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Michael Roizen, M.D.

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A Three-Step Plan To Lowering Health Care Costs

Posted: 08/02/11 09:17 AM ET

Throughout the recent budget deficit dialogue, there is one issue that needs to remain at the top of the agenda -- health care spending.

There is a reason why the U.S. spends two- to four-times more on health care than European and Asian countries -- chronic disease. The rising cost of chronic disease is crippling the federal budget and drastically impairing our ability to compete in this global economy. According to the Centers for Disease Control and Prevention, treatment of chronic medical conditions makes up more than 75 percent of the nation's $1.4 trillion medical expenditures and they account for 70 percent of all deaths in the United States. We believe that these chronic diseases are caused by four controllable factors: tobacco use, food choice, portion size and physical inactivity. With growing evidence that some chronic diseases can be reversed by making lifestyle changes, we can make a significant impact on the rising cost of Medicare by encouraging personal responsibility and adopting healthier lifestyles.

As both a health care organization and Northeast Ohio's largest employer, with mor frese than 40,000 employees, Cleveland Clinic sees firsthand the physical and financial damage brought on by chronic disease. To combat those issues, we've developed and invested in comprehensive wellness programming for our employees. Studies have shown that for every $1 spent on wellness, companies can realize nearly $3 in health care savings. We've also witnessed a return on our investment by creating a wellness-focused culture, striving for lower absenteeism, higher productivity and generally happier employees.

We can no longer afford to debate on whether the rising cost of Medicare is sustainable; rather, we must commit to making real change and inserting accountability in our collective approach to managing the Medicare budget. At Cleveland Clinic, we believe we have begun to make real inroads in managing chronic disease, encouraging personal responsibility and lowering cost -- both with our patients and employees. Here are some of the elements included in our approach:

1) Change the Culture: We've consistently emphasized in nearly all of our employee, patient and public communications the urgency and impact of the rising cost of health care, the effect of these costs on jobs, the major contributors and the impact they have on quality of life, as it relates to chronic disease. This helped initiate change.

2) Change the Environment: Change the environment to make it easier to stay healthy. Mayor Michael Bloomberg's actions in New York City show such changes are possible in a large city for food choices. In our own community of Cuyahoga county, we have seen a decrease in cigarette usage from 26.5 to 15 percent in three years by collaborating with our local government and implementing policies that restrict smoking in public places. Changes to the environment help to make the changes more substantial and sustained. Within our organization, we have also implemented many more environmental changes to encourage healthier lifestyles including: banning trans fats on our campuses, making food labels more transparent, removing unhealthy foods and sugared beverages from our vending machines and cafeterias, providing free access to our campus fitness centers, and encouraging stress management programs and yoga for employees. This helps sustain changes employees are making in their personal lives.

3) Use Incentives: At Cleveland Clinic, we use positive incentives to encourage lifestyle change and personal responsibility through our Employee Health Plan (EHP). Employees can earn rebates if they receive positive health tests annually. In the Medicare system, premiums could be increased but 100 percent rebated if certain key metrics were met by beneficiaries, or if a doctor agrees that a patient is doing all things possible to achieve positive lifestyle changes. This would begin to move us to a more individualized, performance-based Medicare system.

By implementing these changes, Cleveland Clinic has seen results. Nearly 20,000 employees have enrolled in at least one EHP-sponsored wellness program. Almost 50 percent of Cleveland Clinic employees with chronic diseases that can be controlled through lifestyle modification have chosen to participate in our coordinated care programs -- nearly triple our original target. Additionally, employees have utilized free gym memberships and weight management programs, resulting in an estimated loss of more than 211,000 pounds.

By mirroring a similar program at the federal level, we could see significant savings and reduce the cost burden on all taxpayers. Employers would also benefit from a drastically reduced Medicare cost, while also ensuring the sustainability of the program long term.

We should stop making this a partisan issue and focus on the true benefit of changing the health care system -- creating a healthier, more competitive and fiscally sound country, starting with individual accountability.

 
 
 

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Throughout the recent budget deficit dialogue, there is one issue that needs to remain at the top of the agenda -- health care spending. There is a reason why the U.S. spends two- to four-times mo...
Throughout the recent budget deficit dialogue, there is one issue that needs to remain at the top of the agenda -- health care spending. There is a reason why the U.S. spends two- to four-times mo...
 
 
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04:47 PM on 08/22/2011
Chronic disease costs are definitely climbing higher and higher. For most people, they can only afford so much and cannot afford these high priced medications and treatments. This is why Good Days from Chronic Disease Fund was created. We want patients to have good days again and not be burdened by financial dilemmas. By supporting our organization, you could help these patients too. http://www.gooddaysfromcdf.org/
02:59 PM on 08/04/2011
In my wordpress kappello blog I put forth a plan that gets insurance and government out of the way totally. Have no insurance companies, no insurance period, have a sliding scale fee, have lots of clinics, small hosptials, preventative care and charity funds in each clinic etc..., as well as upscale concierge private doctors and this way everyone has access, and care.
04:27 PM on 08/03/2011
The AMA is committed to identifying opportunities to achieve better value for our health care spending. There is a role for everyone – patients, physicians, insurers and policymakers - to play in bending the health care cost curve while improving the quality and coordination of care. Reducing the burden of preventable disease through a renewed focus on prevention and wellness is an important step. More than 75 percent of our nation’s health care spending is for the treatment of chronic, often preventable conditions that can be avoided by making healthier lifestyle choices. Obesity and its health complications alone cost over $270 billion annually. Lifestyle changes can make a significant difference in reducing these costs to our nation and improving the health of individuals. Physicians can help patients take steps that will make lasting changes – allowing them to lead healthier lives and reducing the burden of preventable disease on our health care system.
www.ama-assn.org/go/healthcarecosts
www.ama-assn.org/go/healthierlifesteps
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03:34 PM on 08/03/2011
The fundamental premise of this article is flawed.. "There is a reason why the U.S. spends two- to four-times more on health care than European and Asian countries -- chronic disease" That would imply that we have 2 to 4 times the number of people with a chronic condition?

Up to 40% of the EU population aged over 15 reports having a long standing health problem and two out of three people who have reached retirement age have at least two chronic conditions.

The primary reason that our health care system is so expensive is because we pay for piecemeal and procedures vs keeping people healthy. In both cases chronic conditions will bankrupt the systems and perhaps the country but "blaming" people for being ill is hardly the approach to change I would advocate for.

There is no question that employers can play a critical role in improving the health but over the long term it is actually more expensive to have people live longer so don't assume that this alone will drive down costs for the larger community.. What has to change is the payment system.
08:41 AM on 08/03/2011
This is a wonderful idea for companies of all kinds...but its benefits will of necessity be restricted to adults of working age, and maybe their families if the policy can be stretched that far. The problem with present-day Medicare expenditures, though, is that most participants are not employed, being either over 65 or disabled. Maybe the Cleveland Clinic could initiate a program for cost control in these people: use of older, cheaper medications in preference to heavily-advertised "me too" drugs, advance directives to help more people avoid spending their final days literally tied to an intensive-care bed, and financial incentives for doctors to provide necessary medical care in preference to areas like cosmetic procedures and sports medicine.
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09:42 AM on 08/02/2011
The vision of turning drudges into happy drones is ludicrous. Here's something better: start implementing stem cell and gene therapy treatments, which will eliminate chronic diseases, and not try to mask them with silly nonsense.