Monday, February 28, 2005
Out of control
[Editorial, "Runaway costs damage economy," The Kansas City Star, 28 February 2005.]
While it should come as no surprise, rising health care costs are once again making headlines around the country thanks to a new release from the Centers for Medicare and Medicaid Services:
Businesses, political leaders and the public should all take note of the federal government's latest forecast on health-care costs. It's a storm warning.
According to the Centers for Medicare and Medicaid Services, health-care costs will continue their rapid rise through the next decade, claiming nearly 19 percent of the gross domestic product by 2014 — a record.
All this will just get worse unless more attention is focused on restraining health-care costs. The new federal report predicts that public and private spending on health care will average more than $11,000 per person by 2014, up from just more than $6,000 in 2004.
Some of the crisis may be overblown. For instance, it may not necessarily be a sign of trouble if society chooses to spend more resources on health care relative to anything else. And health outcome comparisons that show the U.S. lagging other countries are often subjective at best. But the pace of spending growth is truly astounding, while the level of satisfaction remains low.
The problem is to address both deficiencies. Where applied, top-down controls such as managed care have actually achieved successes at containing costs, but satisfaction is a problem and that leads policymakers to shy away from their use. Until a reform is introduced that allows for choice while also instilling cost sensitivity, health care cost growth will continue to make headlines. Fortunately, consumer-driven health care aims to accomplish just that goal.
[Devon Herrick, "Health Savings Accounts: The Future of Health Care for Kansans," The Flint Hills Center, 14 February 2005.]
[Editorial, "Runaway costs damage economy," The Kansas City Star, 28 February 2005.]
While it should come as no surprise, rising health care costs are once again making headlines around the country thanks to a new release from the Centers for Medicare and Medicaid Services:
Businesses, political leaders and the public should all take note of the federal government's latest forecast on health-care costs. It's a storm warning.
According to the Centers for Medicare and Medicaid Services, health-care costs will continue their rapid rise through the next decade, claiming nearly 19 percent of the gross domestic product by 2014 — a record.
All this will just get worse unless more attention is focused on restraining health-care costs. The new federal report predicts that public and private spending on health care will average more than $11,000 per person by 2014, up from just more than $6,000 in 2004.
Some of the crisis may be overblown. For instance, it may not necessarily be a sign of trouble if society chooses to spend more resources on health care relative to anything else. And health outcome comparisons that show the U.S. lagging other countries are often subjective at best. But the pace of spending growth is truly astounding, while the level of satisfaction remains low.
The problem is to address both deficiencies. Where applied, top-down controls such as managed care have actually achieved successes at containing costs, but satisfaction is a problem and that leads policymakers to shy away from their use. Until a reform is introduced that allows for choice while also instilling cost sensitivity, health care cost growth will continue to make headlines. Fortunately, consumer-driven health care aims to accomplish just that goal.
[Devon Herrick, "Health Savings Accounts: The Future of Health Care for Kansans," The Flint Hills Center, 14 February 2005.]
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