Reinventing Health Care: The Role of the States

Source: David Osborne, Real Clear Politics, February 25, 2009

When the nation’s governors gathered in Washington this weekend, many were preoccupied with the largest, fastest growing category of their budgets: health care.

Unfortunately, none of the serious reform plans on the table in Washington attack the three core problems that drive health care inflation: a fee-for-service payment system that encourages waste; a medical system so fragmented that real management of costs is almost impossible and administrative overhead is 25-30 percent; and lifestyles that are creating an epidemic of chronic conditions like diabetes and heart disease.

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