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Americaaposs Health Insurance Plans

Health Care

Plan to Reduce Health Care Costs by $145 Billion

Published: Wednesday, June 4, 2008 - 22:00

(AHIP: Washington, D.C.)-- The U.S. could reduce total health care spending and improve the quality of patient care if the plan recently proposed by America’s Health Insurance Plans (AHIP) is implemented. PricewaterhouseCoopers reviewed AHIP’s proposals and estimates, and concluded that if these proposals are fully implemented, the nation’s total health care expenditures could be $145 billion lower than currently projected by the year 2015.

“Based on our analysis, these initiatives, if implemented broadly, can yield significant savings,” says Jack Rodgers, director of health policy economics at PricewaterhouseCoopers.

The rising cost of medical services has a clear effect on patients, employees, employers of every size competing in an increasingly global marketplace, and taxpayers who fund public health care programs. Reflecting the urgent need to stem the unsustainable growth in the cost of medical care, AHIP’s board of directors developed a strategy that teams innovative health plan cost containment tools with sensible public policy initiatives to make health care more affordable. This initiative is part of an 18-month effort to present a roadmap that offers comprehensive solutions to address the nation’s health care crisis. These solutions have been designed to be workable, affordable, and achievable now—through a uniquely American public-private effort.

In November 2006, AHIP’s board of directors announced a comprehensive proposal to cover every American using a public-private, federal-state approach. In April 2007, AHIP’s board proposed a set of recommendations that, if implemented, would lead to a safer, higher quality health care system. In December 2007, AHIP’s board released a proposal to guarantee access to health care coverage in the individual market and announced support for third party review of rescission decisions and their commitment to limiting pre-existing condition exclusions.

“The nation faces complex health care challenges and only an integrated strategy that addresses costs, quality and access will bend the cost curve and allow the country to ensure that all Americans have access to affordable health care,” says Karen Ignagni, president and CEO of AHIP.

Disease management, care coordination, prevention, moving from paper to electronic transactions, transitioning to a value-based payment system, and addressing how new technology can be most effectively introduced into the system will allow the country to achieve more value for its health care investment. The AHIP proposal presents programs that are working now in these areas and maps out how the public and private sectors can work together to achieve these goals.

“The goal is to keep people healthy and health insurance plans have pioneered the next generation of cost containment strategies necessary to advance this objective,” states Ignagni. “Health insurance plans have made measurable progress, but the nation needs a coordinated approach across the public and private sectors to maximize the impact of these strategies.”

For further information, visit www.ahip.org/content/pressrelease.aspx?docid=23426.
To view the proposal, visit www.ahip.org/content/default.aspx?docid=23427.

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