The U.S. can slash health-care costs 75% with 2 fundamental changes — and without ‘Medicare for All.’ OPINION
As the Democratic presidential candidates argue about “Medicare for All” versus a “public option,” two simple policy changes could slash U.S. health-care costs by 75% while increasing access and improving the quality of care.
That’s why the price of LASIK eye surgery, as just one example, has fallen so dramatically even as quality has soared. Adjusted for inflation, LASIK cost nearly $4,000 per eye when it made its debut in the 1990s. These days, the average price is around $2,000 per eye and you can get it done for as little as $1,000 on sale.
What happened in Indiana The second policy—deductible security—pairs an insurance policy that has an annual deductible with a health savings account that the policy’s sponsor funds each year with an amount equal to the annual deductible. We know this because Indiana Gov. Mitch Daniels ordered a study that tracked health-care spending and outcomes for state employees during the 2007-to-2009 period when deductible security was first offered. Employees choosing this plan were, for example, 67% less likely to go to high-cost emergency rooms They also spent $18 less per prescription because they were vastly more likely to opt for generic equivalents rather than brand-name medicines.
Look at Singapore By contrast, if we were to require price tags in addition to deductible security, the combined savings would amount to about 75% of what we are paying now for health care.
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