The following is copied from progressivestates.org: Wringing Costs Out of the Health Care System
We spend more than twice on health care than any other industrialized nation in the world, yet we don't have universal access and our outcomes are worse. The reason we don't have universal access to quality health care is that too much of our health care spending -- our premiums, co-pays, prescriptions -- is wasted on profits, CEO bonuses and inefficient health care.According to a recent Commonwealth Fund report, 16 percent of the US GDP is spent on health care, compared with 8 to 10 percent in most major industrial nations. Unless something is done to moderate costs, total spending will double to over $4 trillion, or 20 percent of GDP, by 2015. Some states are already seeing these high levels of spending. Conversely, serious cost controls can help contribute to the money needed to extend health care to all our citizens.
In the absence of any meaningful federal action, states are once again leading the way. This Dispatch will discuss how states are improving quality of health care, forcing efficiency upon insurance companies, targeting prescription drug and hospital spending, and transforming the health care system from one that primarily treats illness to one that helps people stay healthy -- all efforts to reduce health care costs and spending without sacrificing access to quality care.
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