I mentioned earlier my belief that limiting medical malpractice liability won’t do much to drive down the cost of health care. So, what will? My favorite health care futurist — ok, the *only* health care futurist I know — Joe Flower, has a list. Click through the link for the narrative, but the list is as follows:
1. Single payer.
2. “Robust” public option.
3. Limiting medical loss ratios.
4. Negotiating drug prices.
5. Bundling.
6. Publishing outcomes.
7. Publishing prices.
8. Banning discounts.
9. Giving a premium to integrated “accountable care organizations.”
10. Increasing subsidies for digitization, tied to productivity improvements.
11. Subsidizing automation.
12. Standardization and checklists.
13. Warranties.
The issue of “medical loss” is one that really captures my attention. It has to do with what percentage of health insurance premium dollars actually go toward providing health care. A high percentage suggests an efficient health care system and a low percentage suggests an inefficient system. Flower has this to say about medical loss in the U.S. versus Europe:
Many European countries dictate that health plans must return 85% or 90% or 92.5% of the premium paid in as medical services paid out. U.S. health plans, in contrast, compete on (and brag to Wall Street analysts about) how low their medical loss ratio is. Some are as low as 60%.