Medical 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.

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Research Brief

The Math of State Medicaid Expansion — Jun 7, 2013

Summarizes a RAND analysis of how opting out of Medicaid expansion would affect insurance coverage and spending and whether alternative policy options -- such as partial Medicaid expansion -- could cover as many people at lower costs to states.

Blog

Covering Emergency Care for Young Adults: Is the ACA Doing Its Job? — Jun 5, 2013

The dependent coverage provision of the Affordable Care Act is working as intended, say Andrew Mulcahy and Katherine Harris. In 2011, it spared individuals and hospitals from $147 million in emergency room costs.

Report

Improving Care for Medicare Beneficiaries with Physician Payment Reform — Jun 5, 2013

doctor speaking with senior patient

Physician payment policy is shifting from one that incentivizes the delivery of more services without regard to quality or outcomes to one that incentivizes the delivery of high quality, resource conscious health care. Thoughtful incentive design can ease the transition process for both physicians and the Medicare program.

Report

Pharmaceutical pricing: The use of external reference pricing — Jun 4, 2013

The report reviews approaches to pharmaceutical pricing in Canada, France, Germany, Italy, the Netherlands and Spain to inform better understanding of the role of external reference pricing and its relevance to the UK.

News Release

Expanding Medicaid Is Best Financial Option for States — Jun 3, 2013

States that choose not to expand Medicaid under federal health care reform will leave millions of their residents without health insurance and increase spending on the cost of treating uninsured residents, at least in the short term.

Journal Article

Expanding Medicaid Is Best Financial Option for States — Jun 3, 2013

Nuns On The Bus rally and Texas Capitol visit about Medicaid

States that choose not to expand Medicaid under federal health care reform will leave millions of their residents without health insurance and increase spending on the cost of treating uninsured residents, at least in the short term.

Report

Reviewing Workplace Wellness Programs — May 30, 2013

businessman with bicycle

Workplace wellness programs are becoming quite common, and employers are optimistic about their benefits. However, such programs must be well-executed to have a meaningful effect on employee health, and significant reductions in health care cost may take time to materialize.

Journal Article

Health Reform Shields Young Adults from Emergency Medical Costs — May 29, 2013

A nurse meeting with a young woman and her mother in a hospital

A new federal law allowing young adults to remain on their parents' medical insurance through age 25 has shielded them, their families, and hospitals from the full financial consequences of serious medical emergencies.

News Release

Health Reform Shields Young Adults from Emergency Medical Costs — May 29, 2013

A new federal law allowing young adults to remain on their parents' medical insurance through age 25 has shielded them, their families, and hospitals from the full financial consequences of serious medical emergencies.

Periodical

Dementia's Mounting Toll on the U.S. Economy — May 24, 2013

woman hugging her elderly mother

Dementia costs Americans hundreds of billions of dollars per year, and the annual cost could top half a trillion by 2040 due to the “graying” of the U.S. population. This infographic shows the soaring economic costs and caseload of dementia.

Report

Hospital Emergency Departments Play a Growing Role in the U.S. Health Care System — May 20, 2013

patients in a waiting room

Emergency departments account for a rising proportion of hospital admissions and serve increasingly as an advanced diagnostic center for primary care physicians. While often targeted as the most expensive place to get medical care, emergency rooms remain an important safety net for Americans who cannot get care elsewhere.

News Release

Hospital Emergency Department Use, Importance Rises in U.S. Health Care System — May 20, 2013

Hospital emergency departments play a growing role in the U.S. health care system, accounting for a rising proportion of hospital admissions and serving increasingly as an advanced diagnostic center for primary care physicians.

Research Brief

The Evolving Roles of Emergency Departments — May 20, 2013

This brief summarizes a RAND analysis of the role of that hospital emergency departments may come to play in either contributing to or reducing the rising costs of health care.

Research Brief

Does integrated care deliver the benefits expected? Findings from 16 integrated care pilot initiatives in England — May 13, 2013

RAND Europe co-led an evaluation of 16 varied pilot projects initiated by the Department of Health (England) as a means to explore new ways of integrating patient care from different local provider.

News Release

Strategies Could Curb Medicare Costs, but Also Drive Seniors Out of Insurance Program — May 6, 2013

The rising cost of Medicare can be cut through strategies such as increasing premiums and raising the eligibility age, but those moves could drive many elderly Americans from the program, leaving them with limited access to health services.

Journal Article

Strategies Could Curb Medicare Costs, but Also Drive Seniors Out of the Program — May 6, 2013

Doctor examining female senior patient with elbow pain

The rising cost of Medicare can be cut through strategies such as increasing premiums and raising the eligibility age, but those moves could drive many elderly Americans from the program, leaving them with limited access to health services.

Commentary

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.

Report

The Monetary Costs of Dementia in the United States — Apr 24, 2013

an elderly woman with a caretaker

Identifying the costs of dementia is challenging because persons who have it are likely to have co-existing chronic health problems, making isolating the costs among other costs difficult. Also, it is unclear how to attribute a monetary cost to informal caregiving.

Content

The Affordable Care Act: Four Key Policy Areas — Apr 23, 2013

Obama signing the ACA

With the complex process of implementing the ACA underway, RAND research is tracking the progress of implementation and assessing the potential consequences of choices facing federal and state governments, employers, families, and individuals.

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