California is the latest state to address healthcare affordability through cost growth targets. Elizabeth Mitchell – President and CEO of Purchaser Business Group on Health – Joins us to discuss the nuts and bolts of the 3% cost growth target recently adopted by the state. Healthcare affordability is a big issue across the country. More than half of us skip or postpone care due to cost and medical bills are a leading cause of bankruptcy. Reining in medical costs is also how we’ll free up resources for what we know works to build health in America: prevention, addressing the social drivers and fostering health in communities.

We discuss:

• Two proven strategies to reduce healthcare costs: advanced primary care and effective specialty referrals
• Why better consumer “shopping” is not the path to healthcare affordability
• How price transparency gives employers new tools to negotiate, and reveals troubling facts about purchasing intermediaries

Elizabeth reminds us how troubling it is that we don’t have clear prices in a sector that makes up 20% of the economy:

“The idea that you can't find out what something is going to cost before you agree to it is outrageous. Name any other industry that refuses to show you a price. It is incredible to me that we are still fighting about transparency when it is 20 % of the US economy. I mean, this is a multi-trillion-dollar industry who feels no accountability to show pricing. So, I just think it is incredible that we do not have meaningful transparency yet.”

Relevant Links

California’s Office of Health Care Affordability sets cost growth target

Federal hospital price transparency requirements

Purchaser Business Group on Health (PBGH) website

PBGH white paper on advanced primary care

US Department of Labor clarifies the fiduciary responsibilities of self-insured employers purchasing healthcare

About Our Guest

As President and CEO, Elizabeth Mitchell advances Purchaser Business Group on Health’s (PBGH’s) strategic focus areas of advanced primary care, functional markets and purchasing value. Mitchell leads PBGH in mobilizing health care purchasers, elevating the role and impact of primary care, and creating functional health care markets to support high-quality affordable care, achieving measurable impacts on outcomes and affordability.

At PBGH, Elizabeth leverages her extensive experience in working with health care purchasers, providers, policymakers and payers to improve health care quality and cost. She previously served as Senior Vice President for Healthcare and Community Health Transformation at Blue Shield of California, during which time she designed Blue Shield’s strategy for transforming practice, payment and community health. Mitchell also served as the President and CEO of the Network for Regional Healthcare Improvement (NRHI), a network...