Health Care Policy
Expenditures on health care services in the U.S. account for more than 15% of the nation’s Gross Domestic Product. Outcomes in this vital sector of the economy are affected by a variety of government policies, including Medicare policies, Medicaid policies, and Health Insurance Marketplace policies. The design of these policies affects the health and well-being of all citizens. Health care insurance can help insulate individuals from the potentially enormous costs of acute and extended illnesses. However, many citizens cannot afford actuarially fair insurance. Furthermore, generous insurance coverage can encourage individuals to seek excessive medical care. Health care providers may have incentives to prescribe excessive treatment if all identified treatment costs are reimbursed at generous rates. In contrast, provider incentives to deliver treatment can be diminished by reimbursement rates that do not cover actual costs. The design of sound, effective health care policy must carefully balance these and other considerations. Such design must also constantly adapt as our understanding of the most cost-effective means to prevent and treat illnesses changes.
Primary Health Care Policy researchers: