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	<title>Comments on: Coverage and Cost&#8230;</title>
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	<pubDate>Tue, 06 Jan 2009 23:55:52 +0000</pubDate>
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		<title>By: Sal from Quincy</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-754</link>
		<dc:creator>Sal from Quincy</dc:creator>
		<pubDate>Thu, 05 Jul 2007 17:58:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-754</guid>
		<description>are a nation of excesses:  obesity, alcoholism, smoking, lack of exercise and illegal drug use cost us far more in medical care than we can afford, not to mention risky sexual behavior, gun violence, etc.  These things are all preventable.  I would love to see overeaters, heavy drinkers, smokers and illegal drug users penalized by having to pay more for their health care. And don't get me started on the gun violence perpetrators, you won't be able to print it, but just ask the ER docs what a colossal waste this presents.  Probably impossible to implement, but I'd love to see someone try, because we need accountability as a nation.  You may say Joe Schmoe's binge-drinking or Suzy Somebody's smoking is none of my business, but it most certainly is when it is driving up health care costs for all of us.  Also, people who don't go to the doctor for routine preventive care end up being over-utilizers and this costs all of us.  By the way, Charlie, I appreciate all the wellness programs Harvard Pilgrim offers and the other ways you try to incentivize your members toward good health habits.  But the burden shouldn't be on you, it should be on the consumer to change. Every time I get into a discussion about health care costs with consumers, they inevitably blame the health plans, hospitals and doctors. This is too easy.  Patients need to take more responsibility for their choices and how they impact the cost of health care.  We need to do what we can to promote transparency, ask for prices, etc.  But we also need to take much more responsibility for our lifestyle choices and how they impact the cost of health care.  We</description>
		<content:encoded><![CDATA[<p>are a nation of excesses:  obesity, alcoholism, smoking, lack of exercise and illegal drug use cost us far more in medical care than we can afford, not to mention risky sexual behavior, gun violence, etc.  These things are all preventable.  I would love to see overeaters, heavy drinkers, smokers and illegal drug users penalized by having to pay more for their health care. And don&#8217;t get me started on the gun violence perpetrators, you won&#8217;t be able to print it, but just ask the ER docs what a colossal waste this presents.  Probably impossible to implement, but I&#8217;d love to see someone try, because we need accountability as a nation.  You may say Joe Schmoe&#8217;s binge-drinking or Suzy Somebody&#8217;s smoking is none of my business, but it most certainly is when it is driving up health care costs for all of us.  Also, people who don&#8217;t go to the doctor for routine preventive care end up being over-utilizers and this costs all of us.  By the way, Charlie, I appreciate all the wellness programs Harvard Pilgrim offers and the other ways you try to incentivize your members toward good health habits.  But the burden shouldn&#8217;t be on you, it should be on the consumer to change. Every time I get into a discussion about health care costs with consumers, they inevitably blame the health plans, hospitals and doctors. This is too easy.  Patients need to take more responsibility for their choices and how they impact the cost of health care.  We need to do what we can to promote transparency, ask for prices, etc.  But we also need to take much more responsibility for our lifestyle choices and how they impact the cost of health care.  We</p>
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		<title>By: lori</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-620</link>
		<dc:creator>lori</dc:creator>
		<pubDate>Tue, 26 Jun 2007 17:42:37 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-620</guid>
		<description>I spend about $5000.00 a year for me and my son on my percentage (employer pays 60%) on health care. We go to the doctors once a year. ($160.00 each) I wish i made that kind of profit each year. Im a single mom and can barely keep my head above water. And yes i do have cable. i dont think it fair for people like us who do not run to the doctor everytime we sneeze to have to pay so much. In the last ten years weve had one trip to the hospital. i realize i have been lucky but i still think the costs are way to high and salaries are not going up with the health care increases. I think it should be regulated to match salaries but also have a cap.</description>
		<content:encoded><![CDATA[<p>I spend about $5000.00 a year for me and my son on my percentage (employer pays 60%) on health care. We go to the doctors once a year. ($160.00 each) I wish i made that kind of profit each year. Im a single mom and can barely keep my head above water. And yes i do have cable. i dont think it fair for people like us who do not run to the doctor everytime we sneeze to have to pay so much. In the last ten years weve had one trip to the hospital. i realize i have been lucky but i still think the costs are way to high and salaries are not going up with the health care increases. I think it should be regulated to match salaries but also have a cap.</p>
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		<title>By: Charlie Baker</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-555</link>
		<dc:creator>Charlie Baker</dc:creator>
		<pubDate>Mon, 18 Jun 2007 15:21:05 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-555</guid>
		<description>Isn't there a cultural/education issue here as well?  If we train clinicians to believe that every circumstance is different, and that systemic approaches to care and care delivery can/will translate into "cookbook medicine," should we be surprised by the degree of variation we find in treatment patterns today?

