Health Care Payment Reform Could Save U.S. $200 Billion-$600 Billion over Coming Decade

According to a new working paper by UnitedHealth Group's Center for Health Reform & Modernization, care provider payment reform could slow U.S. health spending by between $70 billion and $1.01 trillion cumulatively over the coming decade, with more likely savings in the $200 billion to $600 billion range. Around half of these savings might accrue to Medicare and Medicaid.

Underlining the size of the opportunity, the report also finds that U.S. physicians say that care costs could be cut by an average of 18 percent without any impact on quality, and 59 percent of physicians report there are meaningful differences in the quality of care provided by doctors in their local areas - although only 44 percent of consumers are aware of them.

The federal government projects that national health spending will rise from $2.8 trillion to $4.8 trillion over the coming decade, accounting for nearly 20 percent of the U.S. economy.

Source: UnitedHealth Group's Center for Health Reform & Modernization
http://www.unitedhealthgroup.com/newsroom/news.aspx?id=39c1c804-5228-40ae-bfba-bb6c19da7b74