Lowering Healthcare Costs: Bending the Cost Curve
through Competition, Quality, and Consumerism
What are the best solutions to not just slow healthcare
costs, but to actually bring them down?
As a nation, we spend a staggering amount of money on healthcare. Just to put the size and scope of our healthcare system in context, think of it this way: according to CMS, last year we spent $2.3 trillion— more than 16 percent of our entire economy— on healthcare.
This is almost the entire gross domestic product of France and Britain. What we spend on healthcare is larger than the gross domestic product of more than 170 nations.
And healthcare costs continue to rise. According to the Centers for Medicare and Medicaid Services, 2008 was a good year, when healthcare costs rose “only” 4.4 percent. CMS projects that by 2019, total healthcare spending will double to $4.5 trillion a year and consume nearly 20 percent of our GDP. As a country, we cannot sustain our current path.
So how do we reverse this? What can we actually do to “bend the curve”? From insurance competition to consumerism to price and quality transparency to many other solutions, what do you think will work?