Obamacare May Finally Cut Health-Care Costs
Posted at 6:30 a.m. on Dec. 5, 2013
James Surowiecki makes a convincing argument that Obamacare is helping to usher in “deeper structural changes in the health-care system” that ultimately will control costs for all.
“Hospitals and doctors have typically been paid on a fee-for-service basis … Insured patients have paid only a small fraction of the cost of their care, and insurers have just passed costs along to their customers. Employers and the government, meanwhile, have been left to foot the bill.”
Said investor Jason Yeung: “What we’re moving toward instead is a world in which everybody in the system is sharing financial risk … And therefore everybody has an incentive to control costs.”
“The Affordable Care Act is also helping hold down costs by changing incentives for hospitals and doctors.”
“What all these initiatives have in common is the idea that health-care providers are going to be paid based on the value they deliver, rather than on the services they perform.”