WASHINGTON (Dec. 14, 2018) — The National Association of Insurance Commissioners (NAIC) released the executive summary today for a report series titled Rising Health Care Costs: Drivers, Challenges and Solutions. The first report, released with the executive summary, is titled Food is Medicine: Why Healthier Eating Should Be a Priority for Health Care Providers, Insurers and Government. The report focuses on the importance of nutrition.
Consumer health care expenses are the largest share of household spending, according to the Kaiser Family Foundation. Those expenses rose 3.9 percent in 2016, surpassing the average rate of growth of 2 percent from 2008 to 2015.
"As president of the NAIC, examining the drivers of rising health care costs is an important part of my key initiatives," said Julie Mix McPeak, NAIC President and Tennessee Commissioner of Commerce and Insurance. "Health care expenditures have climbed steadily over the past half-century. They’re consuming greater portions of the family and public budgets. Left unchecked, health care spending may become an unsustainable burden."
The NAIC’s Center for Insurance Policy and Research (CIPR) study brings together thought leaders, researchers and practitioners in the health care field to offer varying perspectives on this important issue. McPeak authored the executive summary.
This initial CIPR report will be followed by six more focusing on:
- The underlying factors driving health care costs
- Regional cost variations
- The rise of prescription drug prices
- The growing acceptance of value-based reimbursement
- Administrative costs
- The role of data analytics in the health care system
Health care costs have been a key issue for McPeak and the NAIC during her term as the association’s president. The NAIC hosted two major events on cost drivers in 2018 – an Insurance Summit keynote conversation featuring McPeak and a CIPR event during the NAIC’s 2018 Fall National Meeting, which McPeak hosted and moderated.