Medicare Blog

how much money would be saved if medicare focused on preventive care rather than curative

by Dr. Niko Koss Published 2 years ago Updated 1 year ago

According to the CDC, chronic diseases that are avoidable through preventive care services account for 75 percent of the nation’s healthcare spending and lower economic output in the US by $260 billion dollars a year. If everyone in the country received recommended clinical care, then the healthcare system could save over 100,000 lives a year.

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Can preventive care save our health system money?

Hospital care is very expensive, making up one-third of all healthcare costs in America. 2 In 2010, 21.4% of adults had one or more emergency room visits. By 2017, that had decreased to 18.6%, before rising again to 21.3% in 2018. 3 4. Adults who do not have affordable access to preventative care are more likely to use the emergency room as ...

Do preventive measures save money or add costs?

 · An additional 15 preventive services were cost-effective, meaning that they cost less than $50,000 to $100,000 per quality adjusted life-year gained. But all of these analyses looked within the ...

How does the ACA rely on preventive care to cut costs?

According to CDC estimates, vaccinations among children born from 1994 to 2013 will prevent 322 million illnesses, 21 million hospitalizations, and …

How much do preventive services cost?

 · However, the digital rectal exam is covered up to 80%, and you pay 20% of the Medicare approved amount, plus Part B deductible. Please contact Medicare for a complete list of the preventive screenings available to you. You can find personalized Medicare information online by registering at “MyMedicare.gov”.

How much money would preventative care save?

According to the CDC, chronic diseases that are avoidable through preventive care services account for 75 percent of the nation's healthcare spending and lower economic output in the US by $260 billion dollars a year.

Is prevention cheaper than treatment?

Prevention is better than cure. It's cheaper too. In fact, preventing future illnesses and preventing complications from existing conditions, are vital to the future sustainability of health systems. For a vaccine that prevents measles, or a medication that prevents a heart attack, the value is obvious.

Is preventive medicine better than curative medicine?

Curative expenditure treats the disease as well as eases the pain, and is thus concerned as consumption spending. Preventive health care accumulates health stock as well as increases the number of days available to participate in market and non-market activities, which in turn stimulates goods production.

Why prevention is better then cure?

Answer: Prevention is considered as better than cure because it saves us from the harm of curing through medicines. Prevention is a safe way to remain away from any problem. We just need to maintain a healthy and disciplined lifestyle all through life.

Why is prevention better than treatment?

Most types of medicine focus on treating an illness or injury, rather than keeping it from happening. But preventive medicine stops sickness before it starts. How does it do that? By preventing disease, disability and death — one person at a time.

Why do we focus on preventive promotive and rehabilitative services than curative services?

It depends on the type of problem and what effect each initiative can produce. Preventive care or promotion does a lot of times increase the need for curative care, because the demand is stimulated. This is a good thing, and the very reason why integration is needed.

What is the importance of preventive medicine?

The goal of preventive medicine is to promote health and well-being and prevent disease, disability, and death.

Does nursing fall under curative health?

It forms an integral part, both of the country's health system of which it is the nucleus and o f the overall social and economic development of the community. It is thus not only curative, but pre ventive, promotive, rehabilitative and maintenance care.

Why is spending more on preventive care important?

Image. Credit... Sarah Mazzetti. The idea that spending more on preventive care will reduce overall health care spending is widely believed and often promoted as a reason to support reform. It’s thought that too many people with chronic illnesses wait until they are truly ill before seeking care, often in emergency rooms, where it costs more.

How much money would have been saved in 2006?

They found that this probably would have saved about $3.7 billion in 2006. That might sound like a lot, until you realize that this was about 0.2 percent of personal health care spending that year. It’s a pittance — and that was with almost complete compliance with recommendations. One reason for this is that all prevention is not the same.

How does prevention improve outcomes?

Prevention improves outcomes. It makes people healthier. It improves quality of life. It often does so for a very reasonable price. There are many good arguments for increasing our focus on prevention. Almost all have to do with improving quality, though, not reducing spending.

