State & Local Governments

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State & Local Governments Net Impact of Path Recommendations on National Health Expenditures Compared with Current Projection, 2010–2020 (in billions) Total NHE Private Employers State & Local Governments Households Federal Budget Total Payment Reforms –$1,010 –$170 –$10 –$82 –$749 Enhanced payment for primary care –$71 –$28 –$2 –$11 –$30 Encouraged adoption of Medical Home model –$175 –$25 –$13 –$36 –$101 Bundled payment for acute care episodes –$301 –$75 –$4 –$211 Correcting price signals High-cost area updates –$223 –$64 –$3 –$29 –$127 Prescription drugs –$76 +$22 +$12 +$5 –$115 Medicare Advantage –$165 $0 Data: Estimates by The Lewin Group for The Commonwealth Fund. Source: The Lewin Group, The Path to a High Performance U.S. Health System: Technical Documentation (Washington, D.C.: The Lewin Group, 2009).