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A New Strategy to Slow Health Spending Growth by $2 Trillion and Improve Health System Performance

A set of policies designed to accelerate innovation in health care delivery could also slow health spending growth by $2 trillion over 10 years, according to a new report by the Commonwealth Fund Commission on a High Performance Health System. The report, Confronting Costs: Stabilizing U.S. Health Spending While Moving Toward a High Performance Health Care System, outlines policies to change the way public and private purchasers pay for care, encourage consumers to choose high-value care, and address the market forces driving up costs.

Estimates show that if the Commission's strategic approach is implemented soon, with public and private payers acting in concert, over 10 years federal spending could be reduced by $1.04 trillion, state and local government spending by $242 billion, and employer spending by $189 billion, compared with projected trends. Families could also realize significant savings—$537 billion over a decade—as a result of lower future health insurance premiums and out-of-pocket costs.

Read the report and view our interactive feature highlighting the new proposals and their potential impact on health spending and system performance.

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