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National Center for Policy Analysis Making Ideas Change the World Consumer-Driven Health Care Presentation to National Consumer-Driven Health Care Summit.

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Presentation on theme: "National Center for Policy Analysis Making Ideas Change the World Consumer-Driven Health Care Presentation to National Consumer-Driven Health Care Summit."— Presentation transcript:

1 National Center for Policy Analysis Making Ideas Change the World Consumer-Driven Health Care Presentation to National Consumer-Driven Health Care Summit by John C. Goodman September 13, 2006 National Center for Policy Analysis Making Ideas Change the World

2 National Center for Policy Analysis Making Ideas Change the World Understanding Health Care Red Queen Seven Dwarfs Little Red Riding Hood

3 National Center for Policy Analysis Making Ideas Change the World

4 National Center for Policy Analysis Making Ideas Change the World Government Health Care Spending as a Percent of Gross Domestic Product in 2050

5 National Center for Policy Analysis Making Ideas Change the World How The Medical Marketplace Works

6 National Center for Policy Analysis Making Ideas Change the World

7 National Center for Policy Analysis Making Ideas Change the World Why No Phone?

8 National Center for Policy Analysis Making Ideas Change the World Why No Email?

9 National Center for Policy Analysis Making Ideas Change the World Why No Computers?

10 National Center for Policy Analysis Making Ideas Change the World Why Not Better Drug Advice?

11 National Center for Policy Analysis Making Ideas Change the World Why No Patient Education?

12 National Center for Policy Analysis Making Ideas Change the World What is the Source of Every Major Problem?

13 National Center for Policy Analysis Making Ideas Change the World The Way We Pay Doctors

14 National Center for Policy Analysis Making Ideas Change the World Compare to Other Professionals Lawyers Lawyers Accountants Accountants Engineers Engineers Architects Architects Economists Economists

15 National Center for Policy Analysis Making Ideas Change the World How Are Doctors Paid? Third-Parties Set the Fees Third-Parties Set the Fees

16 National Center for Policy Analysis Making Ideas Change the World How Are Doctors Paid? Third-Parties Set the Fees Third-Parties Set the Fees Third-Parties Pay the Fees Third-Parties Pay the Fees

17 National Center for Policy Analysis Making Ideas Change the World Payment for Doctor Services 90% Third-Party Payers 10% Out-of- Pocket

18 National Center for Policy Analysis Making Ideas Change the World Rationing by Price vs. Rationing by Waiting

19 National Center for Policy Analysis Making Ideas Change the World How Much Waiting?

20 National Center for Policy Analysis Making Ideas Change the World U.S. Estimate: $60 Billion a Year

21 National Center for Policy Analysis Making Ideas Change the World Thought Experiment OTC Purchasers

22 National Center for Policy Analysis Making Ideas Change the World Principle: Health Care Can Be Free or Easily Accessible. But Not Both But Not Both

23 National Center for Policy Analysis Making Ideas Change the World How Are Doctors Paid? Third-Parties Set the Fees Third-Parties Set the Fees Third-Parties Pay the Fees Third-Parties Pay the Fees Third-Parties Pay by Task Third-Parties Pay by Task

24 National Center for Policy Analysis Making Ideas Change the World U.S. Medicare Tasks: 7,500

25 National Center for Policy Analysis Making Ideas Change the World What Difference Does This Make?

26 National Center for Policy Analysis Making Ideas Change the World Result No. 1: When Doctors Don’t Compete for Patients on the Basis of Price, They Don’t Compete at All

27 National Center for Policy Analysis Making Ideas Change the World Result No. 2: Gainers:Patients With Trivial Problems Losers:The Chronically Ill

28 National Center for Policy Analysis Making Ideas Change the World Unmet Needs: Potential Drug Use vs. Current System AsthmaObesityHigh Cholesterol Hyper- tension 200% 1000% 1200% 1500%

29 National Center for Policy Analysis Making Ideas Change the World Ideal Treatment of the Chronically Ill  Telephone  Email  Medical Records  Patients & Doctors Profit from Good Behavior

30 National Center for Policy Analysis Making Ideas Change the World Exceptions  Minute Clinics  TelaDoc  Concierge Doctors

31 National Center for Policy Analysis Making Ideas Change the World Can Health Savings Accounts Solve the Problem?

32 National Center for Policy Analysis Making Ideas Change the World Representative HSA Plan in the U.S. EXPENSE FREQUENCY INSURANCE HSA OUT-OF-POCKET...$2,000 …$1,500

33 National Center for Policy Analysis Making Ideas Change the World HSAs Are Grafted onto the Current Payment System Problem:

34 National Center for Policy Analysis Making Ideas Change the World Medical Inflation Medical Services All Goods Cosmetic Surgery

35 National Center for Policy Analysis Making Ideas Change the World Stages of Consumer-Driven Health Care Choosing Health Plans Choosing Health Plans

36 National Center for Policy Analysis Making Ideas Change the World Stages of Consumer-Driven Health Care Choosing Health Plans Choosing Health Plans Managing Health Care Dollars Managing Health Care Dollars

37 National Center for Policy Analysis Making Ideas Change the World Stages of Consumer-Driven Health Care Choosing Health Plans Choosing Health Plans Managing Health Care Dollars Managing Health Care Dollars Managing Health Care Managing Health Care

38 National Center for Policy Analysis Making Ideas Change the World

39 National Center for Policy Analysis Making Ideas Change the World Patients Managing Their Own Care Online Research Online Research

40 National Center for Policy Analysis Making Ideas Change the World Patients Managing Their Own Care Online Research Online Research Online Consultations Online Consultations

41 National Center for Policy Analysis Making Ideas Change the World Patients Managing Their Own Care Online Research Online Research Online Consultations Online Consultations Online Second Opinions Online Second Opinions

42 National Center for Policy Analysis Making Ideas Change the World Patients Managing Their Own Care Online Research Online Research Online Consultations Online Consultations Online Second Opinions Online Second Opinions Online Purchases Online Purchases

43 National Center for Policy Analysis Making Ideas Change the World Patients Managing Their Own Care Online Research Online Research Online Consultations Online Consultations Online Second Opinions Online Second Opinions Online Purchases Online Purchases Self-Monitoring Devices Self-Monitoring Devices

44 National Center for Policy Analysis Making Ideas Change the World Change the Way We Pay for Health Care Solution:

45 National Center for Policy Analysis Making Ideas Change the World National Center for Policy Analysis Making Ideas Change the World

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