Health Reform Options – Bundling Payer Payments Projected Cost Savings
According to American Medical News, out of eight options, RAND Health researchers concluded payment bundling is the most promising way to save money. Because Medicare already bundles hospital payments through the DRG system, hospital-only bundling would save only 0.1% over 10 years. But bundling payments to all payers for treating chronic diseases could save the system more than 5% over the decade.
Reform concept Projected range in national health spending change (2010-19) Bundling payments -5.4% to -0.1% Regulating hospital rates -2.0% to 0.0% Implementing health information technology -1.5% to 0.8% Launching disease management -1.3% to 1.0% Creating medical homes -1.2% to 0.4% Increasing retail clinics -0.6% to 0.0% Expanding scope of practice -0.5% to -0.3% Changing benefits design -0.3% to 0.2%
Note: “Expanding scope of practice” refers to nurse practitioners and physician assistants
- Publication: AMNews, January 4, 2010.
- Data Source: “Controlling U.S. Health Care Spending — Separating Promising from Unpromising Approaches,” New England Journal of Medicine, Nov. 26 (content.nejm.org/cgi/content/extract/361/22/2109)