A Big Step in Controlling Health Care Costs

In order to proactively keep costs down within the health insurance plans being offered through the health insurance exchanges, insurers are proposing that the providers accept lower payments for services rendered. Insurers are proposing that the providers grant discounts from what they are usually paid and in return they are expected to make up the difference in obtaining more patients because there will be a smaller network of providers offered by those plans within the exchanges. Some providers are reluctant to accept a lower price structure. Tenet Healthcare Corp., which is recognized as one of the largest hospital providers has already signed some contracts agreeing to this newly defined price structure with some of their hospitals in order to do their part in health care reform. They believe there is a market for this and it’s important that they play a role in it.

Many consumers looking to satisfy the insurance requirement next year will approach the Health Insurance Exchanges called Covered California that will officially open in the Fall. They will be looking for lower priced options. If they will get a lower price by accepting a smaller network of providers, they are willing to do so. Finally addressing the cost of care is the most important key element in the successful implementation of total health care reform within the Affordable Care Act. This is a positive step in the right direction and an contributing example of how working together, we can create a sustainable health care system.

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