Modern Healthcare

Businesses know what’s needed to tame costs

- By Katie Mahoney and Jennifer Pierotti Katie Mahoney is executive director of healthcare policy and Jennifer Pierotti is senior manager of healthcare policy for the U.S. Chamber of Commerce.

Healthcare costs are unsustaina­ble, and even supporters of the Patient Protection and Affordable Care Act concede that the law will not rein them in. The growing burden of our aging population, lost productivi­ty from chronic conditions and diseases, inefficien­cies in the delivery of care, and misalignme­nt of incentives in paying for health services are overwhelmi­ng. As we tackle these challenges, cues should be taken from the innovation­s developed by the private sector to confront these same challenges.

After all, businesses have grappled for years with many of the same issues. What is the likely cost and outcome of a particular healthcare service? What option would be best in a given situa- tion? How much protection is appropriat­e to cover potential healthcare costs? In trying to find answers for our entire system, consider the solutions that many businesses have designed and offered to their employees. This is where the U.S. Chamber of Commerce began its efforts to identify a path forward. Businesses have long provided insurance coverage, paying for healthcare services for millions of Americans, so they have a vested interest in better health for all. It is clear what has worked and where barriers exist. Based on this, we know what is necessary to ensure that these successes can be more widely realized.

As emphasized in our Health Care Solutions Council report released in 2013, the private sector has many strategies on how to provide meaningful informatio­n on the cost and quality of services and providers; promote high-value programs that improve health and control unnecessar­y costs; offer a variety of insurance options, promoting flexibilit­y; improve coordinati­on between Medicare and Medicaid; and restructur­e Medicare benefits to encourage efficient use of services.

To advance innovation and achieve these goals, we must look at what has been effective in the past and what has stifled innovation. Healthcare reform did not start with the ACA and cannot end with its implementa­tion. Let’s identify what has worked, fix what has not, and realize that flexibilit­y and collaborat­ion are critical in moving forward.

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