (excluding interest) less expenditures plus trust fund assets at start of period |
$(3,559) | $(2,921) | $(3,542) | $(4,484) | $(5,256) |
Please note for the entirety of the Statement of Social Insurance:
Totals do not necessarily equal the sum of the rounded components.
Current participants are assumed to be the “closed group” of individuals who are at least age 15 at the start of the projection period and are participating in the
program as either taxpayers, beneficiaries or both.
The accompanying “Notes to the Principal Financial Statements” are an integral part of these statements.
U.S. Department of Health and Human Services
Statement of Changes in Social Insurance Amounts (unaudited)
January 1, 2015 to January 1, 2016
Medicare Hospital and Supplementary Medical Insurance
in Billions)
Actuarial present value over the next 75 years (open group measure)
|
Combined HI and SMI trust fund account assets
|
Actuarial present value of estimated future income (excluding interest) less expenditures plus combined trust fund assets
|
|||
---|---|---|---|---|---|
Estimated future income (excluding interest)
|
Estimated future expenditures
|
Estimated future income less expenditures
|
|||
Total Medicare (Note 26) | |||||
As of January 1, 2015 | $52,053 | $55,240 | $(3,187) | $266 | $(2,921) |
Reasons for change | |||||
Change in the valuation period | 2,162 | 2,330 | (169) | 2 | (167) |
Change in projection base | 306 | 595 | (289) | (5) | (294) |
Changes in the demographic assumptions | (391) | (573) | 182 | - | 182 |
Changes in economic and health care assumptions | 6,501 | 6,867 | (366) | - | (366) |
Changes in law | (232) | (239) | 6 | - | 6 |
Net changes | 8,345 | 8,980 | (635) | (3) | (638) |
As of January 1, 2016 | 60,398 | 64,220 | (3,822) | 263 | (3,559) |
HI - Part A (Note 26) | |||||
As of January 1, 2015 | 17,902 | 21,089 | (3,187) | 197 | (2,990) |
Reasons for change | |||||
Change in the valuation period | 687 | 855 | (169) | 2 | (167) |
Change in projection base | 63 | 352 | (289) | (6) | (294) |
Changes in the demographic assumptions | 63 | (120) | 182 | - | 182 |
Changes in economic and health care assumptions | 1,987 | 2,353 | (366) | - | (366) |
Changes in law | - | (6) | 6 | - | 6 |
Net changes | 2,799 | 3,434 | (635) | (4) | (638) |
As of January 1, 2016 | 20,701 | 24,523 | (3,822) | 194 | (3,628) |
SMI - Part B (Note 26) | |||||
As of January 1, 2015 | 23,995 | 23,995 | - | 68 | 68 |
Reasons for change | |||||
Change in the valuation period | 990 | 990 | - | - | - |
Change in projection base | (113) | (113) | - | - | - |
Changes in the demographic assumptions | (350) | (350) | - | - | - |
Changes in economic and health care assumptions | 3,183 | 3,183 | - | - | - |
Changes in law | (221) | (221) | - | - | - |
Net changes | 3,489 | 3,489 | - | - | - |
As of January 1, 2016 | 27,484 | 27,484 | - | 68 | 68 |
SMI - Part D (Note 26) | |||||
As of January 1, 2015 | 10,156 | 10,156 | - | 1 | 1 |
Reasons for change | |||||
Change in the valuation period | 485 | 485 | - | - | - |
Change in projection base | 356 | 356 | - | 1 | 1 |
Changes in the demographic assumptions | (103) | (103) | - | - | - |
Changes in economic and health care assumptions | 1,330 | 1,330 | - | - | - |
Changes in law | (11) | (11) | - | - | - |
Net changes | 2,057 | 2,057 | - | - | - |
As of January 1, 2016 | $12,213 | $12,213 | $ - | $1 | $1 |
Totals do not necessarily equal the sum of the rounded components.
The accompanying “Notes to the Principal Financial Statements” are an integral part of these statements.
U.S. Department of Health and Human Services
Statement of Changes in Social Insurance Amounts (unaudited)
January 1, 2014 to January 1, 2015
Medicare Hospital and Supplementary Medical Insurance
in Billions)
Actuarial present value over the next 75 years (open group measure)
|
Combined HI and SMI trust fund account assets
|
Actuarial present value of estimated future income (excluding interest) less expenditures plus combined trust fund assets
|
|||
---|---|---|---|---|---|
Estimated future income (excluding interest)
|
Estimated future expenditures
|
Estimated future income less expenditures
|
|||
Total Medicare (Note 26) | |||||
As of January 1, 2014 | $50,166 | $53,988 | $(3,823) | $280 | $(3,542) |
Reasons for change | |||||
Change in the valuation period | 2,106 | 2,308 | (202) | (17) | (219) |
Change in projection base | 1,174 | 1,256 | (82) | 3 | (79) |
Changes in the demographic assumptions | 149 | 184 | (35) | - | (35) |
Changes in economic and health care assumptions | (1,884) | (2,638) | 755 | - | 755 |
Changes in law | 342 | 142 | 201 | - | 201 |
Net changes | 1,887 | 1,251 | 636 | (14) | 622 |
As of January 1, 2015 | 52,053 | 55,240 | (3,187) | 266 | (2,921) |
HI - Part A (Note 26) | |||||
As of January 1, 2014 | 16,542 | 20,365 | (3,823) | 205 | (3,618) |
Reasons for change | |||||
Change in the valuation period | 610 | 812 | (202) | (14) | (216) |
Change in projection base | (38) | 44 | (82) | 6 | (77) |
Changes in the demographic assumptions | 3 | 38 | (35) | - | (35) |
Changes in economic and health care assumptions | 784 | 30 | 755 | - | 755 |
Changes in law | - | (201) | 201 | - | 201 |
Net changes | 1,360 | 724 | 636 | (8) | 628 |
As of January 1, 2015 | 17,902 | 21,089 | (3,187) | 197 | (2,990) |
SMI - Part B (Note 26) | |||||
As of January 1, 2014 | 24,311 | 24,311 | - | 74 | 74 |
Reasons for change | |||||
Change in the valuation period | 1,054 | 1,054 | - | (3) | (3) |
Change in projection base | 360 | 360 | - | (3) | (3) |
Changes in the demographic assumptions | 82 | 82 | - | - | - |
Changes in economic and health care assumptions | (2,168) | (2,168) | - | - | - |
Changes in law | 356 | 356 | - | - | - |
Net changes | (316) | (316) | - | (6) | (6) |
As of January 1, 2015 | 23,995 | 23,955 | - | 68 | 68 |
SMI - Part D (Note 26) | |||||
As of January 1, 2013 | 9,312 | 9,312 | - | 1 | 1 |
Reasons for change | |||||
Change in the valuation period | 443 | 443 | - | - | - |
Change in projection base | 852 | 852 | - | - | - |
Changes in the demographic assumptions | 63 | 63 | - | - | - |
Changes in economic and health care assumptions | (500) | (500) | - | - | - |
Changes in law | (13) | (13) | - | - | - |
Net changes | 844 | 844 | - | - | - |
As of January 1, 2014 | $10,156 | $10,156 | $- | $1 | $1 |
Totals do not necessarily equal the sum of the rounded components.
The accompanying “Notes to the Principal Financial Statements” are an integral part of these statements.
Also see these sections of the Agency Financial Report:
- Section I: Management, Discussion and Analysis
- Section II: Financial Section - Subsection 2
- Section II: Financial Section - Subsection 3
- Section III: Other Information
- Appendices
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