Without reform, health costs will double

Without health reform, premiums and deductibles for Vermonters with employer provided insurance will nearly double by 2016, according to a new VPIRG report.
VPIRG attributes these high costs to wasteful health spending and the insurance and pharmaceutical industries that profit from it.
“At a time when our state legislators and Governor are debating cuts to critical health assistance programs, our research found over $1 billion in wasted cash and profit within our health care system,” said Susan Baker, VPIRG’s health care advocate. “Our leaders should be cracking down on insurance companies first, instead of balancing the state budget on the backs of our most vulnerable neighbors.”
The report estimates that $1,256,000,000 of Vermont’s health care spending fuels profits for these industries without delivering better health care for patients, including:

$621,780,000 a year spent on unnecessary medical care that actually leads to worse patient outcomes.
An estimated $101,736,000 more in red tape due to bloated insurance company bureaucracy.

To reduce the inflated cost of health care, VPIRG recommends cracking down on drug companymarketing, reining in insurance industry red tape, and reforming provider payment to encouragemore effective medical care.
“This year, a new state legislature, President and a new Congress all have the opportunity to passbroad health reform that tames the waste, inefficiency, and skewed incentives that drive up ourhealth care costs,” noted Baker. “Vermont families can’t afford to miss this opportunity.”
Read the full report >>>

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