America spent around $3.5 trillion on health care in 2017, totaling 17.9 % of the country’s GDP. Health spending accounts for a couple of of-quarter of all federal spending and is anticipated to double over the following decade. Without policies in place to regulate the expansion of health care spending, there’s a risk that a large amount of the economy’s future development shall be absorbed by excessively expensive health systems, without considerable gains in precise health.
Joseph Antos, a senior fellow at AEI, and the late Alice M. Rivlin provide a new thought for health reformation that builds on the present health care system. Their approach arms purchasers, together with consumers, physicians, insurers, employers, and the government to make cost-effective decisions in a competitive market environment. Antos and Rivlin stress the significance of competitive pressures on health care prices from both the supply and demand sides.
Enhancing information about costs and outcomes to push cost-reducing stress from patients and assist consumers, providers, and insurers make less expensive choices.
Essential elements of this reform include,
Shifting away from fee-for-service payment where possible, holding organized provider teams liable for the cost and quality of the treatment provided to patients.
Removing obstacles to competitors among insurers and health care providers, using the ability of competitive markets to drive towards cost-effective health care supply.
Applying regulation and direct intervention where markets are demonstrable, not workable.
These pro-competitive steps can promote higher efficiency in our health system, and slow the expansion of health spending, freeing up resources that may result in stronger economic growth.