Every Wednesday this month, the RAND Blog will highlight a few small ideas for saving big health care dollars. Last week, we introduced the project, as well as small ideas No. 1-3, which ranged from changes in anesthesia personnel to shifting to lower-cost antibiotics for child ear infections.
With the United States spending $2.8 trillion per year on health care, all options for cutting costs should be considered.
Thinking small could save big.
— Pete Wilmoth
Small Idea #4
Shift care from emergency departments to retail clinics
Rationale
For certain medical services, retail clinics—which operate out of pharmacies, grocery stores, and “big box” stores—offer lower-cost care with comparable quality. Roughly 8 percent of emergency department visits could take place at retail clinics.
Estimated annual savings1
$3.5 billion
Feasibility
- Political: Medium
- Operational: Medium
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Small Idea #5
Eliminate copayments for higher-risk patients on cholesterol-lowering drugs
Rationale
Reducing copayments can motivate patients to comply with drug therapy and manage treatment of chronic illness, thereby reducing hospitalizations and emergency department visits.
Estimated annual savings1
$1.3 billion
Feasibility
- Political: High
- Operational: High
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Small Idea #6
Increase use of $4 generic drugs
Rationale
A small percentage of Medicare beneficiaries use $4 drug programs. Policies could encourage use among those who have not been participating in these programs or among those who could save the most.
Estimated annual savings1
$5.9 billion
Feasibility
- Political: High
- Operational: Medium
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Small Idea #7
Reduce Medicare Part D use of brand-name prescription drugs by diabetes patients
Rationale
Medicare beneficiaries with diabetes use two to three times more brand-name drugs, at a substantial excess cost, compared to similar patients in the Veterans Administration (VA).
Estimated annual savings1
$1.5 billion
Feasibility
- Political: Medium
- Operational: Medium
Learn More
1All estimates are in 2012 dollars.
