FY 2017 HHS Agency Financial Report
Topics In This Section: Report of the Independent Auditors | Department’s Response to the Report of the Independent Auditor | Principal Financial Statements | Notes to the Principal Financial Statements | Required Supplementary Stewardship Information | Required Supplementary Information
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: Jen Moughalian, Acting Assistant Secretary for Financial Resources and Acting Chief Financial Officer
Subject: FY 2017 Financial Statement Audit
We appreciate the opportunity to comment on the Independent Auditors’ Report concerning the audit of our Fiscal Year (FY) 2017 financial statements. We are pleased that the independent auditors determined that HHS’s FY 2017 financial statements and notes were presented fairly, in all material respects, and conform with U.S. generally accepted accounting principles. We generally concur with the auditor’s findings as presented in the Report on Internal Control, and we are eager to develop corrective action plans to correct those deficiencies and strengthen our controls.
Beginning in FY 2015, HHS implemented a comprehensive strategy to strengthen the Department’s financial systems controls environment and address the longstanding IT material weakness. Since then, significant progress has been made in resolving audit findings, reducing risk across the operating environment, and maturing the security and controls posture of HHS’s financial systems. As part of the strategy, HHS established a Management Assessment Framework that defines the conditions and criteria for evaluating the maturity of HHS’s financial systems environment. Evaluation criteria include four key components: (1) Leadership Commitment and Sustained Governance; (2) Reduced Risk through Corrective Actions; (3) Demonstrated Measurable Remediation Progress; and (4) Mature Controls Environment. While control deficiencies still exist across several HHS Federal Information System Controls Audit Manual systems, our evaluation based on the HHS Management Assessment Framework demonstrates that these deficiencies, in aggregate, no longer rise to the level of a “material weakness” under Office of Management and Budget Circular A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, as of September 30, 2017.
We attribute the Department’s progress on addressing our significant deficiencies to a structured corrective action planning process that benefits from effective communication and collaboration with the OpDivs. Corresponding policy, guidance, training, and on-site technical assistance to the OpDivs are key components of the process. Moving forward, the Department and its OpDivs are committed to this collaborative approach to correct existing deficiencies, strengthen our controls, and prevent future deficiencies.
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.
/Jen Moughalian/
Jen Moughalian
Assistant Secretary for Financial Resources and
Acting Chief Financial Officer
November 14, 2017
Principal Financial Statements
U.S. Department of Health and Human Services
Consolidated Balance Sheet
As of September 30, 2017 and 2016
(in Millions)
| Line Item | 2017 | 2016 |
|---|---|---|
| Assets (Note 2) | ||
| Intragovernmental Assets | ||
| Fund Balance with Treasury (Note 3) | $209,753 | $237,759 |
| Investments, Net (Note 4) | 275,524 | 262,077 |
| Accounts Receivable, Net (Note 5) | 968 | 1,012 |
| Other Assets (Note 8) | 233 | 239 |
| Total Intragovernmental Assets | 486,478 | 501,087 |
| Accounts Receivable, Net (Note 5) | 33,081 | 24,203 |
| Inventory and Related Property, Net (Note 6) | 9,698 | 9,399 |
| General Property, Plant and Equipment, Net (Note 7) | 6,248 | 5,665 |
| Advances (Note 8) | 30,859 | 21,480 |
| Other Assets | 459 | 819 |
| Total Assets | 566,823 | 562,653 |
| Stewardship Land (Notes 20) | ||
| Liabilities (Note 9) | ||
| Intragovernmental Liabilities | ||
