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Bending the Curve: Effective Steps to Address Long-Term Health Care Spending Growth

Joseph Antos,
Joseph Antos Wilson H. Taylor Scholar in Health Care and Retirement Policy, American Enterprise Institute
Dana Goldman, Mark Pauly,
MP
Mark Pauly Bendheim Professor of Health Care Systems, University of Pennsylvania
, Stephen Shortell,
SS
Stephen Shortell
Mark B. McClellan,
Mark B. McClellan Former Brookings Expert, Director, Margolis Center for Health Policy - Duke University
Elizabeth McGlynn,
EM
Elizabeth McGlynn
John Bertko,
JB
John Bertko Chief Actuary - Covered California
Michael E. Chernew, and David M. Cutler
(Cambridge, MA.--Monday, July 28, 2003)   David M. Cutler is Professor of Economics, Associate Dean of the Faculty of Arts and Sciences and John L. Loeb Professor of Social Sciences.  Staff Photo by Rose Lincoln/Harvard University News Office
David M. Cutler Otto Eckstein Professor of Applied Economics - Harvard University

September 1, 2009

With the President, members of Congress, and key stakeholders seeking aggressive reforms to slow spending growth while improving value, a group of 10 health care policy experts today released a set of concrete, feasible steps that could achieve this goal. The plan, “Bending the Curve: Effective Steps to Address Long-Term Health Care Spending Growth,” focuses on reducing the growth of health care spending, while also improving quality.

The proposal starts from the conclusion that the standard short-term measures to address rising costs, like reducing prices, are not sufficient to succeed. Instead, legislation must support necessary changes and improvements in health care by reforming payment systems, regulations, and institutions that currently prevent patients from consistently getting the best quality care at the lowest cost.

This strategy consists of four interrelated pillars. First, as a foundation for improving value, all stakeholders in the system need better information and tools to be more effective. Second, provider payments should be redirected toward rewarding improvements in quality and reductions in cost growth, providing support for health care delivery reforms that save money while emphasizing disease prevention and better coordination of care. Third, health insurance markets should be reformed and government subsidies restructured to create competition and improve incentives around value improvement rather than risk selection. This step requires near-universal participation in insurance markets to succeed. Finally, individual patients should be given greater support for improving their health and lowering overall health care costs, including incentives for achieving measurable health goals.

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