-- The root causes of these problems lie deep within the structure of our health-care system. No one currently has an incentive to seek, or provide, quality, cost-efficient health care; our employer-based health insurance system lacks meaningful competition. Without controlling costs, we will never achieve affordable universal coverage.
Employees usually have no choice. Insurers demand all of an employer's business - to reduce per-employee overhead costs and avoid enrolling only the sickest workers. So employees have no choice of a plan (if they are offered health care at all). But employees, understandably, want to choose their doctors. Thus, to satisfy both employees and insurers, employers can offer only one plan that provides access to most doctors. The only way to reimburse any doctor an employee might choose is on a fee-for-service basis - a system with the worst incentives to drive up costs: the more services, the more fees.
-- The nation must replace employer-provided health insurance. Past
employer efforts to provide affordable, quality health benefits have
failed. The market is flawed, leaving those most in need without coverage
and driving costs ever higher. A government-run, command-and-control system
will not succeed; and devolving complex medical decisions from doctors to
patients will not yield affordable care either. Instead, we must
restructure the health-insurance market (and through it the health-delivery
system) so that all Americans can afford and obtain
|SOURCE The Committee for Economic Development|
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