Health Care Cost-Containment Strategies Working for Consumers, Seniors and Taxpayers
Posted on: Tuesday, 9 January 2007, 00:00 CST
WASHINGTON, Jan. 9 /PRNewswire-USNewswire/ -- Health care spending increases are moderating as consumers and employers take advantage of health insurance plans' new generation of cost-saving strategies. That's according to a new study of health care spending conducted by actuaries at the Center for Medicare and Medicaid Services (CMS) and published today in Health Affairs, and an updated estimate of the cost of the Medicare prescription drug benefit released January 8, 2007 by CMS.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO )
The health spending study found that "the rate of growth in U.S. health care spending slowed for the third straight year in 2005" and that 2005 "was the third straight year that ... premium growth decelerated and the slowest rate of growth since 1997." The slower rate of premium growth also beat government estimates from 2006.
Karen Ignagni, President and CEO of America's Health Insurance Plans (AHIP), said that a study conducted by PricewaterhouseCoopers, The Factors Fueling Rising Healthcare Costs, noted a direct relationship between consumers' enrollment in multi-tiered drug formularies and a slower rate of growth of prescription drug spending. The CMS study echoed these findings and found that prescription drug spending "continued a dramatic deceleration" and that the recent slowdown was driven in part "by the proliferation of tiered- copayment benefit plans, which slowed growth in brand-name drug use ... "
Slower health care spending growth is being experienced in both the public and private sectors. Government officials are now estimating that the cost of the Medicare prescription drug plan will be much lower than anticipated. The average premium paid by seniors decreased to $22 a month, which is 40 percent lower than originally forecast. The combination of robust competition among Medicare health plans and plans' cost-containment strategies means the cost to taxpayers will be $113 billion less than previously projected.
Ignagni said that Medicare health plans are employing many of the same value-focused techniques that are working in the commercial market, such as multi-tiered formularies that ensure consumers have access to the most cost- effective prescription medicines.
"The Medicare prescription drug benefit continues to exceed expectations as seniors experience lower than expected premiums and lower out-of-pocket costs on their prescriptions," said Ignagni. "Most importantly, seniors continue to express overwhelming satisfaction with their new Medicare prescription drug benefits."
America's Health Insurance Plans - Providing Health Benefits to
More Than 200 Million Americans
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGOAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com
America's Health Insurance Plans
CONTACT: Mohit Ghose of America's Health Insurance Plans,+1-202-778-8494
Web site: http://www.ahip.org/
Source: PRNewswire-USNewswire
Related Articles
- Study Shows Consumers With High Deductible Health Plans Are More Savvy About Controlling Costs, Improving Health
- Diabetes Drugs Emerge As Top Force in Drug Spending Growth
- Health Plans Highlight Value of Medicare Advantage Special Needs Plans
- Care Improvement Plus Expands First Health Plan for Chronically Ill Medicare Beneficiaries Into Southern Maryland
- Care Improvement Plus Launches Texas' First Health Plan for Chronically Ill Medicare Beneficiaries
- Care Improvement Plus Launches One of Missouri's First Health Plans for Chronically Ill Medicare Beneficiaries
- Arta Announces Two New Health Plans for Orange County Medicare Beneficiaries
- Nine New Health Plans Enter the Texas Medicare Market, According to HealthLeaders-InterStudy
- Pretax Health Plans See Rapid Growth
- Health Plan Administrative Expense Growth Plummets
 |
 |
User Comments (1)
| 1. |
Posted by ross on 01/11/2007, 21:24 i have a report and i really need it soon.. my report is about health care cost. im a nursing student. |
RSS Feeds