Gov. Wolf offers U.S. Senate committee several ways to reduce health-care costs

March 07-- Mar. 7--In a nine-page letter to a U.S Senate committee chairman, Gov. Tom Wolf has offered several ways for the federal government to stymie rising health-care costs, such as embracing comprehensive coverage provided in the Affordable Care Act and addressing the "meteoric rise" in prescription drug costs.

"Health-care costs should be affordable, understandable and reliable," Wolf told U.S. Sen. Lamar Alexander, R-Tenn., the chairman of the Senate Committee on Health, Education, Labor and Pensions.

"Achieving these aims requires a twofold approach," Wolf wrote. "First, we must tackle the underlying costs of health-care delivery to allow for more affordable health-care coverage; and second, we must work to ensure patients can rely on predictable health-care costs and avoid unexpected health-care costs when possible."

In December, Alexander had solicited comments from various stakeholders in the health-care industry on reducing costs, ranging from governors to economists to insurers to doctors and nurses.

"I'm going to focus on making the system more of a market, getting rid of barriers and, if I could, find a way to make it possible for those of us who buy health-care services every day to know the price of what we're paying for," Alexander said in a statement he released at the time.

Citing the Centers for Medicare and Medicaid Services, Wolf wrote that if nothing is done to rein in costs, spending on health care is expected to reach $5.7 trillion by 2026, up from $3.5 trillion in 2017.

"Action to stem the tide is not only warranted," Wolf said, "it is our duty as public servants to cultivate a more affordable and sustainable health-care market for our fellow citizens."

To reduce health-care costs, Wolf recommended that Congress should maintain the coverage under the ACA so that Americans can pursue health maintenance rather than waiting to seek treatment until a crisis arise, and increase transparency so that people have enough information to make decisions about their health.

Wolf also urged the full transition from payments based on high volume to a value-based payment system based on quality of care; curtailing the rise in prescription drug costs; fostering competition among health-care providers; implementing "emerging technologies," such as telemedicine (where patients interact with doctors via live video), to reduce costs; and ending "surprise balance billing" for consumers who unwittingly seek medical care outside of their approved network, resulting in burdensome out-of-pocket spending.

Lastly, Wolf suggested Congress review facility fees charged for outpatient services.

"The federal government is best situated to take action to address facility fees through regulatory and legislative action, as states are limited in their authority over such an issue," Wolf wrote.

"We share the vital goals of providing quality, affordable health-insurance coverage while stemming the unsustainable growth of health-care costs," Wolf told Alexander, "and I hope that you find my feedback to be constructive in this regard."

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