No ‘magic formula’ for containing health care costs

Jan. 24--No magic formula exists for lowering health care costs in the United States.

Instead consumers, providers, insurance companies, businesses, and communities will have to work together if costs are to be contained and if the U.S. rate of spending for medical care is to be brought closer in line with that of other developed nations in Europe and Asia.

And, that process is likely to require not just years but decades of attention.

That message was shared with local business leaders at the Gaston Regional Chamber of Commerce's monthly Good Morning Gaston breakfast on Thursday by F. Del Murphy Jr., vice president of strategy and business development for CaroMont Health.

Here are some highlights from Murphy's presentation:

Rising Costs:

--The United States spent $27.2 billion on health care in 1960. By 2017, that figure had risen to $3.5 trillion.

--In 2017, $275 billion was spent on health care administration, more than 10 times the total cost figure for 1960.

--The per capita health care cost for the U.S. in 2017 was $10,028, roughly double what is spent on health care in Western Europe and Asia.

What Determines How Long We Live and How Well We Live?

--40 percent -- Our behavior, including diet and exercise

--30 percent -- Genetic disposition, the things -- good and bad -- we inherit from our parents

--15 percent -- Social circumstances, as in the economic and education levels of our parents

--5 percent -- Environmental exposure. Do we drink clean water? Do we breathe clean air?

--10 percent -- Health care services

Why are health care costs so high?

--Harvard University lists the overall pricing structure, administrative costs, and drug spending as the driving factors.

--Blue Cross and Blue Shield points to drug prices, chronic diseases, and poor lifestyle choices.

--The American Medical Association lists lacks of preventive care, chronic diseases, falls, pregnancy, and dental care as factors in high costs.

--Preventive medicine, that is procedures done in the hope of preventing lawsuits, is also cited as a contributor.

What can be done to bend the cost curve?

Murphy spoke of three primary areas:

(1) Creating a culture of wellness. Included here would be executive health programs, personal wellness programs, employee health programs, health fair screenings, group fitness classes, smoking cessation efforts, and the employment of wellness coordinators.

(2) Target high cost factors. This would be done by better chronic disease management, medication therapy management, the use of virtual physician visits via computer, and on-site and near-site health clinics for business and industry.

(3) Helping consumers optimize their health plans. This would include developing individual health and wellness plans and helping consumers become more savvy in navigating the health care system.

Murphy said a large part of his job at CaroMont is controlling costs, but he said it is essential that CaroMont continue to develop partnerships with employers and with the community -- partnerships aimed at prevention, early detection, and lifestyle changes.

Speaking of the daunting task of getting people to change their habits -- be they about diet, exercise, smoking, or alcohol use, Murphy said there are two types of pain: "the pain of discipline or the pain of regret."

Bill Poteat may be reached at 704-869-1855.

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