🚨How do you reduce health spending?🚨
We are launching a new project - ‘1% Steps for Health Care Reform’. We're working with leading health policy scholars and the goal is harness research to illustrate tangible steps to reduce health care spending.

The core idea-if the US health system was a country, it’d be the 4th largest country in the world. There’s not 1 thing wrong in a system so big. There are lots of little problems that add up. We asked experts to identify discrete problems & propose reforms healthaffairs.org/do/10.1377/hbl…
The project (onepercentsteps.com) brings together an amazing group of scholars who are making concrete policy recommendations on steps to reduce health spending.

(all the authors even got an avatar...I think Jon Gruber's is most realistic).
onepercentsteps.com/authors/
All the briefs are aimed at policy makers and are accessible at: onepercentsteps.com/policy-briefs/
We wrote up a summary of the core idea underlying the 1% Steps for Health Care Reform project in a piece @Health_Affairs.
healthaffairs.org/do/10.1377/hbl…
We understand the allure of hoping for silver-bullet solutions to reform the US health system. There aren’t many country music songs written about incrementalism. Nevertheless, health economists owe it to the public to come up with tangible steps to reduce health care costs now.
The paper has 16 briefs written by an awesome collection of folks. They span a range of topics – antitrust, drug pricing, Medicare policy, Medicaid policy. Collectively the savings on offer would save hundreds of billions (9% health spending).

onepercentsteps.com/policy-briefs/
One percent of US health spending is about $30-40bn per year. We can get there with small changes I the health system. What could we get for a 1% savings? How about universal pre-k! newamerica.org/education-poli…
There’s awesome work by @JonSkinner17 on reducing health care fraud in home health. (When he was on home hospice, my father received 8 commodes so I can attest this is a real thing!).
onepercentsteps.com/policy-briefs/…
.@amitabhchandra2 discusses ways to reform the orphan drug act. onepercentsteps.com/policy-briefs/…
.@porszag and @rahulrekhi offer some wiring changes to claims adjudication that would save billions. onepercentsteps.com/policy-briefs/…
I was blown away by the savings from increasing kidney donations. Small that ramped up kidney donations would reduce Medicare spending by nearly a percent.
onepercentsteps.com/policy-briefs/…

onepercentsteps.com/policy-briefs/…
Historically, it's been easy for folks to dunk on what doesn't work. The challenge we posed to the authors was to describe what would reduce health spending and to write it down. We got discrete recommendations that add up to big savings.
Over the next few days, I'll try and tweet out all the amazing briefs. Hugely grateful to @Arnold_Ventures who made this work possible. The project isn't what academics usually do but we hope it makes a difference.
Perhaps most importantly, we want to hear your ideas and to keep posting discrete policies based on evidence. Send on your ideas for evidence based interventions to reduce health spending

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More from @zackcooperYale

10 Feb
🚨New Paper Alert (actually, old paper that just got published, but hey)🚨

@Michael_Chernew @ProfFionasm Columbia PhD student Eugene Larsen-Hallock and I examine whether health care is 'shoppable' by looking at how patients consume lower-limb MRI scans.
sciencedirect.com/science/articl…
This dovetails nicely with paper out by @amitabhchandra2 and @oziadias earlier this week. Predictions from price theory are that if you ratchet up cost-sharing and give patients transparency tools, they'll consume health care services they way they consume peppers.
A bunch of work shows that this just isn't the case. We were interested in why patients tend not to price shop.

Focusing on how patients consume planned lower-limb MRIs is a useful setting because this is really a pure commodity with (as we show), no quality variation.
Read 18 tweets
12 Dec 20
Big news on surprise billing .

There's a bicameral agreement on addressing surprise billing.

Overall, this isn't what I would have done, but arbitration linked to in-network payments isn't crazy.

A thread with a summary + initial thoughts: 1/n

energycommerce.house.gov/sites/democrat…
The bipartisan proposal includes a hold harmless provision that requires patients, if treated by an out-of-network doctor at an in-network facility, only be subject to in-network cost-sharing & no balance billing (eg MDs/staffing companies can't go after them for charges). 2/n
Providers & insurers have a 30-day window to negotiate over out-of-network bills. If they fail to reach an agreement, bills go to baseball rules arbitration: one bid from payers, one bid from MDs. Program is administered by independent entity without MD/insurer affiliation. 3/n
Read 13 tweets
10 Jul 20
New @politico op-ed by @stevenberry + me. We argue that Congress is grossly underfunding efforts to combat Covid-19 & that White House's wish it away strategy won't work. We need humility - we don't know what will work, so we should fund redundant programs politico.com/news/agenda/20…
Less than 8 percent of the trillions in funding that Congress has allocated so far in response to the virus has been for solutions that would shorten or mitigate the virus itself: increasing the supply of PPE, expanding testing, developing treatments, vaccine development.
In the face of competing proposals, our suggestion is to do all of them. Nobody knows what will work best, or work at all, or in what time frame. Our relative inaction seems predicated on the idea that we will have an effective vaccine in 12 months. What if it takes three years?
Read 10 tweets
12 Jun 20
.@ACEPNow pro ports to represent ED physicians. They trade on the good will of hardworking physicians but seem to be really benefitting EmCare and TeamHealth. In fact, as reporting by @sangerkatz @ReedAbelson and others show, they are actually working with the PE firms on comms
See this great piece in the @UpshotNYT that identified the PE firms and ED physician staffing companies behind the tsunami of political ads on surprise billing. nytimes.com/2019/09/13/ups…
We all should have profound respect & appreciation for ED docs. Nothing makes this more clear than the pandemic. However, it enrages and saddens me to see leaders of ACEP and firms like EmCare + TeamHealth tradeoff that goodwill in an effort to make profits for their investors
Read 4 tweets
12 Apr 20
🚨 To better advise some policy-makers we’re speaking with, what do we view as the key barriers to scaling up testing and strategies to overcome them. See thread below. Figured public sourcing would be helpful here.
@ScottGottliebMD @paulmromer @steventberry @erikbryn
The returns to testing are MASSIVE. @ATabarrok has written about this. This is @Austan_Goolsbee first rule of virus Econ. If we assume daily costs of shutdown are in $billions, we should be spending huge amounts (100s of billions) to speed reopening marginalrevolution.com/marginalrevolu…
One constraint a la @paulmromer might be regulatory - e.g. FDA says you need to use swab x even though unapproved swab Y is nearly a perfect substitute
Read 13 tweets
8 Feb 20
A big day of surprise billing proposals from the Hill yesterday. Below is a thread on the different options proposed by ED and Labor and Ways and Means, the trade-offs between arbitration and benchmarking, and possible ways to reconcile the ED+Labor and the Ways and Means plans
The Ways&Means plan includes a hold harmless proposal + arbitration where the arbitration is linked to in-network payments and there’s no cap on size of bills that go to arb.

ED & Labor has a hold harmless and uses benchmarks for bills < $750 and arbitration for bills > $750
Both are sensible proposals, but both have different trade offs. They represent different approaches to addressing the same issue.
Read 11 tweets

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