training: what's driving health care costs?
TRANSCRIPT
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What’s Driving Health Care Costs?
http://masscare.org
Universal, Affordable Care for Massachusetts
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U.S. Spends Almost Double Next Highest Spending Country
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Common Explanations for High Health Care Costs
• Inadequate Prevention • Behavioral factors
– High obesity rate – High smoking rate – High levels of drinking
• Racial and Ethnic Makeup of the U.S. • Aging population • End of life care • Chronic Illnesses
– High cancer rates – High diabetes rates – High heart disease rates
• Overuse of technology (e.g. MRIs, CT scans, etc)
• Use more prescription drugs
• Fee-for-service: overuse of tests and procedures
• Lower cost transparency • More third party insurance payers • More physician visits • More ER and hospitals visits • More Medical Malpractice lawsuits • Worse electronic health records • Higher Cost of drugs • Higher cost of medical devices • Too much hospital bargaining power • More profits • More administration/paperwork • Higher physician/nurse pay
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Common Explanations for High Health Care Costs
• Inadequate Prevention • Behavioral factors
– High obesity rate – High smoking rate – High levels of drinking
• Racial and Ethnic Makeup of the U.S. • Aging population • End of life care • Chronic Illnesses
– High cancer rates – High diabetes rates – High heart disease rates
• Overuse of technology (e.g. MRIs, CT scans, etc)
• Use more prescription drugs
• Fee-for-service: overuse of tests and procedures
• Lower cost transparency • More third party insurance payers • More physician visits • More ER and hospitals visits • More Medical Malpractice lawsuits • Worse electronic health records • Higher Cost of drugs • Higher cost of medical devices • Too much hospital bargaining power • More profits • More administration/paperwork • Higher physician/nurse pay
![Page 5: Training: What's Driving Health Care Costs?](https://reader036.vdocuments.site/reader036/viewer/2022081404/55842acdd8b42a86478b4f6a/html5/thumbnails/5.jpg)
Common Explanations for High Health Care Costs
• Inadequate Prevention • Behavioral factors
– High obesity rate – High smoking rate – High levels of drinking
• Racial and Ethnic Makeup of the U.S. • Aging population • End of life care • Chronic Illnesses
– High cancer rates – High diabetes rates – High heart disease rates
• Overuse of technology (e.g. MRIs, CT scans, etc)
• Use more prescription drugs
• Fee-for-service: overuse of tests and procedures
• Lower cost transparency • More third party insurance payers • More physician visits • More ER and hospitals visits • More Medical Malpractice lawsuits • Worse electronic health records • Higher Cost of drugs • Higher cost of medical devices • Too much hospital bargaining power • More profits • More administration/paperwork • Higher physician/nurse pay
![Page 6: Training: What's Driving Health Care Costs?](https://reader036.vdocuments.site/reader036/viewer/2022081404/55842acdd8b42a86478b4f6a/html5/thumbnails/6.jpg)
Common Explanations for High Health Care Costs
• Inadequate Prevention • Behavioral factors
– High obesity rate – High smoking rate – High levels of drinking
• Racial and Ethnic Makeup of the U.S. • Aging population • End of life care • Chronic Illnesses
– High cancer rates – High diabetes rates – High heart disease rates
• Overuse of technology (e.g. MRIs, CT scans, etc)
• Use more prescription drugs
• Fee-for-service: overuse of tests and procedures
• Lower cost transparency • More third party insurance payers • More physician visits • More ER and hospitals visits • More Medical Malpractice lawsuits • Worse electronic health records • Higher cost of drugs • Higher cost of medical devices • Too much hospital bargaining power • More profits • More administration/paperwork • Higher physician/nurse pay
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Disease Prevalence: U.S. vs. Peer Countries
95%
106%
105%
98%
67%
77%
122%
86%
91%
97%
0% 20% 40% 60% 80% 100% 120% 140%
Heart conditions
Trauma-related disorders
Cancer
Mental disorders
COPD, asthma
Hypertension
Diabetes melitus
Osteoarthritis/joint disorders
Back problems
Other
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Disease Prevalence: U.S. vs. Peer Countries
95%
106%
105%
98%
67%
77%
122%
86%
91%
97%
0% 20% 40% 60% 80% 100% 120% 140%
Heart conditions
Trauma-related disorders
Cancer
Mental disorders
COPD, asthma
Hypertension
Diabetes melitus
Osteoarthritis/joint disorders
Back problems
Other
Disease prevalence
= $57 to $70
billion savings
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2.7
6.5 5.5
4.6
6.9
8.2
13.2
5.7
4.3
2.9 4
5
0
2
4
6
8
10
12
14
Physician Visits Per Capita, 2009
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131
162
84
170
263 237
117 142
177 166 168
138
0
50
100
150
200
250
300
Hospital Stays per 1,000 population, 2009
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5.4 5.9
7.7
5.2
7.5
5.6 5.9
4.6 4.5
7.5 6.8
0
1
2
3
4
5
6
7
8
9
Average Length of Hospital Stay in Days, 2009
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Nations With Universal Health Care Coverage
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How Universal Health Care Is Paid For
You Government Fund
Health Care Providers
Fixed Payroll Tax Negotiated Budget
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How U.S. Health Care Is Paid For
You Health Care Providers
Medicaid
Tufts Medical Insurance
Blue Cross
Medicare
Out-of-Pocket Costs
Premiums
Taxes Separate contracts
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OECD Data, 2010
Insurance Administration Costs
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Hospital Administration Costs
OECD, 2010
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Brox. et. al. Arch Internal Medicine, 2003
Aortic Aneurysm Repair Costs
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U.S. Pays Higher Prices for the Same Drugs
mt.gov.com, 2010