Sunday, June 14, 2009

Are Health plan CEOs really saying pay less for services?

An organization called Health CEOs for Health Reform has come out with its ideas for health care reform (http://www.newamerica.net/files/DeliverySystem2pager.pdf). While they have a number of recommendations they can be summarized into three primary points:

1. Medicare needs to fix health care...
2...this is best done by bundling payments instead of payment for services, and...
3...having medicare evaluate and manage quality and utilization.

These are interesting thoughts especially given the source...these are health plan CEOs. One possible take is they are asking for Medicare to provide "political cover" for doing the hard work of the reform -- remember the backlash to HMOs and managed care from a decade ago?

The other way to think about this is to interpret this as "Medicare is causing the health cost inflation by undermining the great work of the health plans and they should cease and desist."

Either view is likely controversial, but definitely very interesting.

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