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Mar
19
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Root causes of high costs

In 2012, federal, state, and local governments spent over $1.3 trillion on health care, 47% of total NHE. The Medicare and Medicaid programs accounted for $1 trillion of this. Inefficiencies most often cited include:
• Flawed payment systems (e.g., FFS, rate-setting processes that overpay for specialists and procedures)
• Poor insurance practices driven by political considerations (overly generous benefit plans, limitations on plan designs that raise cost, etc.)
• Inept administration (e.g., the prevalence of Medicare fraud, last fall’s well-publicized problems with www.healthcare.gov and this spring’s VA crisis)

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IAHC
    Root causes of high costs (14)
    Redesign of clinical processes (2)
    Cost-saving technologies (2)
    Organizational changes (1)
    Strategic repositioning (1)
    Changes in health care work force (1)
    Robust financial systems (1)
    World-class business processes (1)
    Consumer engagement (1)
    Realigned incentives (1)
    Government's role (2)
    Others (3)

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