From reducing administrative burden to improving coverage, the MHA champions policies that make healthcare more affordable while preserving access to care.
Hospitals share a commitment to keep their communities healthy by reducing costs and maintaining access to care.Â
There are a variety of factors influencing rising healthcare costs. Hospitals absorb many of these rising costs from other areas of the industry. Below are several of the leading cost drivers.
Rising costs and cuts to federal funding are creating a more difficult environment for hospitals nationwide and in Michigan. Michigan hospitals are mindful of these challenges, with the following items illustrating how hospitals are operating in this environment.
Source: *RAND Hospital Price Transparency Study
There are a variety of potential solutions that can have a meaningful impact on patients and their out-of-pocket costs. Hospitals are actively engaged with lawmakers in a nonpartisan fashion to identify and advocate on policy that can implement these solutions. Hospitals are also willing partners with the business community and other stakeholders in this work. Â
Michigan needs state government to support pro-business policies that reject government mandates, attract talent to Michigan and maintain existing state funding for hospitals and healthcare providers.
Enforcing prompt pay from insurers, mandating payment for care after prior authorization is required, reducing red tape and eliminating frivolous lawsuits are all examples of waste within the system that can remove unnecessary costs.
Ever-increasing drug prices are squeezing patients and providers. Allowing innovative state purchasing of drugs, cracking down on Pharmacy Benefit Managers, eliminating the single Preferred Drug List to increase access to lower-cost generic options and requiring drug companies to invest in Michigan are all ways to lower the overall cost of prescription drugs.
Increasing options for businesses can help address Michigan having the highest average annual employer-sponsored premiums in the Midwest. Options include pursuing a state-back reinsurance pool and allowing association health plans.
Reducing the reliance on the hospital emergency department and inpatient care will have a long-term impact on overall costs. Ways to incentivize healthy behaviors for Michiganders include implementing state-based health savings accounts (HSAs) to complement federal HSAs, appropriately fund preventative health services and embrace Food as Medicine programs.
Phone: (517) 703-8601
Fax: (517) 703-0628
