The Congressional Budget Office (CBO) just submitted a testimony to the Senate regarding the best ways to expand health insurance coverage while reducing health care costs. The 32 page testimony contained some surprising information. It revealed that the total spending for health care will amount to 18% of the U.S. gross domestic product for 2009, or the equivalent of $8,300 for every man, woman and child if you do the math. It also stated that there will be at least 45 millions of uninsured Americans this year.
The CBO report warned that if health insurance and health care policies don't change, the total health care expenditure will rise to 20% by 2017, with an estimated 54 million uninsured by the year 2019.
There is clearly a problem, and something needs to be done. The CBO suggests a possible way to reduce spending could include changing the current reimbursement system for doctors from the current fee-for-service system to a pay-for-performance system. Medical practitioners and health care facilities would receive bonuses for effective and efficient care, and conversely, providers who perform substandard work would see their payments cut.
The CBO has also suggested that one possible way to expand health insurance coverage would be to begin taxing employer-based group health insurance plans. The tax would theoretically give the consumer an incentive to look for lower cost health plans.
Though the report did touch on some health care solutions, it conceded that getting anything meaningful passed will be a difficult task. And depending on the method of reform, the report stated that any cost reductions may not even be apparent for another decade. - 15224
The CBO report warned that if health insurance and health care policies don't change, the total health care expenditure will rise to 20% by 2017, with an estimated 54 million uninsured by the year 2019.
There is clearly a problem, and something needs to be done. The CBO suggests a possible way to reduce spending could include changing the current reimbursement system for doctors from the current fee-for-service system to a pay-for-performance system. Medical practitioners and health care facilities would receive bonuses for effective and efficient care, and conversely, providers who perform substandard work would see their payments cut.
The CBO has also suggested that one possible way to expand health insurance coverage would be to begin taxing employer-based group health insurance plans. The tax would theoretically give the consumer an incentive to look for lower cost health plans.
Though the report did touch on some health care solutions, it conceded that getting anything meaningful passed will be a difficult task. And depending on the method of reform, the report stated that any cost reductions may not even be apparent for another decade. - 15224
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