I've just returned from the Benefits Selling Expo and my head still feels a bit cloudy. Besides a bit of sleep deprivation, I've got the word "cost" ringing in my ear.
Because I don't think I've ever heard that word muttered as much as I did last week.
Some self-funded guys told me self insurance is becoming more popular as a way to control costs.
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Health Affairs editor and keynote speaker Susan Dentzer said of health care problems: "Still, as you know, the issue is cost, cost, cost…"
During a panel about how employers choose products and brokers, Lara Kent, benefits manager at Brinker International, said of the PPACA that while "there are a couple good things in the law, my problem is that it doesn't address health care costs."
Even Howard Dean—yes the same Howard Dean who loves universal health care—said he's got a problem with the president's health reform solution because it does nothing to address cost control.
"There is almost no successful economic incentive to drive the cost down," Dean explained in his keynote address. "And it's simple: I'm a physician, you come to me, I tell you what to buy, we send the bill to the third party and I get paid for everything I do whether it works or not. The more I do to you, whether it works or not, the more I get paid."
The entire incentive in this system is to spend as much as you possibly can, and that's why health care cannot continue as it is.
And reports are constantly coming out reassuring us that, yup, cost is a problem. Take a recent study from The Commonwealth Fund: They found though America spends more on health care than 12 other industrialized countries, the quality isn't any better.
Though it's the most obvious problem, ironically we have this massively expensive health reform bill, which another study by a Medicare trustee says could tack on some $500 billion to the deficit.
Sure, we can all agree that cost is the problem, but solving it is where it all gets tricky. And considering the government, employers and health insurance companies have yet to figure this out, don't expect this journalist to solve the problem.
But I will remind you of this—roughly 5 percent of the population is responsible for almost half of all health care spending in the United States. As Dentzer talked about, there are a ridiculous number of preventable diseases (and ultimately deaths) that are caused by poor diet and physical inactivity.
Just a penny—or some food—for thought.
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