Healthcare costs will influence patient choice
In a recent blog post, I discussed a growing trend in patient choice of healthcare providers being based on the cost of services. This has become most apparent in the willingness of private health insurers to provide the insured with provider options based on a "tiering" according to the level of deductibles or co-pays.
A friend and colleague, Richard Wittrup, reported in his blog that health insurance companies in Massachusetts have created policies with such "tiers." Subscribers have a free choice of hospitals, but admission to the higher cost hospitals requires a higher deductible. So, for example, there would be a $150 deductible for low-cost hospitals and $1,500 for high-cost alternatives.
He goes on to report that in the December 7 issue of the Boston Globe, a front-page story explains that Harvard Vanguard, a large medical group, has shifted a portion of its admissions from a higher cost medical center to a lower cost hospital.
This competitive "tiering" strategy is not focused exclusively on private insurance companies. In an editorial in the December 28 opinion section of The Los Angeles Times, an article describes a workable alternative for Medicare reform. It cites the Wyden-Ryan plan that offers a bold and politically risky option to help slow the rate of growth in Medicare expenditures.
Starting in 2022, it would provide seniors with subsidies that could be used to buy insurance through regional exchanges similar to those established by the health reform law. Rather than eliminating standard Medicare for anyone becoming eligible for Medicare coverage, it would make Medicare available as an option through the regional exchanges. As a result, government would provide coverage as it does today, and allow seniors the option of obtaining coverage through private insurers.
All of these changes in conventional private insurance and Medicare coverage could gain additional momentum after the 2012 presidential and congressional elections. Get ready for what will prove to be some very interesting times in healthcare.
Happy New Year!
Mike Stephens blogs regularly at Action for Better Healthcare.
