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June 30, 2012 12:00 AM

Affordability is key

Attention must be paid to law's provisions that threaten to increase costs

Karen Ignagni
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    Karen Ignagni is president and CEO of America's Health Insurance Plans
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    With the legal questions regarding healthcare reform settled, job No. 1 must be tackling the very serious affordability issues ahead.

    Affordability is the issue that keeps millions of Americans awake at night. It is the issue that agonizes small-business owners struggling to keep their doors open. It is also a strategic challenge to large American employers facing global competitors from nations that devote a much lower share of their spending to healthcare. Affordability is what will ultimately determine whether or not healthcare reform works.

    The facts are well known in policy circles. We spend more, far more, than our OECD competitors, and healthcare crowds out investments in other critical national priorities such as education and infrastructure. Rising healthcare costs are a contributor to stagnant wage growth.

    What can be done? First and foremost, we need to focus on provisions of the law that raise costs. That starts with repealing the misguided premium tax that the Congressional Budget Office has said will result in dollar-for-dollar premium increases for individual market purchasers, small employers and those covered by private Medicare and Medicaid plans. Taxing healthcare coverage can only make that coverage more expensive, not more affordable.

    The essential health benefits and actuarial value provisions are intended to ensure that all Americans have quality coverage. But in compelling millions of currently insured Americans to purchase much more coverage than they currently have, they will, by definition, result in higher costs. These provisions need to be implemented with affordability squarely in mind and need to be constantly monitored to assess whether more flexible approaches would provide relief to individuals and small employers.

    A system-wide, all-stakeholder commitment to delivery and payment reform also is needed. Health plans and providers are partnering more actively than ever to promote prevention and wellness, help patients and physicians manage chronic disease, and reward quality care. The law includes promising pilots aimed at getting public programs to emulate private-market innovations. Both sectors need to continue building upon the progress being made to improve quality, ensure greater value for our nation's health spending and promote affordability.

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    • News
      • Current News
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      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
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        • West
      • Digital Edition (Web Version)
    • Blogs
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      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
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      • Hospital Financials
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