I'm a big believer in spending more money on the study and understanding of health care delivery in part to inform and improve the way we pay for care, but it might also reform the way we educate the next generation of care practitioners.  Some variation I get, but what we find in health care today is beyond the bounds of reasonable explanation.  It also represents a ton of money - and is, in large part - the answer to Paul's previous commentary.

More on this issue in my next post - which will be about the role and mentality of Medicare.</description>
		<content:encoded><![CDATA[<p>Isn&#8217;t there a cultural/education issue here as well?  If we train clinicians to believe that every circumstance is different, and that systemic approaches to care and care delivery can/will translate into &#8220;cookbook medicine,&#8221; should we be surprised by the degree of variation we find in treatment patterns today?</p>
<p>I&#8217;m a big believer in spending more money on the study and understanding of health care delivery in part to inform and improve the way we pay for care, but it might also reform the way we educate the next generation of care practitioners.  Some variation I get, but what we find in health care today is beyond the bounds of reasonable explanation.  It also represents a ton of money - and is, in large part - the answer to Paul&#8217;s previous commentary.</p>
<p>More on this issue in my next post - which will be about the role and mentality of Medicare.</p>
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		<title>By: Paul Levy</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-522</link>
		<dc:creator>Paul Levy</dc:creator>
		<pubDate>Fri, 15 Jun 2007 20:00:24 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-522</guid>
		<description>Hi Ian,

I agree it would be easier if it were invisible in that way, i.e, already done at the time of delivery.  But, so far, efforts to change practice decisions by doctors have not worked very well if imposed from the outside.

