Health Care Costs

Financing the efficient delivery of medical services while reducing costs for consumers as well as health care providers is among the most challenging domestic policy problems many countries face. RAND addresses health economics issues through innovative, high-profile research in an effort to improve the efficiency of health care organizations, reduce costs for providers and consumers, and improve financing in health care markets.

Research conducted by: RAND Health

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Four Strategies to Contain America's Growing Health Care Spending

pills and coins

In its second term, the Obama Administration can restrain further health care spending growth—without compromising quality—by employing four broad strategies: fostering efficient and accountable providers, engaging and empowering consumers, promoting population health, and facilitating high-value innovation.

Cost and Coverage Implications of the Affordable Care Act

scalpel cutting dollar

The ACA's goal of expanding access to health coverage has implications for health care costs at many levels: how it will affect individual decisions to obtain insurance, employer decisions about offering coverage, and government spending.

Commentary (29)

The Cost of Dementia: Who Will Pay? — Apr 30, 2013

Couple reviewing finances with an advisor

It is time for the government in partnership with industry to return to the drawing board to craft a plan that will provide protection for the more than 9 million people who will need care for dementia by 2040, writes Michael D. Hurd.

Remove Medicare's Straitjacket — Mar 29, 2013

pills-spilled-on-cash

Removing the constraints on Medicare would not only lead to lower prices at the drugstore, hospital and doctor's office, it could spark a new era of healthcare innovation, says Arthur Kellermann.

A Health Care Entitlement Worth Ending — Feb 27, 2013

The health care “entitlement” we need to reform is the notion that America's health care system is entitled to an ever-growing share of America's wealth, writes Arthur Kellermann.

The Delayed Promise of Health-Care IT — Feb 26, 2013

Globally, the health IT industry should not wait to be forced by government regulators into doing a better job. Developers can boost the pace of adoption by creating more standardized systems that are easier to use, truly interoperable, and afford patients greater access to and control over their personal health data.

Do You Get What You Pay For? Maybe Not in Health Care — Feb 12, 2013

While the current state of the evidence does not provide clear guidance to policymakers seeking to address the twin pillars of health care quality and cost, it is apparent that researchers must produce more detailed data on how to reduce health care spending while improving quality, writes Peter Hussey.

25 Small Ideas for Saving Big Health Care Dollars — Jan 30, 2013

Given the size of the annual “health care spend”—$2.7 trillion—summing up the savings associated with very minor cost-saving policy changes is likely to achieve significant aggregate savings, writes Jeffrey Wasserman.

Health Care Spending Growth Tamed? Hardly — Jan 25, 2013

The growth of health care costs has slowed dramatically for the third consecutive year but as the economy rebounds, spending growth could skyrocket, says Arthur Kellermann.

Health Care Costs Are Killing Us — Jan 4, 2013

At a time when our country is teetering on the edge of a “fiscal cliff,” no challenge in health care is more important than reducing health care spending, writes Arthur L. Kellermann.

Health Care Cost Growth Is Hurting Middle-Class Families — Jan 3, 2013

Unfortunately, nearly every actor in our health care delivery system—hospitals, physicians, other health care providers, insurance companies and the manufacturers of drugs and devices—is currently focused on maximizing revenue growth, write Arthur Kellermann and David Auerbach.

Health Care Costs Must Be Curbed, No Matter Who Wins — Oct 16, 2012

money and pills

Regardless of which candidate wins in November, and regardless of whether “Obamacare” is repealed, amended, or defended by the next Congress, the next president will have to contend with the spiraling cost of health care in the United States—a problem that is growing more acute with each passing year, writes Arthur Kellermann.

What Will Change Most About Our Routine Physicals Over the Next Decade? — Aug 31, 2012

Don't forget—an American's odds of living a long and healthy life still depend more on his zip code than his genetic code. That won't change until we make healthcare more affordable, writes Dr. Arthur Kellermann.

Will More Employers Drop Coverage Under the ACA? Don't Bet on It — Jul 27, 2012

A problem with using surveys to predict behavior is that they measure employer sentiment toward the ACA today, rather than the economic decisions employers typically make when the time comes, writes Art Kellermann.

Time to Focus on Healthcare Costs — Jun 29, 2012

The bottom line is this: With or without the Affordable Care Act, the nation can no longer kick the can down the road on costs, writes Arthur Kellermann.

Time to Shift Talk to Health Care Costs — Jun 28, 2012

The U.S. Supreme Court's ruling on the Affordable Care Act is unquestionably historic, but there is a critical aspect of health care reform that still needs to be fixed. The nation needs to take decisive action to address the rising costs of health care, writes Arthur Kellermann.

We Need to Know What Physicians Are Thinking — Jun 14, 2012

Before we allow others to implement policies attempting to optimize the use of physician time or reduce the amount of equivocal or inappropriate care, we need to understand what physicians think about these issues and what they are prepared to do about them, writes Robert H. Brook.

The Real Cost of Healthcare — Mar 29, 2012

What do we have to show for all of this spending? Lots of testing and treatment, but not enough health, writes Art Kellermann.

What Happens Without the Individual Mandate? — Mar 21, 2012

If the individual mandate were ruled unconstitutional, subsidies and the age structure of premiums should keep enough healthy people in the insurance exchanges to prevent huge spikes in premiums, write Carter C. Price and Christine Eibner.

Do Physicians Need a 'Shopping Cart' for Health Care Services? — Feb 22, 2012

Providing physicians with cost data in real time automatically as a part of the electronic medical record could make them better purchasers for their patients and provide better value, writes Robert H. Brook.

How Will the Effects of the Affordable Care Act Be Monitored? — Jan 4, 2012

Most will agree with the undeniable fact that a new era in US medicine and US health care begins in less than two years. The key question is what potential measures should be monitored to determine both anticipated and unanticipated effects of the new law on the health of the US population, writes Robert H. Brook.

Provider Consolidation Key Factor in Affordable Coverage — Nov 28, 2011

Hospitals operating with little competition are able to charge health plans much higher prices, which are passed on to consumers in the form of higher insurance premiums, writes Glenn Melnick.

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