Why is the task force not the same as the prevention?

One reason for this is that all prevention is not the same. The task force doesn’t model costs in its calculations; it models effectiveness and a preponderance of benefits and harms. When something works , and its positive effects outweigh its adverse ones , a recommendation is made. This doesn’t mean it saves money.

Which experiment randomly chose some uninsured people to get Medicaid before the A.C.A. went into effect

The Oregon Medicaid Health Insurance experiment, which randomly chose some uninsured people to get Medicaid before the A.C.A. went into effect, also found that insurance led to increased use of emergency medicine. Massachusetts saw the same effect after it introduced a program to increase the number of insured residents.

Does improving outpatient care save money?

Accountable care organizations rely on the premise that improving outpatient and preventive care, perhaps with improved management and coordination of services for those with chronic conditions, will save money. But a recent study in Health Affairs showed that care coordination and management initiatives in the outpatient setting haven’t been drivers of savings in the Medicare Shared Savings Program.

Is emergency room care free in Massachusetts?

Massachusetts saw the same effect after it introduced a program to increase the number of insured residents. Emergency room care is not free, after all. People didn’t always choose it because they couldn’t afford to go to a doctor’s office. They often went there because it was more convenient.

What is preventive health care?

Preventive health care is something family physicians excel at. We use evidence-based medicine to focus on how to best prevent heart attacks, to find cancer early and to prevent infectious diseases through immunization. But are we targeting the right individuals and populations in our specific preventive efforts? Are we aware of the most impactful preventive strategies?

Who said "an ounce of prevention is worth a pound of cure"?

Ben Franklin 's proverb that "an ounce of prevention is worth a pound of cure" makes sense to all of us, especially in medicine.

What are the three types of prevention?

There are actually three types of prevention, a nuance that most policymakers and economists miss. Primary prevention is preventing a disease or problem in the first place , such as exercising to avoid obesity. This tends to be a combined effort of public health and medical professionals.

What is secondary prevention?

Secondary prevention is typically performed in medical settings and has to do with preventing progression or impact of an existing disease, such as establishing an appropriate diet to control blood sugar for someone with diabetes mellitus.

Is colonoscopy a prevention?

But colonoscopies are not "true" (i.e. primary) prevention. There is likely no way to eradicate colon cancer 100 percent before it occurs, which then causes confusion among the general public. Should we be getting colonoscopies or not? We should in order to save lives, but we need to educate that this is early detection, not prevention.

Is prevention cost effective?

Many economists say that prevention isn't cost-effective, and that focusing too much on prevention instead of treatment can actually make things worse for our health care system. So which is it, and what should family physicians do to best help our patients?

What is the primary focus of Hillary Clinton's health care plan?

A popular component of such plans involves greater promotion of preventive health measures. The first element in Hillary Clinton's plan is to “focus on prevention: wellness not sickness.” John Edwards has stated that “study after study shows that primary and preventive care greatly reduces future health care costs, as well as increasing patients' health.” Mike Huckabee has said that a focus on prevention “would save countless lives, pain and suffering by the victims of chronic conditions, and billions of dollars.” Barack Obama has argued that “too little is spent on prevention and public health.”

Why is prevention important in health care?

The focus on prevention as a key source of cost savings in health care also sidesteps the question of whether such measures are generally more promising and efficient than the treatment of existing conditions. Researchers have found that although high-technology treatments for existing conditions can be expensive, such measures may, in certain circumstances, also represent an efficient use of resources. 5 It is important to analyze the costs and benefits of specific interventions.

What is Hillary Clinton's plan?

The first element in Hillary Clinton's plan is to “focus on prevention: wellness not sickness.”. John Edwards has stated that “study after study shows that primary and preventive care greatly reduces future health care costs, as well as increasing patients' health.”.

What did Mike Huckabee say about prevention?