On the prescription drug marketing, let it be so!  I am stunned by how much consumer demand for drugs is driven by those ads on television.  They put local primary care doctors and others in a very awkward position.</description>
		<content:encoded><![CDATA[<p>Hi Ian,</p>
<p>I agree it would be easier if it were invisible in that way, i.e, already done at the time of delivery.  But, so far, efforts to change practice decisions by doctors have not worked very well if imposed from the outside.</p>
<p>On the prescription drug marketing, let it be so!  I am stunned by how much consumer demand for drugs is driven by those ads on television.  They put local primary care doctors and others in a very awkward position.</p>
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		<title>By: Ian M</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-520</link>
		<dc:creator>Ian M</dc:creator>
		<pubDate>Fri, 15 Jun 2007 16:28:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-520</guid>
		<description>Paul, I think that people will accept changes to the delivery system if they are put in place outside the realm of consumerism. More directly, if clinicians and other healthcare professionals are guided to streamline care with an eye on cost BEFORE it reaches the patient level, then the changes could be applied without much backlash. It is a case of setting expectations. I don't believe that this would be the sea change you are making it out to be. Again I'll point to the legislation being mulled by Congress to limit the marketing of prescription medications. If treatment decisions are solely in the hands of the provider, there is less chance of the more costly, more effectively marketed treatments diluting the market. 
Maybe I'm too optimistic, but I do think that costs can be dramatically reduced without sacrificing the ability to offer optimal treatment to everyone. I agree with your point that a move needs to be made in the direction of prevention, life style changes etc, but I would contend that those changes would be more likely to occur at that "slow speed."</description>
		<content:encoded><![CDATA[<p>Paul, I think that people will accept changes to the delivery system if they are put in place outside the realm of consumerism. More directly, if clinicians and other healthcare professionals are guided to streamline care with an eye on cost BEFORE it reaches the patient level, then the changes could be applied without much backlash. It is a case of setting expectations. I don&#8217;t believe that this would be the sea change you are making it out to be. Again I&#8217;ll point to the legislation being mulled by Congress to limit the marketing of prescription medications. If treatment decisions are solely in the hands of the provider, there is less chance of the more costly, more effectively marketed treatments diluting the market.<br />
Maybe I&#8217;m too optimistic, but I do think that costs can be dramatically reduced without sacrificing the ability to offer optimal treatment to everyone. I agree with your point that a move needs to be made in the direction of prevention, life style changes etc, but I would contend that those changes would be more likely to occur at that &#8220;slow speed.&#8221;</p>
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		<title>By: Paul Levy</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-508</link>
		<dc:creator>Paul Levy</dc:creator>
		<pubDate>Fri, 15 Jun 2007 11:34:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-508</guid>
		<description>In an earlier post, Charlie pointed out that his costs were rising, in great measure, because of increased utlization of health services and, in particular, greater utilization of high acuity services.  I think we all agreed that this is a result of demographics as much as anything, an elderly population that is living longer and a baby boomer population that is becoming elderly.  (And ironically, people are living longer and using more medical services because we have taken many diseases from the terminal category and placed them in the chronic category.  For example, people don't die from heart disease as soon and therefore live long enough to get cancer.)

I understand the need for providers to enhance quality of care and take other measures that combined will achieve operational efficiencies -- and, in fact we are building our BIDMC business plan around that -- but I don't see much evidence that many places are doing this. Further, even if they do come around to this philosophy, will these changes offset the underlying demographic forces throughout the region or country?

Put another way, does anyone out there think that we can dramatically slow the growth of health care expenditures in a society that demands that all services and treatments be available to all?  I have heard Charlie talk persuasively about the slow speed with which changes in direction occur in this field.  This is not a question of design of insurance products or systems.  I don't see that this country will quickly adopt underlying changes in medical treatment philosophy -- so whether the insurance system stays the same or moves to a more national health system approach -- there will be a cost squeeze on somebody.  It might be taxpayers, employers, employees, or providers, but most likely a combination of all.

In short, it seems to me that we have all decided that more medical care is better.  We have greater and greater expectations for treatment of acute and chronic disease.  We persist in ignoring investment in the parts of the health care system that would emphasize prevention, life style changes, and early intervention.  Is there really any doubt as to why the current trends exist?</description>
		<content:encoded><![CDATA[<p>In an earlier post, Charlie pointed out that his costs were rising, in great measure, because of increased utlization of health services and, in particular, greater utilization of high acuity services.  I think we all agreed that this is a result of demographics as much as anything, an elderly population that is living longer and a baby boomer population that is becoming elderly.  (And ironically, people are living longer and using more medical services because we have taken many diseases from the terminal category and placed them in the chronic category.  For example, people don&#8217;t die from heart disease as soon and therefore live long enough to get cancer.)</p>
<p>I understand the need for providers to enhance quality of care and take other measures that combined will achieve operational efficiencies &#8212; and, in fact we are building our BIDMC business plan around that &#8212; but I don&#8217;t see much evidence that many places are doing this. Further, even if they do come around to this philosophy, will these changes offset the underlying demographic forces throughout the region or country?</p>
<p>Put another way, does anyone out there think that we can dramatically slow the growth of health care expenditures in a society that demands that all services and treatments be available to all?  I have heard Charlie talk persuasively about the slow speed with which changes in direction occur in this field.  This is not a question of design of insurance products or systems.  I don&#8217;t see that this country will quickly adopt underlying changes in medical treatment philosophy &#8212; so whether the insurance system stays the same or moves to a more national health system approach &#8212; there will be a cost squeeze on somebody.  It might be taxpayers, employers, employees, or providers, but most likely a combination of all.</p>
<p>In short, it seems to me that we have all decided that more medical care is better.  We have greater and greater expectations for treatment of acute and chronic disease.  We persist in ignoring investment in the parts of the health care system that would emphasize prevention, life style changes, and early intervention.  Is there really any doubt as to why the current trends exist?</p>
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		<title>By: Charlie Baker</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-501</link>
		<dc:creator>Charlie Baker</dc:creator>
		<pubDate>Thu, 14 Jun 2007 18:20:37 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-501</guid>
		<description>Affordability is often, but not always, in the eye of the beholder.  MIT economist John Gruber - who sits on the MA Connector Authority Board, by the way, has shown that people with relatively low incomes will choose to take health insurance, even if there's a significant premium contribution required, if it's offered to them through their employer.  Now, whether or not it requires hard choices on other things they might choose to spend money on is a debateable question, but the data about who does choose coverage when it's offered - even if it's relatively expensive for them to do so - is pretty persuasive.

