Challenges in Containing Health Care Costs Essay - 1

Challenges in Containing Health Care Costs - Essay Example payments to Medicare Advantage plans will be reduced or how pharmaceutical companies will have to pay rebates to Medicaid plans, among other revenue-generating schemes (Cutler, 2010, p.1131). The question that begs to be addressed, however, is whether they will suffice. Cutler raised the feasibility of the cost reduction requirements, stressing that it is difficult to sustain (p.1131). He pointed out, for instance, how some reductions can only be made once such as how "overpayments" cannot be eliminated twice. It is clear, hence, that there is a need for an effective savings scheme that is consistent and long-term in scope. One of these is the elimination of unnecessary expenditures incurred in erroneous medical practice. According to Chiapelli (2010), medication errors, particularly in the area of patient safety issues affect 1.5 million people and incur billions of dollars in expenses (p.56). In order to treat patient infections resulting from erroneous practices, for instance, an estimated figure of $30 billion is already incurred every year (Scott 2009). Addressing this challenge, thus, can yield huge potentials in terms of savings and the realignment of resources, wherein funds are allocated to areas that need it the most. The current strategies involves variations of mandatory and voluntary regulations such as those implementing process measures, the use of information technology, attention to hygiene, along with performance measures and standards of safety in patient care. Then, there are also mechanisms in place that monitor, maintain, evaluate and improve medical practices. These include public quality reporting and performance benchmarks, including those requirements and evaluation tools in approaches such as incentives-based or pay-for-performance schemes. It is imperative that policymakers are aware of this strategy, especially the benchmarks and their results because they will effectively inform decisions that make public policy. The information