Health Care Cost Summit: Solutions to Rising Health Care Costs Must Come
from Business, Providers and Individuals Working Together

On the one-year anniversary of the signing of the federal health care reform law, the North Carolina Chamber joined business leaders and health care providers together to discuss imminent changes to how states and companies will handle health care coverage. Nearly 100 people gathered at the Chamber’s Health Care Cost Summit, sponsored by Blue Cross Blue Shield of North Carolina, held March 23 at Duke University’s school of business.

Rising health care costs continue to be a top concern of North Carolina’s employers. Health care costs are 17 percent of the economy, but will soon rise to 20 percent, with employers paying for a majority of those costs. Many of the speakers contended that the federal law will allow more individuals to get coverage, but it doesn’t address whose paying for it or the rising costs themselves.

“Employer tax credits look good on paper, but don't amount to much when you look at actual cost of providing benefits,” said Skip Woody with Hill, Chesson, and Woody, referring to one provision in the federal law.

Market Solutions

Some companies and providers are being proactive by finding market solutions and initiating assertive wellness incentives into their plans.

“We sought more competition and collaboration among providers,” said Alan Cardinal with Delhaize, Food Lion’s parent company, noting they’ve flattened health care costs by implementing “medical tourism” among providers to compete for the best quality and cost. The company saved $750,000 in one year on lab testing through its initiative.

Valinda Rutledge, CEO of CaroMont Health in Gastonia, said her hospital announced their collaboration with BCBSNC this week for bundle payments – the first of its kind in North Carolina. The program partners the hospital with local employers and payers to institute cost-effective initiatives that cover both hospital and physician services for a full episode of care.

Future of Health Reform Law

While the future of the federal law is uncertain – more than 20 states have active lawsuits challenging the constitutionality of parts or all of the law – the law will most likely remain intact, according to speaker Caroline Pearson. One provision, the individual health insurance coverage mandate, may be struck down by the courts, but that won’t be known for at least another year. Also, bi-partisan support exists in Washington, D.C., to get rid of the burdensome 1099 tax reporting mandate in the law, which will likely happen this year.

Be Proactive – Join Our Health Care Coalition

Join the North Carolina Chamber’s health care coalition today! Email info@ncchamber.net to join and submit your ideas on reining in health care costs at our Think Jobs! website.

The other topics and presenters for the day were:

·         Research and analytic support on federal and state health reform issues: Caroline Pearson, Senior Manager Avalere Health (Washington, D.C.)

·         Panel Discussion: Improving current mechanisms for health care delivery and financing with or without health care reform: Secretary Keith Crisco, NC Secretary of Commerce; Ms. Valinda Rutledge, CEO CaroMont; Dr. Don Bradley, CMO BCBSNC

·         What can employers do to manage rising medical costs? Alan Cardinal, Vice President Benefits, Retirement, HRIS, Compensation and Wellness, Delhaize

·         Cost and Care: Where does the money come from? Where does it go? Dr. Kevin Schulman, MD, MBA, Professor of Medicine and Business Administration, Duke University School of Medicine and The Fuqua School of Business

·         Panel Discussion: How can employers, providers and insurers build a system that is sustainable and improves quality? Dr. Jack Walker, Executive Administrator, SHP; Bill Atkinson, CEO Wake Health System; Skip Woody, Partner, Hill, Chesson and Woody