Some of this, I believe, is about ease of administration.  If you take coverage through work, even if it's expensive, it's not a lot of administrative hassle for you.  The larger question being posed by the Connector is what happens when a state entity tries to make the administrative part of the transaction less complex.  Will people buy it?

We'll have to wait and see.</description>
		<content:encoded><![CDATA[<p>Affordability is often, but not always, in the eye of the beholder.  MIT economist John Gruber - who sits on the MA Connector Authority Board, by the way, has shown that people with relatively low incomes will choose to take health insurance, even if there&#8217;s a significant premium contribution required, if it&#8217;s offered to them through their employer.  Now, whether or not it requires hard choices on other things they might choose to spend money on is a debateable question, but the data about who does choose coverage when it&#8217;s offered - even if it&#8217;s relatively expensive for them to do so - is pretty persuasive.</p>
<p>Some of this, I believe, is about ease of administration.  If you take coverage through work, even if it&#8217;s expensive, it&#8217;s not a lot of administrative hassle for you.  The larger question being posed by the Connector is what happens when a state entity tries to make the administrative part of the transaction less complex.  Will people buy it?</p>
<p>We&#8217;ll have to wait and see.</p>
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		<title>By: Ian M</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-499</link>
		<dc:creator>Ian M</dc:creator>
		<pubDate>Thu, 14 Jun 2007 16:19:43 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-499</guid>
		<description>I agree with the fundamental assessment that the success of ay universal coverage plan does hinge on cost control, and would be doomed if the current trends continue. Hillary Clinton recently touched upon an important piece of this in saying ""Unless the vast majority of Americans who have health care coverage . . . believe that there's some benefit to them, as opposed to just covering those who have no insurance, the political support is not sustainable...We thought we were doing that back in '93 and '94, but the message was much more focused on covering the people who were not insured...all of the other special interests began attacking the plan, there wasn't a reservoir of political support from people who said, 'Wait a minute, this is actually going to help get my premiums down.' " 
This just emphasizes that even politically speaking, the cost issue must be addressed in order for any sort of universal healthcare plan to prove successful in the long run.

