Source: National Association of Health Underwriters Education Foundation State of U.S. Healthcare 1.

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Presentation transcript:

Source: National Association of Health Underwriters Education Foundation State of U.S. Healthcare 1

Source: National Association of Health Underwriters Education Foundation Projected 2024 U.S. healthcare spending = $5.46 trillion, 19.6% GDP Healthcare Costs & the Economy 2

Source: National Association of Health Underwriters Education Foundation Up, Up and Away: U.S. Healthcare Spending Projections 3 Centers for Medicare and Medicaid Services

Source: National Association of Health Underwriters Education Foundation Employers paid 58% of employees’ healthcare costs in ‣ A typical family of four has $23,215 in medical costs each year ‣ Employer pays $13,520 ‣ Employee pays $9,695 ‣ ($5,908 in payroll deductions and $3,787 in out-of-pocket costs.) Employers Foot the Bill 4

Source: National Association of Health Underwriters Education Foundation ‣ There is no single driver responsible for the nation’s high and rising healthcare costs. ‣ There is no single strategy to meet this challenge. What Is Driving Healthcare Costs? 5

Source: National Association of Health Underwriters Education Foundation ‣ Fee-for-service reimbursement ‣ Fragmentation in care delivery ‣ Administrative burden ‣ Population aging, rising rates of chronic disease and co-morbidities ‣ Advances in medical technology ‣ Lack of transparency about cost, quality ‣ Tax treatment of health insurance ‣ Insurance benefit design ‣ Cultural biases influencing care utilization ‣ Healthcare market consolidation ‣ High unit prices of medical services ‣ The health care legal and regulatory environment ‣ Structure and supply of the health professional workforce What Is Driving Healthcare Costs? 6

Source: National Association of Health Underwriters Education Foundation Chronic Disease Drives Healthcare Spending U.S. Healthcare Spending by Number of Chronic Conditions in

Source: National Association of Health Underwriters Education Foundation Quality Varies Widely There is a radical difference in potentially avoidable hospitalization rates across the country 8

Source: National Association of Health Underwriters Education Foundation Price Varies Widely 9

Source: National Association of Health Underwriters Education Foundation Price for service in the U.S. can vary as much as600% Price Varies Widely 10

Source: National Association of Health Underwriters Education Foundation Price Varies Widely: Massachusetts Hospitals 11