Healthcare Reform – Projected To Be A Challenge For Revenue Cycle Executives

by Phil C. Solomon on June 14, 2012

in Hospital Revenue Cycle,Hospital Revenue Cycle Improvement,Self Pay Collections

Healthcare Reform for Dummies

It looks like many in Washington believe the pending healthcare act will expand healthcare to many Americans and will have little if any expense increases to the nation’s overall healthcare costs. Time will tell; however, many economists believe the opposite.

If this law does get fully implemented, total healthcare spending “may” grow more slowly than it will without the law, however, our pundits in Washington don’t really know for sure. For those who haven’t read the “Healthcare Reform for Dummies” online, here are a few important estimates or projection’s independent economists at the federal centers for Medicare, and Medicaid Services have outlined:

  • Consumers, employers and government will continue to face higher and higher medical bills as rising costs outpace economic growth.
  • Total U.S. spending on health care is expected to continue to surge during the next decade, hitting about $4.8 trillion in 2021. Currently, healthcare spending equals 16% of the U.S. GDP. By 2021, it is estimated to rise to 20% of the U.S. GDP.
  • Total spending on health- care during the next decade will be approximately 1 percent higher — or about $478 billion —
  • The new estimates show how little the law will do to change the trajectory of health-care spending.
  • Consumers, employers and government will continue to face higher and higher medical bills as rising costs outpace economic growth.
  • Between 2014 and 2021, for example, household spending on insurance premiums is expected to rise 6.8 percent every year on average.
  • Medicare spending is projected to grow annually by 6.9 percent between 2014 and 2019, and federal Medicaid spending is expected to surge to 7.3 percent annually.

The economists estimate that 30 million more people will gain health coverage in the next decade, with major expansions of the government Medicaid program for the poor and the creation of insurance exchanges. That said, what does this all mean for you and me? It means “we” will be paying more out of our pockets for our healthcare, and the care providers will be attempting to collect more from their patients than ever before.

For more information about how revenue cycle executives can stem the tide of self pay write offs, contact Phil C. Solomon at psolomon@ucbinc.com or 404-849-8065 for new ideas and strategies for self pay collections.

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