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AAHP President and CEO Talks About Rising Health Care Costs

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Written by U.S. Insurance News   
Monday, 17 November 2003
The Organization for Economic Co-operation and Development (OECD) reports the proportion of U.S. gross domestic product spent on health care reached 13.9% in 2001. The highest percentage spent from any other OECD nation was 10.9%. The Organization for Economic Co-operation and Development (OECD) reports the proportion of U.S. gross domestic product spent on health care reached 13.9% in 2001. The highest percentage spent from any other OECD nation was 10.9%.

The OECD report suggests prescription drugs, increased utilization of surgical procedures and new health technologies are drivers of these rising health costs.

“This is yet another reminder that we are facing an unprecedented crisis of rising costs and, as a result, rising uninsured. This unsustainable trend demands bipartisan action,” said AAHP President and CEO Karen Ignagni.

Pointing to health plans’ emerging tools and techniques for containing prescription drug spending, Ignagni encouraged Congress to look to private-sector innovation to restrain rising drug costs. She also urged policymakers to pay attention to the hidden drivers of rising health care costs. “Until we control frivolous litigation and stop adding costly and unnecessary mandates, we will never make the system more affordable. We need an open, accountable process that objectively evaluates new medical technologies before they are adopted into the practice of medicine.”

AAHP is partnering with physicians in New Hampshire and Iowa to make the issue of medical liability reform paramount in the upcoming presidential campaign. Grassroots distribution of literature, scheduling events and advertising are their focus.

The American Association of Health Plans (AAHP) is the largest national trade organization and represents more than 1,000 health maintenance organizations (HMOs), preferred provider organizations (PPOs) and similar health plans which provide health care coverage to over 170 million Americans.

 
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