Mike Huckabee has said that a focus on prevention “would save countless lives, pain and suffering by the victims of chronic conditions, and billions of dollars.”. Barack Obama has argued that “too little is spent on prevention and public health.”.

Is preventive medicine expensive?

In contrast, some preventive measures are expensive given the health benefits they confer. In general, whether a particular preventive measure represents good value or poor value depends on factors such as the population targeted, with measures targeting higher-risk populations typically being the most efficient.

Is high-priced technology good value for money?

5. Weinstein MC. High-priced technology can be good value for money. Ann Intern Med 1999 ;130: 857 - 858

Do preventive measures save money?

Although some preventive measures do save money, the vast majority reviewed in the health economics literature do not. Careful analysis of the costs and benefits of specific interventions, rather than broad generalizations, is critical.

How often does Medicare cover heart screenings?

However, you will have to pay 20% of the Medicare-approved amount including the Part B deductible. Once every 5 years, Medicare covers the following preventive care screenings to detect conditions that may result in heart attacks or strokes – cholesterol, lipid, lipoprotein, and triglyceride levels.

How often does Medicare cover colorectal cancer screening?

If you are at high risk, or you are of child-bearing age and had an abnormal pap test in the past 3 years, then Medicare covers these screenings once every 12 months. Colorectal cancer screenings: One or more of the following preventive care tests may be covered to detect precancerous growths or cancer early:

How to prevent illness?

Preventive care to avoid illness can be achieved in numerous ways, i.e. exercising, living a healthy lifestyle, not smoking, eating right and maintaining a healthy weight. However, another important way of keeping illness at bay, is by having preventive screenings for diseases. Medicare offers a multitude of screenings to help discover disease ...

What is assignment in Medicare?

Assignment is an agreement by your doctor, provider or supplier to be paid by Medicare, to accept the amount that Medicare deems reasonable for the service, and not to bill you for any additional amounts other than the Medicare deductible and coinsurance.

How often does Medicare cover mammograms?

Breast cancer screening (mammograms): If you are age 40 or older, Medicare covers screening mammograms once every 12 months to check for breast cancer. In addition, Medicare also covers a baseline mammogram for women 35-39.

What is Medicare screening?

Medicare offers a multitude of screenings to help discover disease and health problems early. It is in the early stages of a disease that treatment works best. Some of these screening services include wellness exams, vaccinations, laboratory tests and screenings for cancer and other diseases (see below).

How often is prostate cancer screening covered by Medicare?

Prostate cancer screenings: The PSA (Prostatic Specific Antigen) test and digital rectal exam are covered by Medicare once every 12 months for men over 50 years old (starting the day after your 50 th birthday). The PSA test is at no charge.

How much of the US healthcare budget is spent on preventive care?

According to the CDC, chronic diseases that are avoidable through preventive care services account for 75 percent of the nation’s healthcare spending and lower economic output in the US by $260 billion dollars a year.

Why is preventive care important?

Preventive care can help keep patients from developing costly chronic conditions, some of which are multi-billion dollar healthcare spending juggernauts.

How can payers and providers work together to reduce readmissions?

To support readmissions reductions, the authors concluded that payers and providers can work together to shift away from fee-for-service models and use collaborative care services such as ACOs and bundled payments. The authors also suggested that risk assessment and measurement can help improve care efficiency in hospitals.

Why is it important to encourage preventive care?

Encouraging the use of preventives services can keep patients healthy, and stop them from getting sicker, so that payers don’t have to pay for higher cost treatments and services.

How much would reducing hypertension save the US economy?

Reducing the prevalence of hypertension in the US by just five percent would save the economy $25 billion , adds the Surgeon General’s National Prevention Strategy. Preventing permanent, long term infections and diseases like HIV/AIDS can also lower spending.

Do you have to pay for preventive services under the ACA?

Under current ACA provisions, payers are required to provide preventive services such as screenings, tests, and health evaluations at no cost when consumers receive care in specific provider networks. However, if payers treat preventive services as a “want to do” instead of just a “must do,” then they can see sizable returns on spending ...

