With inflation rising to its highest level since 1982, health care executives and advocates joined Governor Phil Murphy on Tuesday to curb rising health care costs and increase by less than 3% annually by 2027. We have made a six-year commitment to maintain the rate. ..
Leaders from two of the state’s major health insurance companies and six hospital systems have signed a “compact” that declares their intention to work with the state to “take action to make health care more affordable.” ..
The first step is a program to collect data on the medical costs of all Medicare, Medicaid, or private insurance insureds, such as insurance payments and consumer out-of-pocket costs. By analyzing all that information, you can identify the actual rate of increase and its causes, and plan efforts to control it.
“We make the cost of healthcare and the associated increase look like a typical increase in a gallon of milk or a loaf of bread,” Murphy evokes the image of a family sitting around the kitchen. I did. A table thinking about their living expenses.
He said the rise in health care costs each year far outweighs the rise in prices paid for food, gas, housing and other necessities. “Once we have the data, let’s make medical expenses more like the increases seen in other parts of life,” Murphy said.
In doing so, he positioned the quirky and confusing health policy initiative as a “kitchen table problem” that directly impacts consumer notebooks. And after defeating Republican Jack Ciattarelli in a slight reelection in November, he continued to adhere to his stated goal of “needing to be at more kitchen tables.”
According to a government-cited study, New Jersey health insurance premiums and deductions increased about three times faster than residents’ income between 2010 and 2016, with premiums at median household income in 2016. It was almost one-third. Adults in New Jersey, surveyed in May 2020, said they were worried about future payments for health care.
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According to Murphy, the pandemic shows how important it is for everyone to have access to affordable, equitable and quality medical care.
Nationally, health care costs increased 9.7% last year, “not acceptable and unsustainable,” said Ward Sanders, chairman of the New Jersey Health Planning Association, which represents the insurance industry. The overall inflation rate was 7.2%.
There is no central repository of information about how much everyone pays for medical care in New Jersey. Whether it is uninsured or insured by small businesses, unions, large corporations, or government programs such as Medicare, Medicaid, and state health benefit programs.
Rising costs for prescription drugs and hospitalization are considered to be the main contributors to cost inflation, but it is not clear which factor is most important.
“Understanding the factors behind these unsustainable cost increases is the first step in making healthcare affordable,” Murphy said. A better understanding of the problems will allow you to develop specific strategies to combat them. On Tuesday, he signed an executive order to create a New Jersey Healthcare Cost Growth Benchmark Program.
Data will be published showing how well the different sectors are working to meet the benchmark. The sector includes insurance markets such as Medicaid, Medicare and commercial insurance companies. Individual insurance companies; large provider groups, and state-wide.
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The six-year plan announced on Tuesday describes 2022 as the transition year and data will be collected and analyzed. Benchmarks or shared goals will then be identified and medical spending growth will not exceed 3.5% in 2023, 3.2% in 2024, 3.0% in 2025 and 2.8% in 2026.
However, compactness among various medical industry leaders is optional and does not include enforcement mechanisms.
It was signed by the Horizon Blue Cross Blue Shield and Ameri Health in New Jersey, and the CEO of the New Jersey Health Insurance Association. RWJBarnabas Health, Hackensack Meridian Health, Atlantic Health System, Virtua Health, St. The leader of Joseph’s Health also signed with the New Jersey Hospital Association.
The Governor’s Office of Health Care Affordability and Transparency, led by Shabnam Salih, is responsible for the Banking Insurance Department’s efforts.
Other states have similar programs. They include Massachusetts, Oregon, Rhode Island, Connecticut, Delaware, and Washington. Massachusetts has the longest history. When the medical system is integrated, it is required that the future cost of the integrated entity should not exceed a specific benchmark. If not exceeded, the medical system faces a penalty.
Lindy Washburn is a Senior Healthcare Reporter at NorthJersey.com. Subscribe or activate your digital account today to stay up to date on how health care changes affect you and your family.
Email: washburn@northjersey.com
twitter: @lindywa
