To best promote healthcare delivery and payment reform, the public sector should fund research, provide access to capital, work closely with the private sector and limit its regulation to address “market failures” such as monopolies, two economists contend in the latest issue of Health Affairs.
Public officials should consider how the private market will react to payment initiatives and the potential for duplicate, costly, burdensome or destabilizing policies, wrote authors Aparna Higgins and Neeraj Sood.
Higgins is vice president of private market innovation at America's Health Insurance Plans, a trade group for insurers. Sood is an associate professor at the University of Southern California and director of international programs for its Leonard D. Schaeffer Center for Health Policy.
Medicare should consider whether the public sector has already set its own standards before launching a payment or delivery program, the paper said. Federal officials may also consider how widely used less-developed private or public efforts may be and whether private efforts would be applicable to Medicare.