Tuesday, December 1, 2009

Health Populi: The Business Roundtable offers tips for restructuring the health market

by Jane Sarasohn-Kahn

The health care market's broken in the U.S., and it needs more help than Congress's proposals are offering.

What cost $10,743 for per-employee health care costs at large employers in 2009 will cost will nearly triple to $28,530 in 2019 if the status quo continues. If legislative proposals currently being discussed in Congress are implemented, that cost grow to $25,435. With greater restructuring for value, malpractice reform, and evidence-based medicine, the per-employee cost rises less, to $23,151 in 10 years.

The menu of restructuring factors recommended by the Business Roundtable would soften per-employee cost growth to an annual rate of 4% -- far lower than the double-digit increases U.S. employers have faced in the 2000s.

The key recommendations offered by the Business Roundtable are:

1. To transition to a value-based delivery/payment model
2. To differentiate and reward providers based on performance
3. To hold providers accountable for quality care
4. To provide individual consumers incentives and an infrastructure that supports them in making more healthy lifestyle and informed health care decisions.
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