NEJM Perspectives Examine Effects of Economic Recession, Economic Stimulus Plan on U.S Health Care System; Report Discusses Cost-Savings of Health Savings Accounts

• "Health, Medical Care and Economic Crisis," New England Journal of Medicine: In the perspective, Ralph Catalano, a professor of public health and director of the Robert Wood Johnson Foundation Health and Society Scholars Program at the University of California-Berkeley, discusses how "a contracting economy" might affect the U.S. health care system and people's use of health care services. He predicts that "medical providers will first see a small decrease in demand as copayments become more onerous, more patients lose their insurance and some people take fewer risks and become healthier." However, as time goes on, he predicts an "increased demand for services from people who 'deferred maintenance' because of costs and therefore become ill" (Catalano, NEJM, 2/19).
  
  
• "Health Care and the American Recovery and Reinvestment Act," NEJM: In the perspective, NEJM national correspondent Robert Steinbrook discusses how the $787 billion economic stimulus package, which President Obama signed into law on Tuesday, has "jump-started the Obama administration's plans for health care." According to Steinbrook, the "economic impact of the [stimulus bill] will not be apparent for months," but "[b]y launching broad federal initiatives for biomedical and comparative effectiveness research, the adoption of health information technology, and the protection of the privacy and security of medical records, the stimulus law should have major and immediate effects." He concludes, "Clearly, the economic crisis has allowed the Obama administration to undertake far-reaching health care initiatives that it could not otherwise have launched quickly, if at all," adding, "The government will now have to determine how to spend the money promptly -- and wisely" (Steinbrook, NEJM, 2/17).
  
  
• "HSA Health-Insurance Plans After Four Years: What Have We Learned?" Center for Medical Progress: In the report, Manhattan Institute senior fellow Benjamin Zycher finds that health savings accounts have the potential to reduce health care costs and have grown in popularity. Zycher also makes recommendations to simplify regulation of HSAs and strengthen financial incentives to participate in HSAs (Manhattan Institute release, 2/17).