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Health-care economics and policy: It's a perfect storm
Date:6/1/2010

te, and health insurance premiums have nearly doubled since 2000, increasing four times faster than wage growth, making the affordability of healthcare one of the pressing issues.
  • Financing: Due to inherent flaws in the Sustainable Growth Rate formula, Congress has had to make expensive "fixes" to Medicare physician reimbursement each year since 2003, in order to override potentially catastrophic cuts in Medicare physician reimbursement. Many physicians have either opted out of the Medicare program or quietly restricted access to new Medicare patients, due to low reimbursement rates, which often do not cover the cost of providing care.
  • Access: Finding a physician who is willing and able to provide treatment to new Medicare patients has been and continues to be a challenge.

    Estimates show that by 2017, almost 20 percent of the United States economy more than $4 trillion will be spent on health care.

    "In 2008, the cost of health care increased two times the rate of inflation, and it is expected to increase at similar rates for the next decade unless something is done," added Dr. Bozic. "Whatever measures are taken to rein in Medicare costs will ultimately benefit patients as well as physicians," he concluded.

    Among a few solutions, Bozic and his co-authors suggest:

    • Preventing costly, unnecessary hospital readmissions. Elderly individuals with osteoporosis, back problems or arthritis use the emergency department and hospital at a higher than average rate compared with those without such problems. Sixty-four percent of Medicare patients hospitalized for a hip fracture wind up back in hospital within thirty days.
    • Enhance communication among health-care providers, patients and family caregivers. In a recent AARP study of older adults with chronic conditions, nearly 20 percent said their health had suffered because of poor communication.
    • Realigning the physician payment system to reward good perfo
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    Contact: Lauren Pearson
    pearson@aaos.org
    847-384-4031
    American Academy of Orthopaedic Surgeons
    Source:Eurekalert

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