Is spending healthcare dollars on over-utilization of the ED problematic for payers?

Spending healthcare dollars on over-utilization of the ED is extremely problematic for payers. Payers can’t remain profitable if their beneficiaries are constantly using expensive ambulatory services or ED resources when there are other solutions to their care needs .

How does prevention help in health care?

Prevention can reduce the risk factors that lead to chronic diseases, slow their progression, improve overall health and reduce health care spending. Taking a prevention-first approach reaps benefits in the workplace as well: An unhealthy population leads to higher rates of absenteeism and presentism. In fact, the annual costs related ...

Why do we need a more integrated, prevention-centric approach to health and health care?

We need a more integrated, prevention-centric approach to health and health care if we truly want to help Americans enjoy longer, healthier and more productive lives. Changing the system won't be easy and it won't happen overnight. But better health, better health care and lower health costs are goals we all can embrace for the good health of the country.

What is accountable care community model?

We also encourage the Center for Medicare and Medicaid Innovation to invest in a robust demonstration of an accountable health community model, a newer variation of the accountable care organization that is explicitly focused on the health outcomes for a population within a geographic area using community-based interventions. This could establish a concrete framework for improving population health while leveraging the existing delivery-system infrastructure.

What is a diabetes prevention program?

The YMCA's Diabetes Prevention Program is a working example. YMCA-trained lifestyle coaches administer a one-year, group-based intervention promoting healthy eating and physical activity for individuals with pre-diabetes. Program results found participants lost 5 percent to 7 percent of their body weight, significantly reducing their likelihood of developing type-2 diabetes. These data incentivized 30 different commercial health plans to cover the cost of the YMCA program because the costs of the program were far less than the cost of covering a diabetic patient.

Why did the Bipartisan Policy Center convene a Prevention Task Force?

In order to refocus on wellness, over the past year, the Bipartisan Policy Center convened a Prevention Task Force to determine how to change our nation's health conversation so we are taking actions to promote wellness rather than focusing solely on providing reactive medical treatment after a person gets sick.

How much do Americans spend on health care?

Americans spend over $3 trillion a year on health care but have shorter life expectancies and higher rates of infant mortality and diabetes than our global peers. It turns out our behaviors – shaped by our physical and social environments – are the primary determinants of health and well-being.

Why is fee for service unsustainable?

This is unsustainable because diet, exercise, smoking, substance abuse, violence and environmental conditions have a greater influence on health than treatments and pills.

How does preventive care impact the health system?

Flottemesch of HealthPartners Research Foundation suggests that preventive services at the primary and secondary levels yields mixed results in terms of net medical savings to the healthcare system , highlighting the importance of expanding the conversation on prevention beyond costs alone to include value and benefits not captured by pure dollars. Although primary preventive services, such as daily aspirin use and alcohol and tobacco use screenings, could have yielded net savings of nearly $1.5 billion in his analysis, the use of secondary preventive services, such as mammograms and depression screenings, actually results in net costs of almost $2 billion. He also acknowledges that certain costs could have been omitted or double-counted due to insufficient data. Flottemesch concludes that, while different types of evidence-based clinical preventive services have the potential for differential impacts depending upon current delivery rates and target populations, evidence-based preventive services should be embraced, and their use encouraged, because of their positive health impact.

How does obesity affect Medicare?

The obesity epidemic enhances the leverage of disease prevention because of its prominent role as a risk factor for cardiovascular disease, diabetes, and other major contributors to mortality and costs. Some economists predict that the obesity epidemic, if unchecked, will increase Medicare spending by 34 percent (Lakdawalla et al., 2005), a forecast not lost on policy makers. Testifying in Congress in 2008 as director of the Congressional Budget Office (CBO), Peter R. Orszag (now director of the White House Office of Management and Budget) noted that per capita health spending in 2001 was $2,783 for persons of normal weight but $3,737 and $4,725 for obese and morbidly obese persons, respectively (U.S. Senate, 2008). State governments, payers, and employers have made similar calculations (Texas Comptroller of Public Accountants, 2007). They recognize the need to address obesity or face adverse economic and workforce consequences.

