Health Plan For Increase Expenditure

898 WordsFeb 25, 20164 Pages
There are a number of products and initiatives being used by health plans to control expenditures and maintain market competitiveness. Recent slowing in health expenditures has largely been due to price changes, a shift from inpatient to outpatient care, and increased coverage. However, here I will focus on operational changes within the health plan that can be made to decrease expenditures. I will discuss how investing in disease management programs, wellness incentives, and value-based insurance design now can be used to control rising healthcare expenditures in the future while adding value for consumers. I will also discuss the challenges involved with implementing these initiatives. Disease Management Programs: Background A small portion of the patient population accounts for a disproportionate amount of health care expenditures primarily due to chronic illness (Shelton, 2002). Because of this, and the overall rise in healthcare costs, stakeholders have been searching for ways to target this small but expensive group of people. One way is through disease management programs. It is a common belief that education and preventive measures make it easier to manage chronic illness and reduce adverse outcomes including lengthy hospitalizations (Shelton, 2002). Although these programs are fairly new and there isn’t much data to support or refute their success, this is an area worth exploring to potentially curve skyrocketing healthcare expenditures. Cost Control Method
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