| The cost of health insurance continues to climb | | | | paperwork to get paid. |
| unabated. As the number of uninsured in America | | | | Inefficiencies are expensive. Administrative |
| swells to 45 million people, many look to our | | | | expenses are the fastest-rising component of |
| political leaders for answers and relief. | | | | health expenditures. In 2002, public and private |
| Presidential campaign rhetoric about how to | | | | insurance spent $105 billion on administrative |
| control skyrocketing health care costs provides | | | | expenses, almost 13 percent more than in 2001. |
| only short-term solutions focused on the sticker | | | | Support for developing common standards and |
| price. But the administration should address | | | | technology improvements is necessary to |
| long-term solutions to the spiraling crisis. | | | | eliminate the costly inefficiencies that contribute to |
| In 2002, the United States spent $1.6 trillion, or | | | | rising health costs. |
| nearly 15 percent of GDP, on health expenditures. | | | | Next, support the release of cost and quality |
| Medicare, the government's single payer model | | | | information. Most of us know where we can find |
| for seniors, spent $267 billion. | | | | the best deal on a car, mortgage or even shoes. |
| Analysts project national health care expenditures | | | | But how many people can afford to buy |
| to reach $3.1 trillion by 2012 - nearly twice the | | | | something without ever knowing the price? |
| amount spent in 2002. The dramatic numbers | | | | Do you know the average cost of a physician |
| have a tendency to overstate the obvious - for | | | | office visit? We have grown accustomed to the |
| many, the cost of insurance can be as much, if | | | | minimal office co-payment as the benchmark for |
| not more, than rent or a mortgage. Until the | | | | the cost of delivering care. Yet who would |
| administration places its focus on the rising cost of | | | | seriously consider a $10 co-payment a sufficient |
| health care, those costs will continue to escalate | | | | amount for physician treatment? |
| far exceeding the rates of earnings. Whether you | | | | As consumers, we are asked to bear a greater |
| subscribe to a higher monthly premium charged | | | | share of health care costs. In return, we should |
| by an HMO or a payroll tax collected by Uncle | | | | demand more information about price and quality. |
| Sam, someone has to pay the bill. Shifting the | | | | Disclosure of such information has the potential to |
| burden from our premium bill to our tax bill is not | | | | have a profound effect on consumer behavior |
| an acceptable solution. | | | | and the cost and quality of health care. Such |
| There are basic initiatives that policymakers need | | | | transparency should reform inequities and |
| to address in an effort to streamline the delivery | | | | deficiencies in the cost of health services. |
| system and minimize the soaring cost of health | | | | There is no single magic bullet to solving the |
| care. | | | | issues facing the American health care system. |
| First, encourage investments in technology | | | | Our system is an immense and complex web of |
| improvements across all levels of the health care | | | | interdependencies. Expanded public financing and |
| delivery system, including insurers, hospitals and | | | | subsidies will provide only short-term relief unless |
| physicians. For a $1.6 trillion industry in the 21st | | | | the drivers of health care expenditures are |
| century, the technology employed is comparable | | | | resolved. Solely addressing the problem by |
| to driving a Model T on a highway full of modern | | | | throwing more money at it, public or private, while |
| cars. | | | | ignoring the elephant in the living room serves little |
| Consider the banking industry. A simple piece of | | | | to alleviate the large financial burden the health |
| plastic, from any bank, allows you to purchase | | | | care system has become. |
| anything from antiques on eBay to milk at the | | | | We must accept the fact that health care in the |
| local grocery store. In health care, the piece of | | | | United States is expensive and get to work on |
| plastic serving as an ID card serves little purpose | | | | long-term solutions that will effectively control |
| other than to inform the physician where to send | | | | costs. We have the ability to control health care |
| the bill. Physicians and their staffs then spend an | | | | costs in this country; what we lack are the |
| inordinate amount of time completing the proper | | | | commitment and stamina to get it done. |