How long does it take to rehospitalize a patient after discharge?

About 20 percent of Medicare beneficiaries are rehospitalized within 30 days and 34 percent within 90 days of an initial hospitalization (Jencks et al., 2009). Almost half of those rehospitalized had no evidence of an outpatient follow-up visit between admissions. In 2004, the costs associated with rehospitalization were estimated to be $17 billion.

What are the consequences of inadequate emphasis on disease prevention?

The consequences of inadequate emphasis on disease prevention are first measured in human terms: the price paid in terms of greater illness (e.g., morbidity, incidence and prevalence of disease, impaired functional status/quality of life) and premature mortality ( e.g., deaths before age 65, diminished life expectancy, healthy years of life lost). According to the National Commission on Prevention Priorities, fully 100,000 deaths would be averted each year by improving the delivery of just five preventive services (National Commission on Prevention Priorities, 2007).

How does prevention help with chronic disease?

A large proportion of the chronic diseases of concern are preventable, providing an opportunity to exploit prevention as a strategy to bend the curve and reduce growth in disease burden and its associated costs. Fully 38 percent of all deaths in the United States are attributable to four health behaviors (smoking, unhealthy diet, physical activity, and problem drinking) (Mokdad et al., 2004). But interventions aimed at these behaviors can yield impressive results. Randomized trials have demonstrated that intensive lifestyle change can reduce new cases of diabetes by more than 50 percent (Diabetes Prevention Program, 2002). Early detection of certain cancers and other chronic diseases through screening can reduce mortality from these conditions by 15 to 20 percent (AHRQ, 2008). Taken together, the potential leverage of prevention in calibrating the morbidity and costs associated with chronic disease is substantial, potentially averting 70 percent of such cases (CDC, 2004).

How to slow down growth in spending?

However, the first priority in bending the curve to slow growth in spending is less about searching for the handful of services that produce net savings and more about shifting spending from low-value to high-value services. This redistribution of spending can achieve greater health gains for the same resource investment while also reducing outlays for costly services that offer modest or no benefits. Channeling resources toward health services that optimize economic value can save more lives for the same dollar, and failing to do so has measurable human and monetary consequences.

Is preventive care underused?

One undisputed fact is that clinical preventive services are currently underused (CDC, 2008b; National Commission on Prevention Priorities, 2007). According to data from the Centers for Disease Control and Prevention’s (CDC’s) National Health Interview Survey and Behavioral Risk Factor Surveillance System, only 37 percent of adults are routinely immunized for influenza, and 28 percent of adults are routinely screened for tobacco use and provided assistance to quit. In addition, obesity, alcohol, and depression are not routinely screened for during clinical visits. Clearly, these missed opportunities for improving health and increasing quality have financial ramifications. Here, we discuss these ramifications in terms of the costs and potential savings of improving the delivery of baskets of evidence-based primary and secondary preventive services.

How many primary care visits per year without copay?

It would allow anyone with any health insurance, including catastrophic plans, up to four primary care visits per year without copay. Preventive medicine, we know, is the best money spent in health care. If we can prevent a heart attack, we will save the system money.

Why would insurance remain profitable?

Insurance would remain a profitable industry because it would still be needed to cover hospitalization and subspecialist services. This would be a two-tiered system in which everyone would be covered by primary care in hopes of keeping the population healthy alongside another tier to cover accidents and subspecialty needs.

Why do we want payment reform for family physicians?

As I travel around the country, I hear the issues facing us all. Sure, we want payment reform because we know the facts of "no margin, no mission." Many family physicians are small-business people. They are struggling to pay employees and provide them with health insurance and other benefits, as well as to pay the rent, malpractice insurance, utilities, taxes and a myriad of other expenses before they pay themselves. Family physicians deserve a decent wage, loan forgiveness and economic stability.

