Among the reasons behind the nation’s seemingly inexorable rise in medical spending are the practice of rewarding doctors and hospitals for volume rather than efficiency of care and the tax break given to consumers for their job-based health insurance, according to a report out Thursday from the Bipartisan Policy Center, a think tank in Washington.
The report highlighted more than a dozen issues which are helping to drive up the U.S. health care bill. None will surprise policy wonks: expensive new technology, an aging population beset by chronic illness and high prices for medical services. Still, the policy center hopes to educate the public and Congress, which next year might consider legislation dealing with the issues, including the tax exemption for employer-provided health insurance, estimated to be the nation’s single largest tax break.
The center did not rank the cost drivers in terms of which are the biggest problems, except to say that the aging population adds half a percentage point of cost annually to overall medical spending. So, medical malpractice – frequently cited by politicians and the public when asked what is driving up medical costs – is in the report right alongside high prices charged by medical providers and new technology, which are far bigger drivers.
Thursday’s report is the first from the center’s cost containment initiative, which is led by former Senate Majority Leaders Tom Daschle (D-S.D.) and Bill Frist (R-Tenn.), former Sen. Pete Domenici (R-N.M.) and former Congressional Budget Office Director Alice Rivlin. The center says its next report, due out early next year, will include specific strategies for dealing with each of the issues.
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Bipartisan Report Focuses On Issues Driving Up Health Care Costs? What keeping costs high? That’s easy! The private insurance companies and the Republicans like Romney and Ryan that want to keep them in total control.
One word! Expectations.
Go to Ireland , where they have slashed costs and you will see very low expectations of healthcare. The problem in America is that we are trying to cut costs but Washington keeps telling the public that the “quality ” will be better! There are absolutely no limitations on care for pts at the end of life and of course they can complain to various agencies or file lawsuits if things are not perfect. IMO we will not be able to control costs until the expectations change and this will include sweeping tort reform as well. They just cant cut costs across the board any more and keep hospitals and providers from going out of business unless expectations change
How many Dr’s do you see driving BMW and Mercedes, do you think they got into the industry to save lives and improve quality of life or just improve their OWN quality of life? If you want to cut healthcare costs, you must make the industry non-profit.
Everyone remembers the highly paid specialist with the BMW at the Country Club but they forget about to 60% of docs who are grossly underpaid under Medicare and Medicaid. If it were not for African and Indian docs, we wouldnt have nearly enough docs and hospitals would be closing! If Medicine is such an easy and highly paid proffession then why dont good, smart American young people want to go to Med School? I am a physician of 20yrs and dont have an expensive car. None of my 3 children are even thinking about med school and that IMO is sad!
Profits. Amazingly, nowhere do I see a mention of the profits garnered by every organization related to healthcare. Sure, some doctors make enough to drive nice cars. But so do the reps and executives for the pharmaceutical companies, prosthetic and device manufacturers, insurance companies, and all of the stockholders in those companies. A corporation’s core responsibility is to its stockholder, after all. I don’t begrudge a fair profit for a good product, but almost all of these costs are concealed from the patient and from the doctor, unless a cozy arrangement can be made. Every vendor who comes to our office is quick to point out how this ultrasound machine, that visco-supplementation injection, or another Dupuytren’s treatment can bring in revenue to the practice.
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First you should know I am a physician, but that I am in favor of medical reform. The current system is not sustainable. I believe that all parts of medicine need to make drastic adjustments. The insurance industry needs major changes to become more transparent in the way money is spent on direct patient care and should not be restricted in any way across state lines. Hospitals and systems need a massive reduction in middle manangement that does not directly impact patient care. Doctors need to have fewer restrictions to improve health care delivery (i.e. anti-trust laws, Stark legislation, insurance negotiations). As with most problems, fixing one area will not solve the problem.
and why weren’t the highest cost drivers ranked— that would have been very intefesting to know