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Sunday, March 12, 2017

9 Drivers of High Healthcare Costs in the U.S



The Commission's report outlined many findings, including the main drivers of high healthcare costs in the U.S. Here are the nine primary drivers, according to the report.
1. Physician, facility and drug costs. Data from the Organization for Economic Cooperation and Development have consistently showed the average unit costs for U.S. physicians, hospitals, facilities and drugs are the highest in the world.
2. Expensive technologies and procedures. When Americans do receive treatment, they often choose the most expensive technologies and procedures. For example, MRIs in the United States occur twice as often compared with the average country in OECD data.
3. Fragmented and uncoordinated care. Because care providers often treat the same patient with little consultation, unnecessary care, errors and dissatisfaction proliferates.
4. Lack of cost consideration from patients. There is an assumption among patients that the most expensive care leads to the best quality, but expensive care has no correlation with quality. Patients have limited capabilities to participate in the cost decision making process of their care.
5. Fee-for-service. Hospitals and physicians are reimbursed for every service they provide, which often leads to a focus on volumes instead of a focus on care.
6. High administrative expenses. The morass of health insurers and billing processes cost the U.S. healthcare system billions in wasted costs every year.
7. Unhealthy behaviors. Chronic illnesses — like heart disease, cancer and diabetes — cause about 70 percent of all deaths in the United States, and they are the most expensive to treat. A majority of chronic illnesses stem from unhealthy behaviors.
8. Expensive end-of-life care. The last year of an American's life is the most expensive for medical treatment, and the unnecessary procedures and repeated hospitalizations provide little value to the patient and the system at large.
9. Provider consolidation. Hospitals and health systems are merging and acquiring each other at a feverish pace, and the same goes for physician groups. Studies have shown that although provider consolidation leads to some economies of scale, the increased market power leads to higher prices and oligopolistic behaviors.

Wednesday, March 08, 2017

Health Care, Need to follow ACA rules until there is a change.

House Republicans have released their first draft of a bill to "repeal and replace" the Affordable Care Act (ACA). It is important to understand that significant changes to this proposed bill are expected. Until such time as a "repeal and replace" bill is signed into law, your clients must comply with all existing ACA requirements to avoid penalties for noncompliance. HR360 has prepared a news alert that you may choose to email your clients in order to clarify their understanding of the process that has begun with the first draft of the "repeal and replace" bill.

Tuesday, March 07, 2017

Life and Health News from AMS

What to Consider When Choosing a Place to Retire
benefits gapWhen planning for your retirement, where you’ll live will be one of your biggest and most important decisions.

According to AARP, most Americans “retire in place.” They enjoy being near family, friends and their current amenities. Those who want change can be satisfied by frequent vacations or stays at a getaway home. Read on for details.
Take Charge – DIY Healthcare Cost Reduction
vision insurance
Although healthcare costs are expected to grow modestly in 2017, you still can be hit with some high medical bills. Read on for details.
Ensuring a Good Life for Your Family with Life Insurance
life insuranceOnce you’ve decided you want to purchase life insurance to protect your family, you have more decisions to make. For example, how much life insurance coverage do you need, and how much will it cost? Read on for details.
Retired? Need a Dentist? Here Are Your Options
Medicare does not cover dental procedures, unless they are part of a medical emergency and you receive care in a hospital. That means Medicare enrollees usually must pay for dental care out-of-pocket. Read on for details.