States Advance Healthcare Affordability Amidst Uncertainty
Last Updated December 19, 2024
Amidst uncertainty about how federal health policies will evolve in the next four years, states continue to lead the charge to improve healthcare affordability for their residents and their employers. For individuals, high healthcare costs create financial hardships and force difficult tradeoffs. For employers, the rising cost of health insurance is outpacing wage growth and inflation. While federal policy has an important role to play, states are actively pursuing action to improve healthcare market functioning and push back against unsustainable price increases.
State policymakers also face realities that the federal government does not—namely, the requirement to balance their budgets. As healthcare comprises at least a third of most state budgets, states are particularly motivated to understand their healthcare markets, uncover sources of spending, and propose solutions that work for their communities.
As a healthcare philanthropy focused on addressing drivers of healthcare spending, we are funding state efforts to advance sustainable healthcare spending. The Peterson-Milbank Program for Sustainable Health Care Costs has supported states as they establish healthcare spending as a priority, while implementing and managing against cost growth targets, which help states shine a light on where healthcare dollars are spent and what is driving this spending.
Meanwhile, our partner, One Utah Health Collaborative, and Utah Governor Spencer Cox’s office recently adopted the Utah Model of Care, an innovative, data-driven care delivery model designed with stakeholder input to meet the unique needs and values of their community. Utah’s initiative will create critical infrastructure to collect, analyze, and share health spending data to create stakeholder awareness and engagement about drivers of costs in Utah.
Finally, we are enthusiastic about how the Employers’ Forum of Indiana (EFI) has harnessed the power of purchasers, created a strong evidence base—including the Sage Transparency hospital price data tool, and engaged stakeholders to advance healthcare affordability. Through its coalition-based approach, EFI has built support for legislation that has increased data access for purchasers and promoted greater healthcare competition in Indiana.
When it comes to tackling healthcare affordability, the stakes are high, and the consequences of inaction too great. That’s why we are working to foster state and federal solutions to improve the trajectory of our healthcare spending. We invite you to join us in this work to deliver a more effective and affordable healthcare system for all.
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