Affordable health care continues to be an important issue for Wisconsin families and employers. Wisconsin health care providers deliver excellent services. However, the rising cost of health care has led to a shrinking pool of persons with private health care coverage, with an increasing percentage of the public either uninsured or relying on government programs.
As the co-chair of the Senate Health Care Reform Committee, I have been gathering input from a variety of sources on what state policy proposals might address the problem. One recommendation that is repeatedly mentioned is the development of “consumer-driven health care.” By giving consumers more choices, information and incentives, they will make purchasing decisions that meet their health care needs in a more cost-effective way. Such a system has a huge impact on driving efficiencies throughout the health care system, bringing costs down while improving quality.
It’s an approach with proven results. A number of business leaders have testified to the fact that in an era of double-digit premium increases, they have utilized consumer-driven initiatives to not only stem the growth of their health care costs, but realize actual savings while improving the health outcomes for their employees.
Even the State of Wisconsin has gotten into the act. The Group Insurance Board, which administers health insurance programs for government employees and retirees, implemented a three-tiered employee contribution system for health plans. Under this system, employees have a financial incentive to select the most cost-effective plans for their coverage. Employees who choose higher tier, less efficient plans pay higher premiums. The prescription drug formulary is similarly structured.
As a result, premium rate increases for the state’s group health insurance program members have been less than 7.5% after years of double-digit increases. Also, premiums were reduced by 6% for retirees. These initiatives also result in improved quality and efficiency from providers, as they compete for these patients.
As the Senate Health Care Reform Committee continues its work in the coming months, we can build on the gains made in the past session in providing cost and quality data to the public, and allowing health care purchasing pools for small businesses and individuals, so that more Wisconsin residents have affordable access to our world-class health care services.
To provide some feedback on this column, contact me at (800) 863-1113, or sen.darling@legis.wi.gov.
