As the Senate and House consider what to include in a final health reform package, now is a good time to revisit the issue of how current proposals address the high and growing cost of health care.
I had the opportunity to comment on this issue twice in the past week:
In a Denver Post piece Michael Riley explores the degree to which Congress has stuck to one of health reform’s basic goals: “instituting widely agreed upon ideas that would curb runaway inflation in the cost of delivering care.” To put it nicely, my belief is that while the current provisions in bills are a good start, many of these reforms can stand to be strengthened in the existing legislation.
It’s worth reviewing a few key facts to remind us of where our priorities should lie as we craft a final bill:
We can only truly hope to expand access and affordability, and improve the quality of health care, in the U.S. if it can be financially sustained – and that means tackling what’s driving cost: high and rising rates of chronic disease.
The healthier our population becomes the fewer instances of chronic disease and the more money we save. A phrase the PFCD often uses: if we were healthier, we’d be wealthier. This slogan is not only catchy, but true. Nine chronic ailments account for nearly 60% of the recent rise in Medicare spending. One third of the growth in health care spending is due to the doubling of obesity rates since 1990 and three-fourths of health care spending in the U.S. is linked to treating those with chronic illnesses.
Fortunately, delivery system reforms are also cost-saving – and life-saving and –sustaining – measures.
There are many evidence-based delivery system reforms, including the community health teams (CHTs) referenced by Riley that would greatly improve the quality of care available and access to that care. To put it nicely, many of these reforms can stand to be strengthened in the existing legislation.
If we could reduce rates of preventable chronic diseases, and help the chronically ill stay healthier and out of the hospital, we could lower health care costs and get a better value for each dollar spent.
CHTs are good examples of how we can make smart, cost-effective investments that improve the quality of care: by investing $30 billion over 10 years in a CHT infrastructure, we could save $100 billion over 10 years due to reductions in hospital readmissions and improving existing care management protocols.
On a related note, in an interview with Fox Business’s Dagen McDowell, I had the chance to talk about Congressional proposals to allow employers to do more to encourage “good” health behaviors among employees (and conversely, penalize employees for “bad” behaviors) as a means of reigning in rising health care premiums.
As I noted during the interview, there are many ways to incentivize workers to change behaviors that have been proven to save the system money – and “carrots” work better than “sticks”.
A growing body of evidence demonstrates that economic incentives can prompt workers to make healthier choices.
However, we must remember that financial incentives are just a piece of the puzzle in helping people live healthier lifestyles. These initiatives work best in combination with other programs that get the workforce heavily engaged such as diet/lifestyle programs and medication management.
The overall design of health and wellness programs is a key to their success. Those that work the best share several key features:
By-in from leadership.
Use carrots – not sticks. Positive financial incentives work.
They are voluntary, have a well-designed and communicated structure, and are easy to access.
As Senate leadership works to meld the Finance and HELP bills into one, I hope they remember our catchy phrase– if we were healthier, we’d be wealthier—and vote in favor of cost-saving delivery system reforms so that we make a wise investment in our nation’s health.