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Healthcare costs still crushing the country

By Larry McClain

Karen Ignagni, president and CEO of America's Health Insurance Plans, feels that as healthcare reform moves forward, improvements in access may come at the expense of cost containment and quality.

In an October speech to the Nashville Healthcare Council, Ignagni recounted how the AHIP board had taken a leadership role in 2006 in anticipating and framing the healthcare reform dialogue. In AHIP's view, it was essential that reform provide improvements in three areas: access, cost and quality. "As we moved closer to passage of the legislation, access crowded out cost containment and quality," she said. "Most politicians didn't think you could tackle all three simultaneously. They felt that focusing on value and performance was taking on too much, too fast. But to create a sustainable healthcare system, we need to improve value, productivity and consumer satisfaction."

In Ignagni's view, legislators need to consider the consequences of cost hikes that will take place in 2014, when access provisions go into effect for individuals and small businesses.

"We need all stakeholders to get out of their comfort zone and participate in finding solutions," she said.

"Healthcare costs are still crushing the country. We have to go beyond the mindset of 'my cost containment is somebody else's revenue deprivation.' To curb costs, all stakeholders must be called to a higher purpose."

Like most observers, Ignagni feels that Accountable Care Organizations are a step in the right direction, but worries that standards are not yet in place. "We need to make sure that ACOs don't follow the path of PHOs in the '90s because that didn't work very well."