“I'm going to focus on making the system more of
a market, getting rid of barriers, and—if I could—find a way to make it
possible for those of us who buy health care services every day to know
the price of what we're paying for.” – Sen. Lamar Alexander
WASHINGTON, December 12, 2018 — Senate health committee
Chairman Lamar
 |
You can watch Senator Alexander’s discussion
with Axios’ Mike Allen here |
Alexander (R-Tenn.) today said the health care debate
should “move from health insurance to health care costs.”
At an event hosted by Axios today, Alexander discussed his 2019
health care policy priorities, specifically reducing the cost of health
care, with Axios co-founder and Executive Editor Mike Allen.
“My focus over the next two years is to see if we can do one or two
big things to reduce health care costs and maybe 10 or 12 little things
and try to move the whole debate from health insurance where we've been
stuck for eight years arguing about six percent of the health insurance
market, that's Obamacare, to health care costs,”
Alexander said. “You'll never get lower-cost health insurance until you have lower-cost health care.”
He added: “We've had five hearings on reducing health care
costs and Dr. Brent James, who is a member of the American Academy
of Medicine said that
30 to 50 percent of what we spend on health care
is unnecessary. So I was so startled by that, that I asked the other
witnesses, they agreed with him, and I asked the next panel of witnesses
and the next, and they agreed with him too. That means that,
of the
huge amount we spend on health care, we unnecessarily spend an amount of
money that's more than the gross domestic product of every country in
the world, but nine.”
Mike Allen: You said that one of the biggest problems is people don't know the true cost of their health care.
Alexander: “Well, that's it. The first thing is to get rid of
the barriers in the way of innovators, but nobody knows the cost.
Secretary Azar is going to be here. He's got a great story about how he
went for a procedure and found out it costs several thousand dollars and
he got on the website and checked around and found out he could get it
for $550 in the doctor's office. So
the way our system is set up, you
don't know the price and if no one knows the price, prices aren't going
to come down.”
Mike Allen: Now you talked about the next two
years, and in January, we're going to have divided government… What is
one big thing that you believe you can accomplish next year as Chairman?
Alexander: “Well, I've talked already with [Senator Patty
Murray], and on my short list is reducing health care costs. … I'm going
to focus on making the system more of a market, getting rid of
barriers, and if I could find a way or ways to make it possible for
those of us who buy health care services every day to know the price of
what we're paying for, that would be the single most important thing I
could focus on for two years. I mean, we should do that. The Members of
Congress should not sit around with the facts in front of us that we're
spending $1 to $1.8 trillion unnecessarily on health care and not do
anything about it.”
Background:
In a Senate floor speech yesterday, Alexander announced he
will be seeking specific legislative, regulatory, or sub-regulatory
solutions to help lower health care costs. During the speech, he said,
“Up to half of health care spending is unnecessary.”
Alexander yesterday sent a
letter to leading health care experts at the
American Enterprise Institute and the Brookings Institution,
economists, doctors, nurses, patients, hospital administrators, state
regulators and legislators, governors, employers, insurers, and
innovators asking them to identify specific ideas about how to reduce
health care costs for taxpayers, employers, and families after
concluding a series of five Senate health committee hearings exploring
the same topic.
At the first hearing of the series, the committee established a common understanding of how much health care costs; at the second hearing, the committee explored ways to reduce unnecessary health care spending; at the third hearing, the committee focused on ways to reduce the administrative burden on doctors and hospitals; and at the fourth hearing,
the committee focused on finding ways to improve access to information
about the cost and quality of health care for patients. At the fifth and final hearing of
the series, the committee examined what the private sector is doing to
encourage innovation and what Washington can do to get out of the way to
lower costs.
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