2018

Misconceptions About Health Costs When You’re Older

That does not mean that all the care provided to dying patients — or to any patient — is valuable. Another study finds that high end-of-life spending in a region is closely related to the proportion of doctors in that region who use treatments not supported by evidence — in other words, waste.

“People at high risk of dying certainly require more health care,” said Jonathan Skinner, an author of the study and a professor of economics at Dartmouth. “But why should some regions be hospitalizing otherwise similar high-risk patients at much higher rates than other regions?”

Why is US health care so expensive? Some of the reasons you’ve heard turn out to be myths.

There were two areas where the United States really was quite different: We pay substantially higher prices for medical services, including hospitalization, doctors’ visits and prescription drugs. And our complex payment system causes us to spend far more on administrative costs. The United States also has a higher rate of poverty and more obesity than any of the other countries, possible contributors to lower life expectancy that may not be explained by differences in health care delivery systems.

Just because other countries use the hospital more doesn’t mean that every hospitalization in the United States is appropriate. Jonathan Skinner, a professor at Dartmouth, who has studied patterns in health care use in the United States, noted that there probably is money to be saved by eliminating some of the extra scans and operations that are much more common in the United States than elsewhere.

Alex Azar ’88 confirmed as HHS secretary

According to economics professor and professor at The Dartmouth Institute for Health Policy and Clinical Practice Jonathan Skinner, lowering the prices of drugs is necessary.

“It’s certainly true that when you give drug companies a monopoly through the patent system on particular drugs that they’ve developed and there’s a general policy that Medicare and private health insurance have to pay whatever it is that the drug companies charge,” Skinner said. “It’s not surprising that the prices they charge are very high.”

Skinner added that he believes Azar to have a firm understanding of drug pricing from his experience in the private sector and said that it will be interesting to see whether the secretary is able to bring a “stronger set of tools” to cut back on prices based on his time at Eli Lilly.

The Integrity of MACRA May Be Undermined by “Incident to Billing” Coding.

The Medicare Access and CHIP Reauthorization Act (MACRA) of 2015 ended the Sustainable Growth Rate formula that for years had resulted in an eleventh-hour intervention by Congress to avoid drastic reductions in Medicare physician payments. MACRA also established incentives for clinician payments to become increasingly based on value with the intent of rewarding clinicians who produce better outcomes at lower costs. Efforts are underway to establish the outcomes and quality measures that will be included in the new payment systems.