When the Congressional Budget Office released a report suggesting that healthcare reform legislation may not reduce the overall budget deficit , many policy makers and citizens raised a critical eye. A core part of the healthcare reform debate today relates to its role in lowering overall public spending on health expenses. Since the national US budget deficit is at an all-time adjusted high, structuring legislation to reduce long-run health expenses provides a means for more sustainable health policy. Expert Cost Estimates Today, aggregate healthcare expenses cost nearly 20% of the annual Gross Domestic Product, totaling over $2 trillion in spending, and over $7,000 for each citizen. More importantly, the rising trend in health care costs suggests that health expenditures are growing faster than either currency or wage inflation, making adjusted health expenses even higher in a down economy. The current debate in Congress relates to creating incentives for more affordable treatments, better preventative care and broader coverage for the uninsured (whose lack of coverage leads to adverse effects on the aggregate economy.) Over half of aggregate medical expenses are attributed to direct care in terms of hospital stays and direct medical coverage. Spending on preventative care, education and fitness, on the other hand, represents a much smaller portion of costs. As a result, the overall debate on healthcare reform expenses relates to policy conditions under which consumers and local organizations can make better health allocation decisions. Elements of Savings While there is no single panacea to lowering healthcare expenses, there are several approaches which are being actively incorporated into reform efforts. One of these savings elements relates to better medical technology, including electronic medical records, more efficient medical devices and improved communications between health providers. The theory is that with better information, health care professionals can make most efficient and cost effective decisions. By adjusting their decision making, doctors can lower unnecessary medical costs and help encourage faster recovery. Another aspect of savings includes streamlining and prioritizing existing coverage. By investing more in early education, regulating drug marketing costs and providing more effective public options for senior care, policy makers believe they can take steps to lower overall health expenses. Policy makers argue that creating a public regulator which oversees the pharmaceutical, private insurance and medical device industries can provide an effective way to reduce unnecessary costs and prioritize effective, necessary care options.

Tagged with: • •

Filed under: Health Care • Obama Healthcare

Like this post? Subscribe to my RSS feed and get loads more!