Health Costs Payment Reforms

Health Costs: A New Look at Payment Reform Options

By Richard Cauchi Vol . 18, No. 42 / October 2010 

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The cost of health services continues to increase.

The cost of health services to Americans continues to increase at rates often double that of inflation and are predicted to total $2.6 trillion in 2010 and reach $4.6 trillion by 2019 if the health system is not redesigned. Economists agree there is no quick or easy solution, leading to dire predictions of unaffordable premiums, drastic cutbacks, and the need to choose between living costs and medical treatment.

Experts are aggressively researching and developing cost containment strategies to deal with rising health costs. Although evidence is limited about the effects of various payment reforms on overall health expenditures, examples indicate that, in some situations and conditions, payment reforms can improve efficiency and save money.


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