Friday, June 7, 2013

Why So Much Recent Fuss About Health Care Costs?

http://www.forbes.com/sites/toddhixon/2013/06/06/why-so-much-recent-fuss-about-health-care-costs/?utm_source=followingdaily&utm_medium=email&utm_campaign=20130607

Todd Hixon discusses a unrealized aspect of the Affordable Care Act, the shifting of spending at the provider level.  There is a unscientific rule in life which applies to economics called the "The Law of Unintended Consequences".  Maybe you are familiar with this life principal when you thought you of a time where you thought you were doing the right thing in a contrary situation to achieve the best outcome only to find out days, weeks, months, or even years later that what you did actually ended up hurting the situation.

I believe we have an example of that situation unfolding with regards to healthcare costs and the provider experience.  If health plans sold via the exchanges have high/ rich benefits what reason would I have to shop for the lowest cost?  Similarly, if I am a provider that is now being paid at higher than Medicaid levels (in states where Medicaid was not expanded) I am going to be getting paid 70%-100% more for patient treatment than I was previously.

How are we going to afford this type of change without a method to have market forces drive care/ treatment to those with the best cost and efficiency outcomes?

More to come....

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