Business
Insurer executive: Costs out of control
01:00 AM EST on Tuesday, November 24, 2009
PROVIDENCE — The nation’s health-care system is broken, but congressional proposals to fix it do not focus enough on controlling spiraling costs, according to the president of one of the nation’s largest health insurers.
Gail K. Boudreaux, president of UnitedHealthcare and executive vice president of its parent, UnitedHealth Group, acknowledged the system’s problems during a speech Monday night before members of the Greater Providence Chamber of Commerce.
For example, between 1999 and 2008, workers’ earnings rose 34 percent overall, but health-care costs — reflected in premiums — jumped 119 percent over the same period, she said.
Skyrocketing health-care costs are squeezing employers and employees alike, and threaten the nation’s economic recovery and its global competitiveness, she said.
But “while there is much that is good in many of the [reform] proposals under debate, there has been much more attention to expanding coverage than there has been to controlling costs,” she said.
“We continue to believe that access to universal health care will only be sustainable if legislation effectively addresses the underlying cause of the problem — namely, that health care in this nation costs too much,” she said.
Boudreaux was the main speaker at the Chamber’s 142nd annual meeting. About 700 businesspeople, government leaders and others attended the event, held at the Rhode Island Convention Center.
Boudreaux described some collaborative health-related efforts in Rhode Island that she said are leading to a more affordable, effective and efficient health-care system — and could serve as models for broader programs with a national scope and impact — including the following:
•The Rhode Island Chronic Care Sustainability pilot, geared to improving preventative and chronic disease treatment for three common and costly chronic illnesses: diabetes, depression and coronary artery disease.
•“CurrentCare,” an effort through the nonprofit Rhode Island Quality Institute to compile, coordinate and store patient medical records and allow secure, privacy-protected access to patient medical information. Nearly 30,000 people have been enrolled so far, she said.
•“Rewards for Wellness,” which encourages participating state workers to engage in activities that can result in improved health, such as tobacco-cessation programs; on-site flu-shots, health fairs and health screenings; and a health-assessment campaign.
On the national reform front, UnitedHealthcare supports proposals that would, among other things, “bring everyone into the system,” guarantee coverage for all Americans and do away with limits based on pre-existing medical conditions.
The company backs expanding the existing system of employer-based health insurance coverage; modernizing the government health plans Medicare and Medicaid; strengthening primary care; improving preventative care and chronic-disease management; and using practical cost-containment strategies to slow the growth of health-care costs, she said.
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