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Rising costs are with us again...

Rising health-care costs are in the news again, following a period of stable premiums during the middle part of the 1990s  Only in the since 2000 have we returned to double-digit annual increases in costs. Unfortunately, there are no quick fixes for this problem: The factors driving these explosive cost increases are primarily long-term. However, the rise in premiums facing employers has outstripped the actual rise in health costs.  See "What's Really Wrong with Health Care? for details."

Rising health costs are a culprit in America's dilemma over the uninsured.  We have grown used to announcements each summer that the number of uninsured has risen based on the previous annual Current Population Survey conducted by the U.S. Bureau of the Census.

Strategies for Employers

In the face of rising costs employers are often caught in a dilemma: should they continue to purchase health benefits for their employees, cut the scope of benefits or abandon health benefits altogether.  The reasons for high and rising costs noted above are little comfort.  Answers to this question differ for large and small firms.  See "Bridging Cost and Quality.." for some long-term answers for Fortune-500 companies.  See also "Looking forward.." for similar analysis applied to benefits consulting firms.

Strategies for Communities

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Heath Systems and Economic Development: Rising costs pose a different dilemma for local and regional economic development planning.  Is the health sector an issue to avoid or promote when seeking for or responding to potential new employers?   Can communities get a "handle" on what their local system costs and why?  How does the local system compare to competing regions? Can a community form a set of goals around their health care system that would be attractive to a potential employer?  See "Local Health Systems and Economic Development."

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Unleashing Volunteer Resources in Health Care: Health care is full of "penny-wise, pound-foolish" relationships where timely preventive services can prevent increased acute costs later. The community bears the cost of preventable health services for persons who can't pay through higher taxes for public hospitals, or higher costs and private hospitals.  Programs in Indianapolis and in the State of Indiana have been initiated to address a piece of this problem through services provided by volunteers. See Relationships between local and state models and a "Logic Model" of  a local initiative.

 

 

 

 

 

 

 

 

 

 

 

 

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