A recent New York Times column, Obamacare’s Other Surprise, by Thomas L. Friedman echoes what we’ve been hearing from health care providers and innovators: Data that support medical decision-making and collaboration, dovetailing with new tools in the Affordable Care Act, are spurring the innovation necessary to deliver improved health care for more people at affordable prices.
Today, we are focused on driving a smarter health care system focused on the quality – not quantity – of care. The health care law includes many tools to increase transparency, avoid costly mistakes and hospital readmissions, keep patients healthy, and encourage new payment and care delivery models, like Accountable Care Organizations. Health information technology is a critical underpinning to this larger strategy.
Policies like these are already driving improvements. Prior to the law, nearly one in five Medicare patients discharged from a hospital was readmitted within 30 days, at a cost of over $26 billion every year. After implementing policies to incentivize better care coordination after a hospital discharge, the 30-day, all-cause readmission rate is estimated to have dropped during 2012 to a low of 18 percent in October, after averaging 19 percent for the previous five years. This downward trend translates to about 70,000 fewer admissions in 2012.
Insurance companies are also now required to publicly justify their actions if they want to raise rates by 10% or more. Since the passage of the Affordable Care Act, the proportion of requests for double-digit rate increases fell from 75 percent in 2010 to 14 percent so far in 2013.
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Reforms like these have helped slow Medicare and Medicaid spending per beneficiary to historically low rates of growth.
Date: May 28, 2013