Rising health care costs have put increasing pressure on families, employers, and taxpayers — and on state budgets. Fortunately, research shows strong bipartisan support for solutions that make care more affordable. By taking bold, evidence-based action, states have the opportunity to build a health care system that delivers better value, improved outcomes, and lower costs.
Health care costs are a burden on the economy and American families.
- Health care spending is 17.6% of GDP: higher than any other peer nation, yet outcomes are similar or worse.1
- Costs are growing twice as fast as inflation.23
- 36% of adults have skipped or postponed needed health care due to cost.4
- 1 in 4 American families report not filling a prescription in the past year. 5
- 8% of employees’ total compensation is now spent on health care; employers spend more on it than any other employee benefit.6
What can states do?
Lower costs and improve administration of public benefit programs.
- Modernize Medicaid oversight and administration and reform state procurement processes.
- Benchmark prices for state employee health care plans to Medicare or another reference price.
Make insurance more affordable for employers and families.
- Crack down on unchecked, costly provider consolidation.
- Rein in high hospital and drug prices.
Transform how health care is experienced and delivered.
- Bolster access to high-quality primary care through payment reform.
- Use hospital global budgets to enable better, more efficient care.
Improve transparency and oversight of the health care market.
- Use state-level cost, quality, and utilization data to drive smarter oversight and reforms.
- Require ownership transparency to expose hidden consolidation and cost drivers.
