Medicare Lacks Cost Consistency

The cost of treating medical conditions for Medicare patients varies significantly, according to a study by a Center for Studying Health System Change (HSC). Most communities are relatively expensive in the treatment of some conditions and inexpensive in the treatment of others.

Industry observers have suggested that Medicare could reduce spending by as much as 30% if all providers adopted the same treatment patterns that are found in low-cost areas But the study indicates that patterns of geographic variation are far more complex. Researchers found that treatment costs for 10 medical conditions, including heart disease and bacterial lung infections, varied a great deal across communities. However, patterns of geographic cost variation were not consistent across conditions.

The health of the general population appears to be a much more important cost driver. In areas with high costs, the population tends to be sicker. Payment reform initiatives, such as patient-centered medical homes and accountable care organizations, may need to adopt flexible approaches to address local conditions and treatment patterns. For more information, visit www.hschange.com.

Last Updated 09/23/2020

Arch Apple Financial Services | Individual & Family Health Plans, Affordable Care California, Group Medical Insurance, California Health Insurance Exchange Marketplace, Medicare Supplements, HMO & PPO Health Care Plans, Long Term Care & Disability Insurance, Life Insurance, Dental Insurance, Vision Insurance, Employee Benefits, Affordable Care Act Assistance, Health Benefits Exchange, Buy Health Insurance, Health Care Reform Plans, Insurance Agency, Westminster, Costa Mesa, Huntington Beach, Fountain Valley, Irvine, Santa Ana, Tustin, Aliso Viejo, Laguna Hills, Laguna Beach, Laguna Woods, Long Beach, Orange, Tustin Foothills, Seal Beach, Anaheim, Newport Beach, Yorba Linda, Placentia, Brea, La Habra, Orange County CA

12312 Pentagon Street - Garden Grove, CA 92841-3327 - Tel: 714.638.0853 - 800.731.2590
Email:
Jay@ArchApple.com
Copyright @ 2015 - Website Design and Search Engine Optimization by Blitz Mogul