Barry, I totally agree with your idea of modeling the delivery method of an Institute for Healthcare Delivery after the Federal Reserve Board. I do think, though, there is potential for controversy when comparing 'Drug A' to 'Drug B' on an effectiveness level. Even more so than in the case of other medical treatments, there is much more variation between patients as far as their responses to certain medications. What may be very effective at treating my condition could well have little to no effect on your identical condition. I do support the idea of legislation restricting the marketing of medications, as is currently being mulled over by the US House of Representatives. 
As for your last point, I think you are totally correct. End of life healthcare and other similar scenarios are ethically challenging to begin with. If the government were to regulate these procedures, we could potentially enter a realm where the government would impede upon some very basic constitutional rights that they are bound to serve and protect.</description>
		<content:encoded><![CDATA[<p>I agree with the fundamental assessment that the success of ay universal coverage plan does hinge on cost control, and would be doomed if the current trends continue. Hillary Clinton recently touched upon an important piece of this in saying &#8220;&#8221;Unless the vast majority of Americans who have health care coverage . . . believe that there&#8217;s some benefit to them, as opposed to just covering those who have no insurance, the political support is not sustainable&#8230;We thought we were doing that back in &#8216;93 and &#8216;94, but the message was much more focused on covering the people who were not insured&#8230;all of the other special interests began attacking the plan, there wasn&#8217;t a reservoir of political support from people who said, &#8216;Wait a minute, this is actually going to help get my premiums down.&#8217; &#8221;<br />
This just emphasizes that even politically speaking, the cost issue must be addressed in order for any sort of universal healthcare plan to prove successful in the long run.</p>
<p>Barry, I totally agree with your idea of modeling the delivery method of an Institute for Healthcare Delivery after the Federal Reserve Board. I do think, though, there is potential for controversy when comparing &#8216;Drug A&#8217; to &#8216;Drug B&#8217; on an effectiveness level. Even more so than in the case of other medical treatments, there is much more variation between patients as far as their responses to certain medications. What may be very effective at treating my condition could well have little to no effect on your identical condition. I do support the idea of legislation restricting the marketing of medications, as is currently being mulled over by the US House of Representatives.<br />
As for your last point, I think you are totally correct. End of life healthcare and other similar scenarios are ethically challenging to begin with. If the government were to regulate these procedures, we could potentially enter a realm where the government would impede upon some very basic constitutional rights that they are bound to serve and protect.</p>
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		<title>By: sg</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-492</link>
		<dc:creator>sg</dc:creator>
		<pubDate>Wed, 13 Jun 2007 20:57:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-492</guid>
		<description>Charlie - Another issue that really hasn't been raised in this whole coverage debate is the role of "personal responsibility" for individuals to have health insurance coverage. I think there are people who have realized they don't need insurance in Massachusetts as they can show up at any hospital and they will be treated....  the new MA law seems to be enrolling people who are largely paying nothing for their coverage and the law has not been very effective enrolling people who actually have to pay part or all of the premium cost. The point being, how many of these people without coverage have cell phones, cable TV or smoke a pack of cigarettes a day while claiming they can't afford health coverage? The Connector is advertising with the Red Sox which implies these people can afford to go to the Red Sox games or they all are paying for NESN on cable TV... I would think people would make sure they have health coverage before spending for other much less important things in their life. Given the uninsured can now buy plans for around $200 per month, I would be curious as to how many people say they can't afford this while spending well over that amount on other things that are largely luxury items.</description>
		<content:encoded><![CDATA[<p>Charlie - Another issue that really hasn&#8217;t been raised in this whole coverage debate is the role of &#8220;personal responsibility&#8221; for individuals to have health insurance coverage. I think there are people who have realized they don&#8217;t need insurance in Massachusetts as they can show up at any hospital and they will be treated&#8230;.  the new MA law seems to be enrolling people who are largely paying nothing for their coverage and the law has not been very effective enrolling people who actually have to pay part or all of the premium cost. The point being, how many of these people without coverage have cell phones, cable TV or smoke a pack of cigarettes a day while claiming they can&#8217;t afford health coverage? The Connector is advertising with the Red Sox which implies these people can afford to go to the Red Sox games or they all are paying for NESN on cable TV&#8230; I would think people would make sure they have health coverage before spending for other much less important things in their life. Given the uninsured can now buy plans for around $200 per month, I would be curious as to how many people say they can&#8217;t afford this while spending well over that amount on other things that are largely luxury items.</p>
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		<title>By: Barry Carol (formerly BC)</title>
		<link>http://www.letstalkhealthcare.org/health-care-costs/coverage-and-cost/#comment-481</link>
		<dc:creator>Barry Carol (formerly BC)</dc:creator>
		<pubDate>Wed, 13 Jun 2007 01:21:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.letstalkhealthcare.org/?p=101#comment-481</guid>
		<description>I think the Institute for Healthcare Delivery is a fine idea.  I think it should be structured like the Federal Reserve Board to maximize its independence.  Clinicians would do the research and would be the equivalent of the staff economists at the Fed.

