Commission: Effort to control health spending 'must be led by the states'

A commission of state leaders from across the country released a report this week urging states to take the lead in controlling health costs (Source: “Report: Effort To Curb Health Costs Should Be ‘Led By The States’,” Kaiser Health News, Jan. 9, 2014).

The report, titled “Cracking the Code on Health Care Costs,” was created by the State Health Care Cost Containment Commission and outlines how states can use policy levers and clout as large purchasers of health care to set goals for health spending and quality.

“This must be led by the states,” said former Colorado Gov. Bill Ritter, a Democrat and co-chair of the commission along with former Utah Gov. Michael Leavitt, a Republican. Other commissioners included members representing insurers, hospitals, employers and consumer groups.

Some of the recommendations endorse additional regulations, such as requiring insurers or medical providers to publicly report prices and quality ratings. Others include:

• Adopting annual state spending goals or limits on how much per-resident health spending should rise over 5 years, perhaps as a fraction of state economic growth.
• Using antitrust power to foster coordination of health systems, or to block market consolidation in cases where one entity has so much market control that it affects prices.
• Using education to promote healthier lifestyles for residents and state employees.