Countries That Use All-Payer Rate Setting Spend Less Than Us on Health Care
By Igor Volsky
Over at the Incidental Economist, John Nyman, professor of health policy and management at the University of Minnesota School of Public Health, expands on this suggestion that policy makers should look at Maryland as an example of how all-payer rate setting — in which payers negotiate with each provider for a single price for each service — can help reduce health care spending. Nyman places U.S. health care spending in an international context and argues that “you have a strong argument for a causal relationship” between rate-setting and lower spending:
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http://thinkprogress.org/health/2011/07/21/275055/all-payer-rate-settings-spend-less/
Expect these numbers to drop drastically for the U.S. now that the country is facing a grave debt crisis. Health care will probably take a major blow in the development of things.
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We also have to consider that health care costs vary per country. I wonder how this table will look like with differing price rates put into play.
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The US has to step it up if it ever hopes to be competitive in the health care industry. There are so many loopholes that can be easily fixed with the right policies.
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