4: HEALTH CARE Other Information:
IMPROVING HEALTH CARE -- The rapid growth in health care costs is the largest and fastest growing fiscal challenge. More than
one out of every four federal program dollars goes to health care. By 2040, 44 percent of projected federal spending will
be used for the largest programs—Medicare, Medicaid, and new subsidies to help people buy insurance. The federal government
provides health insurance to nearly 100 million people, over 30 percent of the U.S. population, through Medicare, Medicaid
and other smaller programs. Enrollees in federal programs tend to be the most costly—they are older, have greater health care
needs, have low incomes, and have less access to primary and preventive care. As the baby boom generation ages, the Medicare
population will grow by 70 percent by 2030. Many baby boomers will turn to Medicaid for financial help with long-term care
expenses. As a result, the federal budget will be placed under increasing pressure as the number of beneficiaries increases
and health care costs grow rapidly, as projected. There is clear evidence that our health care system needs improvement. The
U.S. spends twice as much per person on health care than most other countries, but our results are no better. Within the United
States, some regions spend twice as much per person than other regions, without a clear difference in results. Approximately
30 percent of Medicare spending takes place within the last year or life, and over 75 percent of health care spending goes
toward patients with chronic diseases. Some of the most expensive chronic diseases are heart disease, diabetes, and hypertension—all
three of which are tied to obesity, a common problem in the U.S. For many years, health care has consistently grown faster
than our economy. The rapid growth in health care costs has placed a huge burden on families, businesses and the federal government.
If we don't implement some budgetary restraint on the health care system, health care costs will lead to more and more borrowing
and leave fewer resources for our economy and our daily lives. In order to address this important component of our fiscal
challenge, we need to lower projected health care spending and slow the growth in these costs. However, we all want to maintain
high quality of care for Americans and avoid making changes that would result in poorer health. Therefore, we need to get
more "value for our money" in healthcare -- spending less, while achieving better health outcomes. Organizations like the
Mayo Clinic have shown that a well-coordinated medical system can deliver high quality health care in the U.S. for a relatively
low price. It may be difficult to duplicate the success of the Mayo Clinic across the nation, but it offers a preview of what
is possible. Options to improve our healthcare system include: developing best practices, promoting wellness, focusing on
patient outcomes rather than just tests, reforming medical malpractice laws, and using technology to improve efficiency.
Stakeholder(s):
- Mayo Clinic
- Americans
- Baby Boom Generation
Objective(s):
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