| Accounts Payable | $239 | $339 |
| Other Liabilities (Note 13) | 9,661 | 7,063 |
| Total Intragovernmental Liabilities | 9.900 | 7,402 |
| Accounts Payable | 1,099 | 981 |
| Entitlement Benefits Due and Payable (Note 10) | 108,347 | 108,230 |
| Accrued Liabilities (Note 12) | 11,872 | 14,420 |
| Federal Employee and Veterans’ Benefits (Note 11) | 13,572 | 12,892 |
| Contingencies and Commitments (Note 14) | 14,797 | 12,394 |
| Other Liabilities (Note 13) | 4,358 | 4,963 |
| Total Liabilities | 163,905 | 161,282 |
| Net Position | ||
| Unexpended Appropriations - Funds from Dedicated Collections (Note 19) | 17,284 | 35,912 |
| Unexpended Appropriations - All Other Funds | 129,688 | 128,129 |
| Cumulative Results of Operations - Funds from Dedicated Collections (Note 19) | 257,676 | 233,470 |
| Cumulative Results of Operations - All Other Funds | (1,730) | 3,860 |
| Total Funds from Dedicated Collections | 274,960 | 269,382 |
| Total All Other Funds | 127,958 | 131,989 |
| Total Net Position | 402,918 | 401,371 |
| Total Liabilities and Net Position | $566,823 | $562,653 |
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, 2017 and 2016
(in Millions)
| 2017 | 2016 | |
|---|---|---|
| Responsibility Segments | ||
| Centers for Medicare & Medicaid Services (CMS) | ||
| Gross Cost | $1,060,793 | $1,004,615 |
| Exchange Revenue | (97,294) | (91,964) |
| CMS Net Cost of Operations | 963,499 | 952,651 |
| Other Segments: | ||
| Administration for Children and Families (ACF) | 51,187 | 51,515 |
| Administration for Community Living (ACL) | 1,948 | 2,058 |
| Agency for Healthcare Research and Quality (AHRQ) | 340 | 348 |
| Centers for Disease Control and Prevention (CDC) | 11,945 | 12,098 |
| Food and Drug Administration (FDA) | 4,860 | 4,617 |
| Health Resources and Services Administration (HRSA) | 10,724 | 10,223 |
| Indian Health Service (IHS) | 6,456 | 6,204 |
| National Institutes of Health (NIH) | 31,376 | 30,790 |
| Office of the Secretary (OS) | 3,278 | 3,176 |
| Program Support Center (PSC) | 2,313 | 2,033 |
| Substance Abuse and Mental Health Services Administration (SAMHSA) | 3,625 | 3,636 |
| Other Segments Gross Cost of Operations before Actuarial Gains and Losses | $128,052 | $126,698 |
| Actuarial (Gains) and Losses Commissioned Corp Retirement and Medical Plan | ||
| Medical Plan (Note 11) | 261 | 483 |
| Other Segments Gross Cost of Operations after Actuarial Gains and Losses | $128,313 | $127,181 |
| Exchange Revenue | (4,963) | (5,060) |
| Other Segments Net Cost of Operations | 123,350 | 122,121 |
| Net Cost of Operations (Note 15) | $1,086,849 | $1,074,772 |
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, 2017
(in Millions)
| 2017 | ||||
|---|---|---|---|---|
| Funds From Dedicated Collections | All Other Funds | Eliminations | Consolidated Total | |
| Cumulative Results of Operations: | ||||
| Beginning Balances | $233,470 | $3,860 | $- | $237,330 |
| Budgetary Financing Sources: | ||||
| Other Adjustments (Rescissions, etc.) (+/-) | (3) | (4) | - | (7) |
| Appropriations Used | 325,452 | 506,888 | - | 832,340 |
| Non-exchange Revenue | ||||
| Non-exchange Revenue - Tax Revenue | 259,740 | - | - | 259,740 |
| Non-exchange Revenue - Investment Revenue | 9,818 | 6 | - | 9,824 |
| Non-exchange Revenue - Other | 4,904 | - | - | 4,904 |
| Donations and Forfeitures of Cash and Cash Equivalents | 70 | - | - | 70 |
| Transfers-in/out without Reimbursement | (4,950) | 3,145 | - | (1,805) |
| Other Financing Sources (Non-Exchange): | ||||
| Donations and Forfeitures of Property | - | (40) | - | (40) |
| Transfers-in/out Without Reimbursement (+/-) | (2) | 2 | - | - |
| Imputed Financing | 37 | 682 | (347) | 372 |
| Other (+/-) | 4 | 63 | - | 67 |
| Total Financing Sources | 595,070 | 510,742 | (347) | 1,105,465 |
| Net Cost of Operations (+/-) | 570,864 | 516,332 | (347) | 1,086,849 |
| Net Change | 24,206 | (5,590) | - | 18,616 |
