In an effort to curb healthcare spending, some insurance companies have tried to increase copays for outpatient visits in an effort to decrease the overall rate of visits to the doctor’s office. However, a new study from Brown University published in the Jan. 28 issue of the New England Journal of Medicine is showing that this strategy has some unintended consequences. After looking at some Medicare managed care plans that implemented such copay hikes between 2001 to 2006, the researchers noted an increase in hospital usage. Although these plans had 19.8 fewer annual outpatient visits per enrollee, they consequently had 2.2 additional hospital admissions and 13.4 more inpatient days per 100 enrollees. And as we all know being hospitalized is PRICEY. The authors estimate that by increasing outpatient copays in the short term Medicare plans might save $7,150 per 100 enrollees, but inpatient spending would swell by $24,000 per 100 enrollees in the year after the co-payment increase, thus not really saving any money at all. [via Medline Plus]
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Dr. Steven Chang, the author of DailyDose, is a staff physician with Kosmix RightHealth. Dr. Chang practices Family Medicine at the University of California Davis Medical Center, where his medical interests include both pediatric and geriatric care, public health, gay and lesbian health, and sleep medicine. Dr. Chang trained at the Stanford University affiliated O'Connor Hospital, and was a research fellow at the National Institute of Health. He holds an M.D. from McGill University and a BA in Public Health from Johns Hopkins University.
January 29th, 2010 at 7:32 am
reasonable co-pays for outpatient services prevent unecessary hospitalizations inasmuch as patients get professional opinions of the ills which concern them while at the same time prevents overcrowded emergency room visits. The problem being described and the suggested solution is an ill of Socialized medicine, where one who is not willing to pay a reasonable co-pay avoids it by an emergency room visit to save a few bucks. Most illnesses can be resolved by simple phonecalls as long as the advice rendered is substantial enough to relieve the patiets angziety and guide him to a satisfactory solution. This approch can reduce the cost of health insurance while at the same time free up professional services to concentrate on real emegencies.
January 30th, 2010 at 5:41 pm
UNBELIEVABLE HOW MONEY GOVERNS ALL–DRAINING THE SICK THE HALT AND THE LAME–MANY SENIORS WILL BE UNABLE TO PAY DOCTOR AFTER DOCTOR-SPECIALISTS-X- RAYS-MRI’S IT WILL DRAIN THIER RESERVES TO SUCH A POINT THAT MANY WILL HAVE TO FOREGO IMPORTANT HEALTH CARE AND DRUGSTHE INSURANCE COMPANIES ARE THE COLOR OF GREEN-MONEY AND GREED.SURE THEY HAVE TO OPERATE IN THE BLACK BUT ON WHOSE BACK?
January 30th, 2010 at 8:57 pm
I for one agree with Ken. Also this of course will effect each one of us unless your dead.
January 31st, 2010 at 9:05 pm
I think we need health care reform. The insurance companies are the reason for the cost of Medicare. Old people will not get the care they need they will skip needed care because of the copays are going too high. I cannot afford the high cost of Medicare supplemental insurance. We pay $96.00 a month for Medicre to cover 80% and the insurance companies want abot $225.00 a month to cover 20% what kind of deal is that?.We must get the same insurance that Congress gets. I know it is not free but we will get to pick between many policies.No insurance is free,bit it will be a lot cheaper with compition between insurance companies.
February 1st, 2010 at 8:34 am
Rocco, real healthcare reform would be when govt gets out of the business allowing insurance companies to compete across state lines and each state implementing reasonable tort reform to curtail medical liability. Just these two actrions would reduce costs and allow each individual to exercise his/hers self reliance and responsibility. Progressives in government are seeking ways to by-pass the constitution already and once that happens they will extend their powers over every phase of your life.