Health Care Proposals Outlined In Report Might Reduce Spending, Improve Quality, Editorial States

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Article Date: 21 Dec 2007 - 12:00 PDT

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The health care proposals examined in a report released this week by the Commonwealth Fund would account for only a "modest 4.5% reduction" in health spending over the next decade and "will be hard to achieve," but "there is no choice but to try" and many of the proposals "might actually improve the quality of care delivered to Americans," a New York Times editorial states (New York Times, 12/20).

According to the report, which examines 15 proposals, the U.S. could reduce health care spending over 10 years by $1.5 trillion, in part through accelerated adoption of health care information technology and the implementation of a system that pays physicians based on the quality and outcome, rather than the number, of tests and procedures they perform (Kaiser Daily Health Policy Report, 12/18).

According to the editorial, the physician payment system proposal, which the report estimates could reduce health care spending by $368 billion over 10 years, "is a superb idea and could produce big savings over time, although we are skeptical that the initial payback would be that high." The editorial adds, "A few options that make good sense are sure to excite strong lobbying opposition," such as proposals to "eliminate the unjustified subsidies granted" to private Medicare Advantage plans and "allow the government to negotiate lower prescription drug prices for Medicare."

However, the report "failed to assess one controversial proposal -- a Medicare-like insurance program to replace private insurance -- that, by some estimates, could produce even bigger savings." Still, the Commonwealth Fund has "performed a public service by putting dollar estimates on the rather abstract proposals being discussed by many of the presidential candidates," the editorial states, adding, "If the United States hopes to bring health care costs under control, it will need to start on these or other options as soon as possible" (New York Times, 12/20).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.