What Are the Provisions in the New Law for Containing Costs and How Effective Will They Be?

Source: Stephen Zuckerman, Urban Institute, August 01, 2010

From the abstract:
Policymakers are trying a wide array of approaches in an attempt to control costs, including competition among health plans, taxes on high-cost plans, delivery system and payment reforms, wellness programs, and controls over Medicare provider payments. The law also creates a board that can directly influence Medicare payments and make recommendations to the private sector. Based on the CMS actuaries, these efforts should allow for a significant expansion in coverage without an acceleration of costs. However, we will not know for if the health reform provisions actually result in slower cost growth and avoid the need for stronger measures.

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