Interesting Wall Street Journal op-ed today questioning whether there is enough cost containment in the current Congressional health care bills. A legitimate question, to be sure. Wherever you come down on answering this question, however, their prescribed approach will not only not slow the rise in spending, but in some cases could make the problem worse. There are two key facts about rising health care spending worth remembering:
- First, the share of adults considered obese has doubled to 34% since 1987—this doubling of obesity accounts for nearly a third of the rise in health care spending during this period.
- Second, three-quarters of total health care spending is associated with chronically ill patients.
Thus the policy tool kit needed to address these issues is not to hike up cost sharing, but to find proven methods for averting disease in the first place– and to find delivery system and payment reforms that provide more effective chronic care management. Half the battle here to make cost containment effective is to make sure we are solving the right problem!