The least controversial mission for such a group would be to assess the comparative effectiveness of similar drugs and treatments.  Determining that Drug A is just as effective as Drug B and is half the price or less does not deny care to anyone; it just helps to identify the best value.

As I've said numerous times before, we need to find ways to safely reduce utilization of services which is much trickier.  I would like to see universal living wills or advance directives to minimize futile and often unwanted care at or near the end of life.  Sensible malpractice reform could, over time, reduce defensive medicine.

While I'm a big fan in price transparency, I think we might be better served if doctors became the focus for taking advantage of it.  Doctors drive virtually all healthcare spending through hospital admissions, ordering tests, prescribing drugs, referring patients to specialists, consulting with patients and doing procedures themselves.  If the doctors had robust price transparency information at their disposal in an easily accessible format, they could more easily direct their patients to the most cost effective providers.  At the same time, if insurers could track utilization by doctor and adjust it for the risk of each doctor's patient population, insurers could more clearly identify the best practicers and the high utilizers.  Perhaps it could then design a system to reward the best practicers either with meaningful bonuses and/or higher reimbursement rates and, at the same time, help the high utilizers improve their practice pattern.

By far, the most controversial potential strategy would be rationing by denying care based on QALY metrics or arbitrary age cutoffs.  We would need to carefully study how other countries handle this and then, through our elected representatives, determine to what extent, if any, our society and culture is prepared to move in that direction.  At the very least, we would need to demonstrate that we have aggressively pursued and fully exploited all other reasonable cost reduction strategies first and should only resort to explicit rationing as a last resort.</description>
		<content:encoded><![CDATA[<p>I think the Institute for Healthcare Delivery is a fine idea.  I think it should be structured like the Federal Reserve Board to maximize its independence.  Clinicians would do the research and would be the equivalent of the staff economists at the Fed.</p>
<p>The least controversial mission for such a group would be to assess the comparative effectiveness of similar drugs and treatments.  Determining that Drug A is just as effective as Drug B and is half the price or less does not deny care to anyone; it just helps to identify the best value.</p>
<p>As I&#8217;ve said numerous times before, we need to find ways to safely reduce utilization of services which is much trickier.  I would like to see universal living wills or advance directives to minimize futile and often unwanted care at or near the end of life.  Sensible malpractice reform could, over time, reduce defensive medicine.</p>
<p>While I&#8217;m a big fan in price transparency, I think we might be better served if doctors became the focus for taking advantage of it.  Doctors drive virtually all healthcare spending through hospital admissions, ordering tests, prescribing drugs, referring patients to specialists, consulting with patients and doing procedures themselves.  If the doctors had robust price transparency information at their disposal in an easily accessible format, they could more easily direct their patients to the most cost effective providers.  At the same time, if insurers could track utilization by doctor and adjust it for the risk of each doctor&#8217;s patient population, insurers could more clearly identify the best practicers and the high utilizers.  Perhaps it could then design a system to reward the best practicers either with meaningful bonuses and/or higher reimbursement rates and, at the same time, help the high utilizers improve their practice pattern.</p>
<p>By far, the most controversial potential strategy would be rationing by denying care based on QALY metrics or arbitrary age cutoffs.  We would need to carefully study how other countries handle this and then, through our elected representatives, determine to what extent, if any, our society and culture is prepared to move in that direction.  At the very least, we would need to demonstrate that we have aggressively pursued and fully exploited all other reasonable cost reduction strategies first and should only resort to explicit rationing as a last resort.</p>
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