Comments on: Interesting Wrinkles in New GIC Study http://www.pioneerinstitute.org/blog/news/interesting-wrinkles-in-new-gic-study/ Public Policy Research Mon, 30 Jan 2012 21:19:06 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Shawn Duhamel http://www.pioneerinstitute.org/blog/news/interesting-wrinkles-in-new-gic-study/comment-page-1/#comment-2339 Shawn Duhamel Tue, 14 Jul 2009 20:36:06 +0000 http://www.pioneerinstitute.org/blog/?p=971#comment-2339 This study does raise some interesting points, but I have to agree with Elaine. The real issue that must be addressed is the overall cost of health care. These other steps, while helpful in the short term, are simply stop-gaps. The one are where I may disagree here is over the issue of "greater numbers of more expensive customers" joining the GIC. From what we know so far, the risk across the public sector in MA is relatively the same community to community. If that holds true, then there should be no spike in cost to the GIC. Time will tell though. This study does raise some interesting points, but I have to agree with Elaine. The real issue that must be addressed is the overall cost of health care. These other steps, while helpful in the short term, are simply stop-gaps.

The one are where I may disagree here is over the issue of “greater numbers of more expensive customers” joining the GIC. From what we know so far, the risk across the public sector in MA is relatively the same community to community. If that holds true, then there should be no spike in cost to the GIC. Time will tell though.

]]> By: Elaine McGrath http://www.pioneerinstitute.org/blog/news/interesting-wrinkles-in-new-gic-study/comment-page-1/#comment-2264 Elaine McGrath Mon, 22 Jun 2009 16:15:28 +0000 http://www.pioneerinstitute.org/blog/?p=971#comment-2264 The study summarizes where the cost savings are - shifting the cost of insurance to Medicare, joining a larger risk pool and shifting from PPOs to HMOs. I don't think any of these address the cost of healthcare itself and I think that is where the real savings need to occur. This study points to Springfield just moving their costs to someone else and that to me, is not a solution. According to Trustees of the Social Security and Medicare trust funds, Medicare is predicted to go broke by 2017. The larger risk pool is absorbing the more expensive costs of Springfield members so I am not seeing real savings there other than to Springfield. What happens when greater numbers of more expensive customers join? There has to be a point where price starts creeping up. It is not clear what is driving the cost difference between HMOs and PPOs. If quality and access are comparable for less cost then perhaps this is a viable solution. The study summarizes where the cost savings are – shifting the cost of insurance to Medicare, joining a larger risk pool and shifting from PPOs to HMOs.

I don’t think any of these address the cost of healthcare itself and I think that is where the real savings need to occur. This study points to Springfield just moving their costs to someone else and that to me, is not a solution.

According to Trustees of the Social Security and Medicare trust funds, Medicare is predicted to go broke by 2017.

The larger risk pool is absorbing the more expensive costs of Springfield members so I am not seeing real savings there other than to Springfield. What happens when greater numbers of more expensive customers join? There has to be a point where price starts creeping up.

It is not clear what is driving the cost difference between HMOs and PPOs. If quality and access are comparable for less cost then perhaps this is a viable solution.

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