This article describes initiatives undertaken by Blue Cross Blue Shield of Michigan producing lowered healthcare costs for its subscribers since the phased implementation of the PPACA in the US. It describes how providers are moving away from fee-for-service payment models to fee-for-value, rewarding preventative care. Stipulations of the PPACA have made this transition a requirement for service providers, and new contracts are driving down insurance premiums.
These developments are important in the evolution of the U.S. healthcare markets. Insurance companies and the government are placing extensive pressure on providers to supply preventative care at affordable rates; insurers are now required to some extent to cover preventative care and to assume universal insurer of last resort capacity. Overall, these industry changes will likely increase the long-term health of the U.S. population and lower medical expenses on catastrophic procedures and hospitalizations, which will stabilize much of the healthcare situation with at-risks and previously-uninsured parties. However, the effects on premiums for comparable plans and on corporate provision of health services and hiring has yet to be determined, and will likely form a significant component of the political battleground in 2016.
http://www.detroitnews.com/story/business/2015/04/06/blue-cross-incentives/25392361/
4 comments:
I think it is extremely encouraging to see that Health insurance providers are moving to fee-for-value models that reward preventative care. Personally, I think this model makes more sense than the fee-for-service model which almost encourages higher medical expenses. In the fee-for-service model, individuals are more likely to go to the doctor only when they are experiencing severe medical conditions, which are often extremely expensive to treat. Ultimately, treating severe medical conditions is much more costly than consistent preventative care.
I agree with Emily this is extremely encouraging to see that Health insurance providers are moving toward fee-for-value models that reward preventative care. We are trying to cut the cost of health care for individuals, so it is encouraging to see this. We should be taking steps to prevent serious illness and for a healthier society. This is what this reward preventative care gives us with people staying on top of their health.
This also appears that it will help wellbeing of the United States community. With many people going below the poverty line after paying high medical bills or hardly having insurance because they were denied because of pre existing conditions. With preventative care we will have healthier people that will overall help our community.
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