Issue Background

The Cost of Medical Care

Issue Resources

White Paper | NAHU's White Paper on healthcare cost containment, adopted June 2015

Containing the Cost of Medical Care | An overview of NAHU's overall ideas for containing soaring medical care costs.

Containing Costs Through Transparency | NAHU's position statement on how to use transparency to contain healthcare costs.

NAHU White Paper | Defining Accountable Care Organizations (ACOs) and how they mitigate the cost of healthcare.

NAHU’s Comment Letter on Wellness Programs | NAHU provided detailed commentary on the proposed Wellness Program Regulation.

A Bipartisan Rx for Patient-Centered Care and System-Wide Cost Containment |  In April 2013 the Bi-Partisan Policy Center published a paper that examines the underlying drivers of healthcare costs in America. The paper also outlines several long-term, cost-saving proposals that aim to strengthen the United States healthcare system.

NAHU's Did You Know Video? on Cost Containment and Price Transparency | A brief video by NAHU's Education Foundation highlighting the lack of medical care price transparency in the U.S. and its impact on overall medical care costs and quality.

Healthcare in the U.S. is expected to consume one out of every five dollars spent in the country by the end of the decade. The increased cost of healthcare is crowding out spending both in the public and private sectors and is not only a concern on the national level, but increasingly for individuals, families, and business who struggle to afford the skyrocketing costs of paying for both health insurance and out-of-pocket healthcare expenses. Reducing the rate at which healthcare spending is increasing each year, or “bending the cost curve,” must be a central goal to any healthcare reform strategy. 

Constraining skyrocketing medical costs is the most critical—and vexing—aspect of healthcare reform. By far, the greatest barrier to accessing health insurance coverage in America today is the cost of coverage. The cost of healthcare delivery is the key driver in rising health insurance premiums. Due to costly premiums, health insurance coverage is unfortunately beyond the reach of many Americans.

Healthcare cost containment is not a simple fix as there are multiple reasons behind why healthcare costs are skyrocketing. Addressing this massive societal problem requires a multitude of comprehensive actions both by individual citizens and their government. While the PPACA does make an attempt to control the cost of healthcare through incentivizing wellness programs, it does not go far enough. NAHU knows that health care costs can be further contained through promoting transparency, value-based and consumer directed purchasing models, and establishing entities such as Accountable Care Organizations (ACOs). Multiple programs must be enacted to fully realize the potential savings cost containment can bring to the average consumer purchasing coverage within our healthcare system.

NAHU supports legislation which establishes a demonstration program for value-based insurance design methodologies. We believe that a demonstration project can help spread and inspire cost saving insurance design elements to the rest of the private market.