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Consumer-Driven Health Care Presentation to National Consumer-Driven Health Care Summit by John C. Goodman September 13

Consumer-Driven Health Care Presentation to National Consumer-Driven Health Care Summit by John C. Goodman September 13, 2006. National Center for Policy Analysis Making Ideas Change the World. Understanding Health Care. Red Queen Seven Dwarfs Little Red Riding Hood.

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Consumer-Driven Health Care Presentation to National Consumer-Driven Health Care Summit by John C. Goodman September 13

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  1. Consumer-Driven Health CarePresentation toNational Consumer-Driven Health Care SummitbyJohn C. Goodman September 13, 2006 National Center for Policy Analysis Making Ideas Change the World

  2. Understanding Health Care Red Queen Seven Dwarfs Little Red Riding Hood

  3. Government Health Care Spending as a Percent of Gross Domestic Product in 2050

  4. How The Medical Marketplace Works

  5. Why No Phone?

  6. Why No Email?

  7. Why No Computers?

  8. Why Not Better Drug Advice?

  9. Why No Patient Education?

  10. What is the Source of Every Major Problem?

  11. The Way We Pay Doctors

  12. Compare to Other Professionals • Lawyers • Accountants • Engineers • Architects • Economists

  13. How Are Doctors Paid? • Third-Parties Set the Fees

  14. How Are Doctors Paid? • Third-Parties Set the Fees • Third-Parties Pay the Fees

  15. Payment for Doctor Services 90% Third-Party Payers 10% Out-of-Pocket

  16. Rationing by Price vs. Rationing by Waiting

  17. How Much Waiting?

  18. U.S. Estimate:$60 Billion a Year

  19. Thought Experiment OTC Purchasers

  20. Principle: Health Care Can Be Free or Easily Accessible. But Not Both

  21. How Are Doctors Paid? • Third-Parties Set the Fees • Third-Parties Pay the Fees • Third-Parties Pay by Task

  22. U.S. Medicare Tasks:7,500

  23. What Difference Does This Make?

  24. Result No. 1: When Doctors Don’t Compete for Patients on the Basis of Price, They Don’t Compete at All

  25. Result No. 2: Gainers: Patients With Trivial Problems Losers: The Chronically Ill

  26. Unmet Needs: Potential Drug Use vs. Current System 1500% 1200% 1000% 200% Asthma Obesity High Cholesterol Hyper-tension

  27. Ideal Treatment of the Chronically Ill • Telephone • Email • Medical Records • Patients & Doctors Profit from Good Behavior

  28. Exceptions • Minute Clinics • TelaDoc • Concierge Doctors

  29. Can Health Savings Accounts Solve the Problem?

  30. Representative HSA Plan in the U.S. INSURANCE ...$2,000 EXPENSE OUT-OF-POCKET …$1,500 HSA FREQUENCY

  31. Problem: HSAs Are Grafted onto the Current Payment System

  32. Medical Inflation Medical Services All Goods Cosmetic Surgery

  33. Stages of Consumer-Driven Health Care • Choosing Health Plans

  34. Stages of Consumer-Driven Health Care • Choosing Health Plans • Managing Health Care Dollars

  35. Stages of Consumer-Driven Health Care • Choosing Health Plans • Managing Health Care Dollars • Managing Health Care

  36. Patients Managing Their Own Care • Online Research

  37. Patients Managing Their Own Care • Online Research • Online Consultations

  38. Patients Managing Their Own Care • Online Research • Online Consultations • Online Second Opinions

  39. Patients Managing Their Own Care • Online Research • Online Consultations • Online Second Opinions • Online Purchases

  40. Patients Managing Their Own Care • Online Research • Online Consultations • Online Second Opinions • Online Purchases • Self-Monitoring Devices

  41. Solution: Change the Way We Pay for Health Care

  42. National Center for Policy Analysis Making Ideas Change the World

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