Tuesday, June 2, 2009

Is Health Care in Trouble?

President Obama has consistently called for dramatic health care reform. Most economists agree that if the health care system isn't fixed, it has the potential to drag down the entire economy. Check out this June 2009 report from the White House Council of Economic Advisors. It states,

"Health care expenditures in the United States are currently about 18 percent of gross domestic product, and this share is projected to rise sharply. ... is projected to reach 34 percent by 2040"

There is no arguing the need for reform. The debate seems to be what that reform will look like and how it will be paid for.

I recently read an article and one line burned into my brain. The author wrote, "America doesn't have a health care problem. It has a health problem." (I've searched high and low but cannot remember or find the source).

This may be a bit of an overstatement but the point it makes is clear.
1. Nearly 50% of Americans have at least 1 chronic disease.
2. Risk factors for chronic disease are largely preventable.
3. Chronic disease accounts for 75% of health care spending.

If you put 2 and 2 together, this translates as "75% of our health care dollars, or $1.5 trillion, can be saved by living well."

I appreciate the efforts to streamline medical care, insure the uninsured and promote electronic medical records to improve efficiency and save dollars. But that savings will not equal the $1.5 trillion that we have the power to save by making wise decisions.

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