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June 30, 2012 / George

Health Care Ruling Lets the System Evolve

Health Care Ruling Lets the System Evolve – Economic View – NYTimes.com.

What’s important now is how the health care sector will evolve under the new framework. And here, there are grounds for optimism. While the effects of the court’s Medicaid restrictions aren’t entirely clear, the law will certainly extend coverage to tens of millions who now lack it. In addition, new insurance exchanges will provide a broader array of care options. Increased competition tends to hold costs in check, even while enhancing service quality, and there’s no reason to expect the situation in health care to be different.

Many scholars have argued that private, nonprofit institutions like the Mayo Clinic are the most effective model of providing care, and not only because they can better coordinate across many specialties. They are also less likely than traditional fee-for-service practices to prescribe unnecessary tests and procedures. Given those advantages, such institutions, or ones that mimic them, might have spread even without health care reform. After all, employers have an interest in providing cost-effective care for their workers.

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