Cutting America's High Health Care Costs: A Prescription - The Minute

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Cutting America's High Health Care Costs: A Prescription - The Minute

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Thursday, January 22, 2015 - 4:00pm

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CONTENT: Multimedia with summary

Competition is reducing costs in health care. That’s the argument in a recent Fortune article by Ezekiel J. Emanuel, Chair of the Department of Medical Ethics and Health Policy at the University of Pennsylvania. Exhibit A is the health insurance exchanges of the Affordable Care Act. An evaluation by Kaiser Health News of the 2015 premiums for plans in 34 states with federally operated exchanges shows that in counties with no new insurers in the market, premiums increased an average of seven percent. In those with at least one new insurer, premiums increased just one percent.

Emanuel cites a previous example where increased market competition has resulted in decreased costs. Medicare Part D, which went into effect in 2006, established a competitive market for drug benefit plans. Today, there are over one thousand Part D plans, and the Congressional Budget Office reports that the program has cost $197 billion less than projected, 50 percent below original estimates. Competitive bidding for durable medical equipment, also included in the Part D law, has resulted in savings of 42 percent. This program will expand under the ACA in 2016. Sounds like competition is the right prescription for healthy cuts in U.S. health care costs.

I’m John Howell for 3BL Media.

Video source: Cutting America’s High Health Care Costs: A Prescription

Keywords: Health & Healthcare | Affordable Care Act (ACA) | Congressional Budget Office | Ezekiel J. Emanuel | Kaiser Health News | Medicare Part D | Responsible Business & Employee Engagement

CAMPAIGN: The CSR Minute

CONTENT: Multimedia with summary

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