When High-Deductible Plans Are The Norm For Employers, Even People With Insurance Can’t Afford To Get Sick
The thinking has been that requiring workers to shoulder more of the cost of care will also encourage them to cut back on unnecessary spending. But it didn't work out that way. In other industry news: competition in the marketplace and General Electric's plans to spin-off its health care business.
Bloomberg:
Sky-High Deductibles Broke The U.S. Health Insurance System
Today, 39 percent of large employers offer only high-deductible plans, up from 7 percent in 2009, according to a survey by the National Business Group on Health. Half of all workers now have health insurance with a deductible of at least $1,000 for an individual, up from 22 percent in 2009, according to data from the Kaiser Family Foundation. About 41 percent say they can’t pay a $400 emergency expense without borrowing or selling something, according to the Federal Reserve. The bottom line: People like the Jordans simply can’t afford to get sick. (Tozzi and Tracer, 6/26)
Modern Healthcare:
Fragmented Markets Inflate Healthcare Spending
A new study reveals that the number of competitors in a given market may be less important than the type of competitors when analyzing healthcare costs. Sufficient competition, even between only two health systems, generally translated to lower healthcare costs, according to a report from the Healthcare Financial Management Association, Leavitt Partners and McManis Consulting, with support from the Commonwealth Fund. The reseach examnined cost indicators using commercial data from 2012 to 2014, and Medicare data from 2007 to 2015. (Kacik, 6/25)
The Wall Street Journal:
GE To Spin Off Health-Care Business In Latest Revamp
General Electric Co. plans to spin off its health-care business and unload its ownership in oil-services company Baker Hughes, people familiar with the matter said, betting that the once-sprawling conglomerate can reverse a painful slump by further shrinking. The moves are the conclusion of a yearlong strategic review by CEO John Flannery that has been tumultuous for GE employees and investors. The onetime industrial bellwether has slashed its dividend and has already set plans to shed numerous businesses. Its shares have tumbled by half in the past year, erasing more than $100 billion in wealth. (Gryta, 6/26)
And in more news on the new head of the billionaires' health initiative —
Boston Globe:
Dr. Atul Gawande Has Long Searched For A Cure For The Health Care System
Instead Gawande, a best-selling author and surgeon, frets over processes and systems that others might find tedious, but that can make the difference between life and death. His signature innovation is a drab slip of paper called the surgical checklist, 19 steps intended to prevent mistakes by having the operating-room staff pause and check at critical junctures. (Freyer, 6/25)
Kaiser Health News:
Gawande’s Goal Is Providing The ‘Right’ Health Care In New Venture By 3 Firms
Dr. Atul Gawande, the famed surgeon-writer-researcher chosen to lead a joint health venture by three prominent employers to bring down health costs, said his biggest goal is to help professionals “make it simpler to do the right thing” in delivering care to patients. His comments at the Aspen Ideas Festival came just days after being named chief executive of a health care partnership unveiled earlier this year by Amazon, Berkshire Hathaway and JP Morgan Chase & Co. The new enterprise will oversee health coverage for about 1.2 million employees of the companies and their families. Gawande said he will focus on the same behaviors by doctors and hospitals that he studies at his Boston-based think tank Ariadne Labs. (Rovner, 6/26)
