The Private Sector Can Lead In Delivery System And Payment Reform

Editor’s Note: This is the fourth in a five-part Health Affairs Blog series, produced in conjunction with the Bipartisan Policy Center, examining current issues and care models in the delivery system reform effort. Each post will be jointly authored by Democratic and Republican leaders in health policy. Check back for more posts in the series. Employers and other private purchasers of medical services have played an important role in spurring health care delivery system and payment reform. The development of managed care has been accelerated by federal and state policies over the years but originated with private sector purchasers. Other models, such as accountable care organizations and bundled payments, were initially designed by employers seeking to improve value in the coverage they offered to their employees. These models are now being used to improve quality and lower costs in Medicare and Medicaid. Today, more than half (56 percent, or nearly 156 million) of all Americans receive their health care insurance through employer-sponsored plans. They have an important stake in how delivery system and payment reforms affect out-of-pocket costs and the quality of care. The alignment of interests between employers and employees could be a potent force to encourage changes that benefit both as well as the broader health care market. In addition, the private sector has the ability to move quickly to test new approaches because it faces fewer political constraints than the fed...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Costs and Spending Featured Organization and Delivery Payment Policy bipartisan delivery system reform CalPERS reference pricing shoppable services Source Type: blogs