We face an economic and humanitarian imperative to reform health care in our state because too many people lack health
insurance, costs are escalating rapidly, incentives are misaligned, and the system is
unfair. These problems are linked and cannot be addressed in isolation, but rather must be solved comprehensively. If not, the broken and unsustainable system will ultimately threaten our economic competitiveness as a state and nation.
We favor urgent action because the Bush Administration has provided a window of opportunity for state-based reforms. There is no guarantee that future administrations will allow states to serve as laboratories for reform. Instead, we will likely face a mandated government system that takes away state flexibility and perpetuates many of today’s problems.
Your input is a vital part of this process. Even
if we do not act locally, bold measures will be taken. It is up to us to
take the initiative to make sure that these measures reflect Utah's realities, needs,
and values.
________________
Leading
the Way in Health System Reform
by Lane Beattie, President & CEO, Salt Lake Chamber
Health care policy affects us right where it counts: the well-being of ourselves and our loved ones. We need high quality and affordable health care to keep our economy strong and to respond to the very real human needs that exist in our community. That is why the Salt Lake Chamber has chosen health system reform as one of our top public policy priority this year.
Health care currently comprises 16% of our nation’s gross domestic product. At the tail end of the baby boom, health care made up just 5.2% of the national economy. In these roughly 45 years, the system has become increasingly complex, unfair, irrational and problematic. It won’t be long before the skyrocketing costs, misplaced incentives and poor outcomes cripple economic performance.
In just the last ten years, median household income in Utah has grown by 15%, while family health insurance premiums in Utah grew by 109%. This type of imbalance is unsustainable. Even last year, health care premium increases were twice that of earnings and more than twice that of inflation. Businesses simply cannot continue to provide health insurance with these kinds of price shocks.
Incentives at all levels of our system promote behaviors that drive up overall utilization and costs – often without adding medical value. Since health care costs are often unknown, unavailable or subsidized, patients and providers do not make decisions based on value. The consumer is left without information to make informed decisions about their care. Doctors over-prescribe care to avoid frivolous lawsuits. The result … you guessed it … a mammoth health care industry that
consumes one in every six dollars in the American economy.
The excessive utilization of health care is well documented. For instance, the National Imaging Association’s own audit concluded that 40% of diagnostic imaging, such as MRIs, is inappropriate and non-contributory.
Because of these problems, more families are losing the financial security and positive health outcomes from having insurance. An alarming
300,000 to 400,000 Utahns lack health insurance. Approximately 90,000 of these are children. Everyday these Utahns risk financial ruin due to an unexpected health episode. The peace of mind that comes with having essential insurance coverage is replaced by anxiety and stress.
Utah can do better than this.
The Salt Lake Chamber supports sensible, business-minded solutions to Utah’s troubled health system. We have a window of opportunity to act while the Bush Administration and Secretary Mike Leavitt are providing Medicaid flexibility that will support innovative state reforms. Best of all, we can control our own destiny by acting as a state to fix our system before the federal government tries to compel a government-run system.
I welcome your comments on health system reform
- Lane Beattie
Learn more about the process and
proposals for Health Care System Reform in Utah:
Leading
the Way in Health System Reform