| Cumulative Results of Operations: | 57,676 | (1,730) | - | 255,946 |
| Unexpended Appropriations: | ||||
| Beginning Balances | 35,912 | 128,129 | - | 164,041 |
| Budgetary Financing Sources: | ||||
| Appropriations Received | 348,468 | 605,538 | - | 954,006 |
| Appropriations Transferred in/out | - | (10) | - | (10) |
| Other Adjustments | (41,644) | (97,081) | - | (138,725) |
| Appropriations Used | (325,452) | (506,888) | - | (832,340) |
| Total Budgetary Financing Sources | (18,628) | 1,559 | - | (17,069) |
| Total Unexpended Appropriations | 17,284 | 129,688 | - | 146,972 |
| Net Position | $274,960 | $127,958 | $- | $402,918 |
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, 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 | - | 3 |
| 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) | 1,074,772 |
| 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
Combined Statement of Budgetary Resources
For the Years Ended September 30, 2017 and 2016
in Millions)
| 2017 | 2016 | |||
|---|---|---|---|---|
| Budgetary | Non-Budgetary Credit Reform Financing Account | Budgetary | Non-Budgetary Credit Reform Financing Account | |
| Budgetary Resources: | ||||
| Unobligated Balance, Brought Forward, Oct 1 | $59,883 | $627 | $65,622 | $2 |
| Recoveries of Prior Year Unpaid Obligations | 51,358 | 3 | 36,333 | - |
| Other Changes in Unobligated Balance | (32,548) | (477) | (16,309) | - |
| Unobligated Balance from Prior Year Budget Authority, Net | 78,693 | 153 | 85,646 | 2 |
| Appropriations (Discretionary and Mandatory) | 1,585,571 | (96) | 1,553,444 | - |
| Borrowing Authority (Discretionary and Mandatory) | 3,720 | 151 | 3,720 | 19 |
| Spending Authority from Offsetting Collections (Discretionary and Mandatory) | 14,238 | 122 | 24,844 | 638 |
| Total Budgetary Resources (Note 23) | 1,682,222 | $330 | 1,667,654 | $659 |
| Status of Budgetary Resources: | ||||
| Obligations Incurred (Notes 18, 22, and 23) | 1,647,010 | $152 | 1,607,771 | 32 |
| Unobligated Balance, End of Year: | ||||
| Apportioned | 15,373 | 3 | 24,982 | 8 |
| Exempt from Apportionment (Note 16) | (12,103) | - | (7,710) | - |
| Unapportioned, Unexpired Accounts | 7,822 | 175 | 5,082 | 619 |
| Unexpired Unobligated Balance, End of Year | 11,092 | 178 | 22,354 | 627 |
| Expired Unobligated Balance, End of Year | 24,120 | - | 37,529 | - |
| Total Unobligated Balance, End of Year | 35,212 | 178 | 59,883 | 627 |
| Total Budgetary Resources (Note 23) | 1,682,222 | $330 | 1,667,654 | $659 |
| Change in Obligated Balance: | ||||
| Unpaid Obligations: | ||||
| Unpaid Obligations, Brought Forward, Oct 1 | $257,598 | $37 | 236,348 | $375 |
| Obligations Incurred (Notes 18 and 23) | 1,647,010 | 152 | 1,607,771 | 32 |
| Outlays (Gross) | (1,599,130) | (181) | (1,550,188) | (370) |
| Recoveries of Prior Year Unpaid Obligations | (51,358) | (3) | (36,333) | - |
| Unpaid Obligations, End of Year | 254,120 | $5 | 257,598 | $37 |
| Uncollected Payments: | ||||
| Uncollected Customer Payments from Federal Sources, Brought Forward, Oct 1 | $(26,466) | $(15) | $(22,124) | $(160) |
| Change in Uncollected Customer Payments from Federal Sources | 7,213 | 12 | (4,342) | 145 |
| Uncollected Payments from Federal Sources, End of Year | $(19,253) | $(3) | $(26,466) | $(15) |
| Memorandum (non-add) Entries: | ||||
| Obligated Balance, Start of Year | $231,132 | $22 | $214,224 | $215 |
| Obligated Balance, End of Year | $234,867 | $2 | $231,132 | $22 |
| Budget Authority and Outlays, Net: | ||||
| Budget Authority, Gross (Discretionary and Mandatory) | $1,603,529 | $177 | $1,582,008 | $657 |
| Actual Offsetting Collections (Discretionary and Mandatory) | (36,481) | (134) | (22,019) | (782) |
| Change in Uncollected Customer Payments from Federal Sources (Discretionary and Mandatory) | 7,213 | 12 | (4,342) | 145 |
| Recoveries of Prior Year Paid Obligations (Discretionary and Mandatory) | 15,521 | - | 513 | - |