How much did diabetes cost in 2017?

Similarly, the cost of care and lost productivity for patients with diagnosed diabetes increased 26 percent from 2012 to 2017, rising to $327 billion. Costs related to COPD are expected to reach $49 billion next year, up from $32.1 billion in 2010. And the direct health care costs for cancer in 2015 were estimated at $80.2 billion

Why do we have for profit groups in healthcare?

Maximizing profit is why we have for-profit groups in health care. Not-for-profit-groups have had to fall in line with the for-profit groups to compete for patients. Hospitals have had to redesign facilities to make them more appealing to compete for patients. With grandeur comes expense.

Why would the financial savings not be immediate?

The financial savings would not be immediate, of course, because we need to continue to treat those with existing conditions. But consider the future. If we invested in primary care -- in a system run by doctors, not for-profit administrators -- consider the potential savings.

Do family physicians deserve a decent wage?

They are struggling to pay employees and provide them with health insurance and other benefits, as well as to pay the rent, malpractice insurance, utilities, taxes and a myriad of other expenses before they pay themselves. Family physicians deserve a decent wage, loan forgiveness and economic stability.

How to increase uptake of preventive services?

Increasing uptake of preventive services requires multifaceted strategies, including but not limited to organizational leadership, education, measurement, and reimbursement. With this in mind, we developed an interview guide ( Table 2 ), which included a series of questions focused on how payers, health systems, and physicians determine their clinical and business priorities for resource allocation and quality improvement efforts. We asked about opportunities to include incentives for the use of preventive services under current and emerging designs of models for payment and delivery. We included questions about examples of successful implementation of preventive services strategies or models and about clinical–community linkages that focus on chronic disease prevention.

Why are preventive services underutilized?

Underutilization of preventive services is largely the result of an implementation gap rather than an information gap; in other words, providers do not prioritize preventive care services although they know that preventive services can reduce the incidence and burden of chronic diseases. A major reason the implementation gap exists is that financial incentives do not align with a focus on preventing chronic diseases. Currently, most providers, including hospitals and physicians, are paid to treat rather than to prevent disease. Payers have the potential to increase utilization of preventive services with value-based payment models and contractual requirements that include reporting on preventive health quality measures.

What is the role of health care payers?

The third finding focused on the role of health care payers (commercial payers/health plans, Medicaid, and particularly Medicare) in influencing uptake of preventive care services. Findings coalesced around the opportunities for payers to drive change in practice. As risk-bearing entities, they provide the payment models and the influence and incentives that can affect uptake of chronic disease preventive services. Several interviewees highlighted the importance of data for payers. As one expert explained, “Payers have the data that can often drive adoption or uptake of programs and interventions.”

What is clinical preventive strategy?

Clinical preventive strategies are available for many chronic diseases; these strategies include intervening before disease occurs (primary prevention), detecting and treating disease at an early stage (secondary prevention), and managing disease to slow or stop its progression (tertiary prevention).

Why are hospitals paid to treat?

Currently, most providers, including hospitals and physicians, are paid to treat rather than to prevent disease. Payers have the potential to increase utilization of preventive services with value-based payment models and contractual requirements that include reporting on preventive health quality measures.

Does the Department of Health and Human Services reflect the opinions of the authors?

The opinions expressed by authors contributing to this journal do not necessarily reflect the opinions of the U.S. Department of Health and Human Services, the Public Health Service, the Centers for Disease Control and Prevention, or the authors’ affiliated institutions.

Is primary prevention excluded from the discussion?

Although primary prevention was not excluded, much of the discussion focused on secondary and tertiary prevention related to health care system interventions and community interventions linked to clinical services. Throughout the interviews, the participants were encouraged to draw from their experiences with organizations of various capacities and not to focus only on high-level performers or models that would be difficult for average organizations to adopt and replicate. Each interview was conducted via teleconference and facilitated by the first author (S.L.), a senior scientist with expertise in qualitative research methods.

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