By Laura Etherton
As The Oregonian recently reported, hospital costs in Oregon reached a stunning $7.5 billion in 2008, a 40 percent increase since 2004.
For you and me, that translates to soaring insurance rates, deductibles rising from $500 to $5,000, and dismay at our out-of-pocket expenses. It also means that more people are having to drop coverage altogether. It's not sustainable -- not for families, not for taxpayers and not for businesses.
So, what do we do about it?
Solving the problem of soaring health care costs is a driving force behind reform efforts at the national level. Here in Oregon, the landmark health reform law passed by the 2009 Legislature puts reining in costs front and center. The fact is that right now, even as the national debate continues, Oregon officials are beginning to implement our state's home-grown health reform.
The state law can't begin to rival the scope of what's possible at the national level. But in our own way, and especially on lowering costs, Oregon has the chance to re-establish itself as a leader on health care. Here are three areas to watch, and weigh in on, this year:
First, cutting waste and improving care. It surprises most people to learn that we can cut costs in ways that improve the quality of care. But it makes sense when you consider how much cheaper and better it is to help a patient manage his heart disease, for example, than it is for him to be hospitalized with a heart attack. Similarly, cutting insurance paperwork saves money and frees up your doctor to spend more time with patients. And moving to electronic medical records means the emergency room doctor instantly knows what drugs you're allergic to.
Oregon's health reform law includes solutions like these to systematically cut waste, make smart use of new technology and best practices, and use prevention to keep people healthy.
Second, boosting purchasing power to negotiate a better deal for consumers. By pooling the purchasing power of consumers and small businesses, we can strengthen competition among insurance companies, and give the public more choices.
Oregon's health reform bill directed the new Oregon Health Authority to develop and recommend a plan for an "insurance exchange," a one-stop shop for health insurance. If the exchange is done right, consumers and businesses will have a wide range of plans to choose from, including a public option. And rules will require affordable packages with essential benefits and low out-of-pocket costs.
The details of Oregon's exchange aren't yet set. They'll depend on what Congress includes in national reform, what the Oregon Health Authority develops and what the 2011 Legislature enacts. Public input will be critical.
Third, watchdogging insurance and hospital costs. Health care spending is an enormous part of our economy, but we know startlingly little about where our money goes and what we're getting for it. Oregon's reform law changes that, requiring comprehensive reporting on health care spending.
In addition, the law sets fair ground rules to protect consumers and businesses from excessive health insurance premiums, and requires public disclosure of hospital capital costs.
Will Oregon's health reform law get results on costs? It depends on robust implementation this year, and a strong proposal for the 2011 Legislative session. Early indications are good. The entities charged with implementation and enforcement -- the Oregon Health Authority, the Oregon Health Policy Board and the Oregon Insurance Division -- have already begun to make good progress.
We urge Oregonians to get involved and urge strong implementation to rein in costs at every turn.