| Budget Authority, Net (Discretionary and Mandatory) | $1,589,782 | $55 | $1,556,160 | $20 |
| Outlays, Gross (Discretionary and Mandatory) | $1,599,130 | $181 | $1,550,188 | $370 |
| Actual Offsetting Collections (Discretionary and Mandatory) | (36,481) | (134) | (22,019) | (782) |
| Outlays, Net (Discretionary and Mandatory) | 1,562,649 | 47 | 1,528,169 | (412) |
| Distributed Offsetting Receipts | (446,103) | - | (428,128) | - |
| Agency Outlays, Net (Discretionary and Mandatory) | $1,116,546 | $47 | $1,100,041 | $(412) |
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, 2017 and Prior Base Years
(in Billions)
| Estimates from Prior Years | |||||
|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | |
| 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 | $10,679 | $10,294 | $9,134 | $8,398 | $8,147 |
| SMI Part B | 21,641 | 19,386 | 17,027 | 17,127 | 15,227 |
| SMI Part D | 6,929 | 7,659 | 6,424 | 5,928 | 5,871 |
| Have attained eligibility age (age 65 or over) | |||||
| HI | 492 | 455 | 382 | 332 | 301 |
| SMI Part B | 4,122 | 3,660 | 3,300 | 2,873 | 2,620 |
| SMI Part D | 958 | 952 | 887 | 775 | 722 |
| Those expected to become participants | |||||
| HI | 10,567 | 9,952 | 8,386 | 7,812 | 7,744 |
| SMI Part B | 5,019 | 4,437 | 3,668 | 4,311 | 3,350 |
| SMI Part D | 2,869 | 3,602 | 2,845 | 2,609 | 2,617 |
| All current and future participants | |||||
| HI | 21,738 | 20,701 | 17,902 | 16,542 | 16,192 |
| SMI Part B | 30,783 | 27,484 | 23,995 | 24,311 | 21,377 |
| SMI Part D | 10,756 | 12,213 | 10,156 | 9,312 | 9,211 |
| 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 | $17,193 | $16,800 | $14,494 | $14,117 | $14,629 |
| SMI Part B | 21,392 | 19,178 | 16,818 | 17,003 | 15,075 |
| SMI Part D | 6,929 | 7,659 | 6,424 | 5,928 | 5,871 |
| Have attained eligibility age (age 65 and over) | |||||
| HI | 4,539 | 4,285 | 3,803 | 3,484 | 3,422 |
| SMI Part B | 4,531 | 4,026 | 3,637 | 3,171 | 2,887 |
| SMI Part D | 958 | 952 | 887 | 775 | 722 |
| Those expected to become participants | |||||
| HI | 3,539 | 3,437 | 2,791 | 2,764 | 2,913 |
| SMI Part B | 4,860 | 4,281 | 3,540 | 4,137 | 3,415 |
| SMI Part D | 2,869 | 3,602 | 2,845 | 2,609 | 2,617 |
| All current and future participants: | |||||
| HI | 25,270 | 24,523 | 21,089 | 20,365 | 20,963 |
| SMI Part B | 30,783 | 27,484 | 23,995 | 24,311 | 21,377 |
| SMI Part D | 10,756 | 12,213 | 10,156 | 9,312 | 9,211 |
| Actuarial present value for the 75-year projection period of estimated future excess of income (excluding interest) over expenditures (Notes 24 and 25) | |||||
| HI | $(3,532) | $(3,822) | $(3,187) | $(3,823) | $(4,772) |
| 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 | $(3,532) | $(3,822) | $(3,187) | $(3,823) | $(4,772) |
| SMI Part B | - | - | - | - | - |
| SMI Part D | - | - | - | - | - |
| Trust Fund assets at start of period | |||||
| HI | 199 | 194 | 197 | 205 | 220 |
| SMI Part B | 88 | 68 | 68 | 74 | 66 |
| SMI Part D | 8 | 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 | $(3,333) | $(3,628) | $(2,990) | $(3,618) | $(4,551) |
| SMI Part B | 88 | 68 | 68 | 74 | 66 |
| SMI Part D | 8 | 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) | $5,572 | $5,067 | $4,569 | $3,980 | $3,643 |
| Expenditures | 10,027 | 9,263 | 8,328 | 7,430 | 7,031 |
| Income less expenditures | (4,455) | (4,196) | (3,759) | (3,450) | (3,388) |
| Those who, in the starting year of the projection period, have not yet attained eligibility age: | |||||
| Income (excluding interest) | 39,250 | 37,339 | 32,585 | 29,244 | 28,227 |
| Expenditures | 45,514 | 43,637 | 37,736 | 35,574 | 35,088 |
| Income less expenditures | (6,264) | (6,298) | (5,151) | (5,595) | (6,330) |
| Actuarial present value of estimated future income (excluding interest) less expenditures (closed-group measure) |
(10,719) | (10,493) | (8,909) | (9,045) | (9,718) |
| Combined Medicare Trust Fund assets at start of period | 295 | 263 | 266 | 280 | 288 |
