Spending in health and medical care is significantly high. The diverse measures aimed at minimizing costs of healthcare, such as reduction in prices do not seem sufficient in reducing healthcare expenditure during the long run. In this case, it is vital to impose changes to the prevailing government economic regulations to facilitate in limiting the economic impact of the rising health and medical care expenditures.
The changes that need implementing should first entail promoting payment rates that focus on meeting global targets. It would be vital to support an independent council that comprises of payers, providers, consumers, businesses, and economists who would institute and enforce expenditure targets aimed at containing the costs (Lee, 2017) . For the federal government, it should emphasize on awarding grants to states with the goal of encouraging self-regulation. The states can adopt the model, such as starting with hospitals, one at a time. For example, to ensure that the states receive the grants, they should ensure that they report measures of access, quality, and costs, while the ones that perform high receive bonuses (Sullivan, 2018) . In this vein, care providers would realize efficiency in their operations.
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Utilizing competitive bidding for diverse healthcare commodities would assist in limiting economic impacts of rising health and medical spending. Experts argue that the prices associated with different products, including medical devices and equipment, are excessive. In this perspective, rather than the government setting prices, it should allow market forces to dominate. In this manner, suppliers and manufacturers would compete thereby leading them to charge lowest prices. For instance, Medicare can consider expanding competitive bidding when it comes to prosthetics, equipment, supplies, and orthotics in all regions (Sullivan, 2018) . Furthermore, insurance companies should provide tiered plans to address the issue of market dominance. Tiered providers would offer high quality and reduced costs, hence minimizing spending among patients that seek services from the providers (Cohn, 2014) . Following these measures would contribute greatly to limiting the economic impact on rising health and medical care expenditure.
References
Cohn, J. (2014). The paradox of reducing health care spending. The Milbank Quarterly, 92 (4), 656–658.
Lee, K. J. (2017). Here’s how to reduce healthcare costs. Retrieved from http://www.medicaleconomics.com/medical-economics-blog/heres-how-reduce-healthcare-costs
Sullivan, T. (2018). 11 ways to reduce healthcare spending. Retrieved from https://www.policymed.com/2012/10/a-systemic-approach-to-containing-healthcare-spending.html
