TABLE 11-6Projected Annual National Savings from Selective Copayment Reduction for Five Common Chronic Conditions

DiseaseAnnual National Expenditure (excluding Medicaid) in BillionsaAnnual Savings from VBID Across a Range of Relative Savings Estimates, in Billions
1%2.5%6%
Heart disease$71.99$0.72$1.80$4.32
COPD/Asthma$44.22$0.44$1.11$2.65
Hypertension$43.65$0.44$1.09$2.62
Diabetes$41.83$0.42$1.05$2.51
Hyperlipidemia$25.34$0.25$0.63$1.52
Total$227.04$2.27$5.68$13.62
a

Recent nonoverlapping national estimates of total healthcare expenditures associated with different chronic conditions can be obtained from the Agency for Healthcare Research and Quality’s 2006 Medical Expenditure Panel Survey (AHRQ, 2005b).VBID plans are unlikely to be implemented by public plans that have very little cost sharing, such as Medicaid; thus Medicaid’s contribution to overall health spending for these conditions should be excluded from national expenditure estimates. Disease-specific estimates, less Medicaid expenditures, for those conditions for which relative cost savings were generated above are presented here.

Recent nonoverlapping national estimates of total healthcare expenditures associated with different chronic conditions can be obtained from the Agency for Healthcare Research and Quality’s 2006 Medical Expenditure Panel Survey (AHRQ, 2005b).VBID plans are unlikely to be implemented by public plans that have very little cost sharing, such as Medicaid; thus Medicaid’s contribution to overall health spending for these conditions should be excluded from national expenditure estimates. Disease-specific estimates, less Medicaid expenditures, for those conditions for which relative cost savings were generated above are presented here.

From: 11, Payment and Payer-Based Strategies

Cover of The Healthcare Imperative
The Healthcare Imperative: Lowering Costs and Improving Outcomes: Workshop Series Summary.
Institute of Medicine (US) Roundtable on Evidence-Based Medicine; Yong PL, Saunders RS, Olsen LA, editors.
Washington (DC): National Academies Press (US); 2010.
Copyright © 2010, National Academy of Sciences.

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