| Actuarial present value of estimated future income (excluding interest) less expenditures plus trust fund assets at start of period | (10,425) | (10,230) | (8,643) | (8,764) | (9,430) |
| Future Participants: | |||||
| Actuarial present value for the 75-year projection period: | |||||
| Income (excluding interest) | 18,456 | 17,992 | 14,898 | 14,732 | 13,891 |
| Expenditures | 11,268 | 11.320 | 9,176 | 9,510 | 8,945 |
| Income less expenditures | 7,187 | 6,672 | 5,722 | 5,222 | 4,946 |
| Open-Group (all current and future participants): | |||||
| Actuarial present value of estimated future income (excluding interest) less expenditures |
(3,532) | (3,822) | (3,187) | (3,823) | (4,772) |
| Combined Medicare Trust Fund assets at start of period | 295 | 263 | 266 | 280 | 288 |
| Actuarial present value of estimated future income (excluding interest) less expenditures plus trust fund assets at start of period |
$(3,237) | $(3,559) | $(2,921) | $(3,542) | $(4,484) |
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, 2016 to January 1, 2017
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, 2016 | $60,398 | $64,220 | $(3,822) | $263 | $(3,559) |
| Reasons for change | |||||
| Change in the valuation period | 2,481 | 2,669 | (187) | 24 | (163) |
| Change in projection base | (136) | (479) | 342 | 8 | 350 |
| Changes in the demographic assumptions | (122) | (20) | (102) | - | (102) |
| Changes in economic and health care assumptions | 617 | 384 | 233 | - | 233 |
| Changes in law | 40 | 36 | 4 | - | 4 |
| Net changes | 2,880 | 2,590 | 290 | 31 | 321 |
| As of January 1, 2016 | $63,277 | $66,809 | $(3,532) | $295 | $(3,237) |
| HI - Part A (Note 26) | |||||
| As of January 1, 2016 | $20,701 | $24,523 | $(3,822) | $194 | $(3,628) |
| Reasons for change | |||||
| Change in the valuation period | 792 | 979 | (187) | 1 | (186) |
| Change in projection base | 133 | (209) | 342 | 4 | 346 |
| Changes in the demographic assumptions | (152) | (50) | (102) | - | (102) |
| Changes in economic and health care assumptions | 265 | 32 | 233 | - | 233 |
| Changes in law | - | (4) | 4 | - | 4 |
| Net changes | 1,037 | 748 | 290 | 5 | 295 |
| As of January 1, 2017 | $21,738 | $25,270 | $(3,532) | $199 | $(3,333) |
| SMI - Part B (Note 26) | |||||
| As of January 1, 2016 | $27,484 | $27,484 | $ - | $68 | $68 |
| Reasons for change | |||||
| Change in the valuation period | 1,115 | 1,115 | - | 17 | 17 |
| Change in projection base | 281 | 281 | - | 3 | 3 |
| Changes in the demographic assumptions | 7 | 7 | - | - | - |
| Changes in economic and health care assumptions | 1,856 | 1,856 | - | - | - |
| Changes in law | 40 | 40 | - | - | - |
| Net changes | 3,299 | 3,299 | - | 20 | 20 |
| As of January 1, 2017 | $30,783 | $30,783 | $ - | $88 | $88 |
| SMI - Part D (Note 26) | |||||
| As of January 1, 2016 | $12,213 | $12,213 | $ - | 1 | 1 |
| Reasons for change | |||||
| Change in the valuation period | 575 | 575 | - | - | - |
| Change in projection base | (550) | (550) | - | 1 | 1 |
| Changes in the demographic assumptions | 22 | 22 | - | - | - |
| Changes in economic and health care assumptions | (1,504) | (1,504) | - | - | - |
| Changes in law | - | - | - | - | - |
| Net changes | (1,457) | (1,457) | - | - | - |
| As of January 1, 2017 | $10,756 | $10,756 | $ - | $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, 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, 2014 | 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, 2015 | $20,701 | $24,523 | $(3,822) | $194 | $(3,628) |
| SMI - Part B (Note 26) | |||||
| As of January 1, 2014 | $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, 2015 | $27,484 | $27,484 | $ - | $68 | $68 |
| SMI - Part D (Note 26) | |||||
| As of January 1, 2013 | $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, 2014 | $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.
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
Return to AFR Homepage
