RISING MEDICAL COSTS What’s going on?

Objectives  Understand reasons behind insurance rate hikes  Things individuals can do to bring costs down  Stump the chump  Q/A  Hire Marcelo Jimenez

Just The Facts  6.7% and $2.1 Trillion in 2006  $7,026 per person  16% of GDP  6.7% growth per year  What does that mean for 2017?  U.S. Investment vs GDP  2.5 times that of other industrialized nations

Key Drivers  Demand  New technology  Chronic disease  Fee-for-service practice model  Uninsured and underinsured

Demand  Cost unconscious  Neglect for cost efficient choices Dr. A vs Dr. B Brand vs generic

New Technology  Extensively used  “Faith”  I want it

Chronic Disease  2005 = 133 Million  Medical Advances  Aging population  Obesity and bad diet

Fee-for-services Practice  Fragmented and uncoordinated  Hospitals, clinics, primary care and specialist physicians, and drug and medical device manufacturers.  Encourages duplication  Poorly organized  Information technology in the back seat

Uninsured and Underinsured  Medi-Cal and Medicaid  Cost difference pushed to premium  Emergency clinic and hospital services

What can I do?  Preventative care  Stay within your network  Retail pharmacy program