The CDHP Premium Difference

Individuals switch to consumer directed health plans (CDHP) in an effort to save money, and to have an insurance plan that accurately reflects their risk aversion and actuarial value. Such plans are cost effective for individuals with low risk of catastrophic (high cost) events because the plans are generally offered in connection with higher deductibles … Continue reading


Aligning the Incentives of Patients and Insurers

A cause of increasing health care costs is the three-player game between patients, providers, and insurers. Patients interact with providers at the time of service, deciding which service to provide. Insurers interact with providers after the service has been performed to supply payment. Patients interact with insurers regularly to pay premiums. Thus, patients do not … Continue reading


Physician Owned Hospitals: Specialization Breeds Efficiency, Regulation Stifles Innovation

Physician owned hospitals (POHs) are an innovative solution to inefficient, clunky, expensive hospitals that plague the health care system today. The idea behind POHs is essentially the specialization argument: why not have people familiar with an industry manage the details of that industry? POHs are known for their top-notch quality and patient satisfaction, and they … Continue reading


The Fraudulent Few Escalate Costs of Federal Entitlements

Medicaid and Medicare fraud are lucrative temptations for criminals that balloon healthcare costs for the majority of payers by hundreds of billions of dollars. A few unscrupulous physicians commit fraud by billing Medicaid/Medicare programs for services, drugs or supplies that are unnecessary, not performed, lower quality, more costly than what was actually performed, or that … Continue reading