Health care costs are out of control. National health care spending has grown from 9% to almost 20% of the US economy since 1980, consistently growing significantly faster than gross domestic product (GDP). Poor quality and suboptimal care regularly account for at least 35% of care and up to 50% of total medical spend. This problem isn’t new, but it’s getting worse as insurance continues to get more expensive. It’s bankrupting our nation’s individuals, families, businesses, and government.
As The Wall Street Journal reported, 2023 was the most expensive year to date for individuals paying for health insurance coverage, and 2024 is likely to be worse. See Figure 1 in the report for more detail, and take note that the average annual contributions for family coverage total almost $24,000, an increase of 7% over the prior year.
As costs climb ever faster, leaders and individuals alike shake their heads in dismay, seemingly saying, “We can’t do anything about this because it’s just too complicated.” But in this paper, we demonstrate why that’s not the case. The thing is, we can do something about it.
This report provides a roadmap for innovators and governments seeking to create a healthier and more solvent future for the nation. It spells out how they can leverage Optimal Care business models to unseat incumbent health insurers, transform the industry, and solve the systemic health care cost inflation problem.
