The Next Stage of Health Care Reform: Controlling Costs by Paying Health Plans Based on Health Outcomes

40 Pages Posted: 30 Jul 2010 Last revised: 17 Apr 2011

See all articles by Dale B. Thompson

Dale B. Thompson

University of St. Thomas - Department of Ethics & Business Law

Date Written: July 26, 2010

Abstract

The predominant form of paying for health care in the United States (Fee-for-Service) creates inefficient incentives and leads to rising costs. A number of changes were incorporated into the health care reform legislative package of 2010, but these changes will not stop rising costs. Instead, this article proposes that the reimbursement structure for the Medicare Advantage program be revised so that medical plans receive their payments based on delivery of health outcomes, not delivery of health services. This approach utilizes centralized enforcement at the level of the plan, to provide incentives for the plan to encourage its providers to improve health outcomes.

Keywords: Health Care Reform, Medicare Advantage, Health Outcomes, Federalism

JEL Classification: I18, H51, K32

Suggested Citation

Thompson, Dale B., The Next Stage of Health Care Reform: Controlling Costs by Paying Health Plans Based on Health Outcomes (July 26, 2010). Akron Law Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1650415

Dale B. Thompson (Contact Author)

University of St. Thomas - Department of Ethics & Business Law ( email )

Opus College of Business
MCH 316
St. Paul, MN 55105
United States
651-962-5195 (Phone)

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