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The United States spends a larger share of its GDP on health care than any other advanced economy. This high private sector health-care spending in the United States is driven mostly by higher prices, with little evidence to suggest that high prices reflect better quality of care. In this proposal, Michael Chernew, Leemore Dafny, and Maximilian Pany discuss how price regulations could be used to constrain commercial provider prices in an efficient manner.
On February 26th, The Hamilton Project hosted a forum featuring a diverse group of experts from around the country who discussed 13 targeted policy proposals that were released that day on reforming entitlement spending, tax reform, and how to create new sources of revenue and efficiency. The proposals provide specific strategies on how lawmakers can address many different areas of the budget, and address options to reduce both mandatory and discretionary spending.
Slowing the rate of health care spending growth will likely require transitioning away from a fee-for-service system to a global payment system. Michael Chernew and Dana Goldman propose policies to promote efficiency in the Medicare program by providing incentives to treat disease rather than paying for individual services in a way that encourages improvements to the quality of care.