The Health Care Spending Dilemma

The Health Care Spending Dilemma

[Narrator] https://theliaxa.com/ In 1997, Minnesota spent $15 billion

on healthcare and family premiums for health insurance

were about $5,000 per year.

Nearly 20 years later,

overall spending tripled

with families spending over $18,000 a year on premiums

and the state spending $47 billion.

Take a look at this chart

because it illustrates the real pain of our current path.

More and more of the dollars available on our state

and our personal budgets are getting eaten up by healthcare

and it keeps growing faster than everything else

without regard for other prices https://theliaxa.com/

like housing and transportation.

You personally may have felt this trend

like a rubber band that’s getting harder to stretch.

Maybe you feel it in your increasing deductibles

or monthly premiums.

It seems like your policy is covering less

for the same price

or maybe you feel it in the way added expense are gobbling

any raises or bonuses you might have landed in the past.

And with all the dollars we’re putting towards healthcare,

everyone in our state still can’t afford it.

But it’s not as if a lot of smart people

haven’t been trying to innovate.

In the last 40 years, we’ve attempted all sorts of things.

With managed care in the ’80s and ’90s,

patients didn’t like how their choices

of which doctor to see and when was limited

and they pushed back.

Health plan spending limits,

they were pulled back Health Care

because they didn’t seem to constrain spending.

Our first attempt at electronic medical records

just didn’t reduce cost as much as we had hoped.

Improved access to quality and cost information,

it does not yet seem to drive substantive changes.

Here are some of the factors

we know can push us over the edge.

Healthcare prices rise faster than our economy grows.

New technologies in healthcare more often increase cost

rather than save money.

Administrative costs really add up.

More of us at all ages develop chronic diseases.

Many of us live in places that make it hard to be healthy.

There are lots of mergers in the healthcare industry,

meaning there’s less competition to help reduce prices.

And that’s just some of them.

There is no one factor

that is causing healthcare spending to grow like this.

Of course, we could just let healthcare spending

continue to grow. Health Care

By 2026, we’d be looking at spending $95 billion

on healthcare in our state

with family premiums reaching $35,000 per family.

We’ll be spending $30 billion on hospitals

and spending on Medicaid and Medicare

will be twice as high as it is now $40 billion.

Of course, we could all get together

and try to get these costs under control now.

With so many different things impacting spending,

it won’t be simple.

For starters, we’ll need to

understand we need more than one solution

because there isn’t a silver bullet.

Start investing in what keeps us healthy

including public health and social supports,

not just what tries to fix us when we’re broken.

Make sure the changes we do make

are backed up with good data

about what actually reduce costs.

Be serious about trying out new ideas

even if they create winners and losers.

Most of us probably don’t expect to be making

twice as much money in 10 years as we are today.

And if our incomes and state budgets

can’t keep up with growing healthcare costs,

what are we going to be missing out on?

How far can that rubber band stretch before it breaks?

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