• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Galen Institute

  • Home
  • About Us
    • Mission and History
    • Grace-Marie Turner bio
    • Who was Galen?
  • Activities
    • Core Activities
    • Commentary and Oped Tutorial
    • Our Book
    • Galen Guides
  • Contact Us
  • Major Papers
  • Broadcast Interviews
  • Health Policy Consensus Group

The Value of Innovation in Health Care

POSTED BY Galen Institute on January 13, 2009.

Executive Summary

During much of this decade, the climate in the health sector has been largely favorable to market-based policies, supporting innovation, competition, market pricing, and consumer choice.

But the United States is at a crossroads in the policy debate where most of the proposals being offered by political leaders in Washington would exert much more government control over our health sector, forcing the private health sector to operate under the same rule-driven, price-fixed, benefit-restricted dictates as the public sector.

Before we embark on this course, it would be wise to review what innovation has brought us and to assess whether we are ready to cast it aside to put much more control in the hands of government.

Market-friendly changes in public policy and countless innovations from the private sector have helped to moderate the rise in health insurance cost, create new models for care delivery and financing, and support the movement toward patient-centered health care.

Health Savings Accounts and the competitive Medicare drug benefit are the changes that made the headlines during the Bush administration, but innovations in care delivery, creative benefit offerings by health plans and employers, reduced prescription drug spending, and innovations in other public programs are all part of the story.

These changes have helped to keep the increase in U.S. health spending at 6.1 percent in 2007. Employers who were early adopters of consumer-directed plans have seen their premiums increase at an even lower rate of 2.6 percent.

While many problems await the Obama administration and many changes still must be made in public policy, it is vital to respect the genius of a market in responding to the demands of consumers for better quality care at more affordable prices through efficiency and innovation.

As the decade of 2000 proves, competition works, even in health care.

 

Filed Under: Uncategorized

The Value of Innovation in Health Care

POSTED BY Galen Institute on January 13, 2009.

Executive Summary

During much of this decade, the climate in the health sector has been largely favorable to market-based policies, supporting innovation, competition, market pricing, and consumer choice.

But the United States is at a crossroads in the policy debate where most of the proposals being offered by political leaders in Washington would exert much more government control over our health sector, forcing the private health sector to operate under the same rule-driven, price-fixed, benefit-restricted dictates as the public sector.

Before we embark on this course, it would be wise to review what innovation has brought us and to assess whether we are ready to cast it aside to put much more control in the hands of government.

Market-friendly changes in public policy and countless innovations from the private sector have helped to moderate the rise in health insurance cost, create new models for care delivery and financing, and support the movement toward patient-centered health care.

Health Savings Accounts and the competitive Medicare drug benefit are the changes that made the headlines during the Bush administration, but innovations in care delivery, creative benefit offerings by health plans and employers, reduced prescription drug spending, and innovations in other public programs are all part of the story.

These changes have helped to keep the increase in U.S. health spending at 6.1 percent in 2007. Employers who were early adopters of consumer-directed plans have seen their premiums increase at an even lower rate of 2.6 percent.

While many problems await the Obama administration and many changes still must be made in public policy, it is vital to respect the genius of a market in responding to the demands of consumers for better quality care at more affordable prices through efficiency and innovation.

As the decade of 2000 proves, competition works, even in health care.

 

Filed Under: Uncategorized

Primary Sidebar

Our Annual Report

Health Care Choices 20/20:

A Vision for the Future

SEARCH

Categories

  • Brian Blase
  • Consumer-Directed Care
  • Doug Badger
  • Grace-Marie Turner
  • Health Insurance
  • Health Policy Consensus Group
  • Health Savings Accounts
  • Innovation
  • Medicaid
  • Medicare
  • Newsletter
  • ObamaCare
  • Prescription Drugs
  • Published
    • Forbes
    • Fox Business
    • Health Affairs
    • LA Times
    • National Review
    • New York Post
    • RealClearHealth
    • Sun Sentinel
    • The Daily Signal
    • The Heritage Foundation
    • The Hill
    • The New York Times
    • The Wall Street Journal
    • The Washington Times
  • Reform Initiatives
  • State Issues
  • Uncategorized

LATEST NEWSLETTER ISSUES

SUBSCRIBE

Social Media

Like Us On Facebook

Twitter: @galeninstitute

 

Copyright Galen Institute at Donors. © 2023; · Log in