Legislation on Cost Containment - Essay Example

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Since the 2010 health reform law explicitly mandated the creation and implementation of cost saving measures, there are numerous mechanisms and polices developed as a consequence. Some were built upon or improvements on previous measures while some were just recently introduced…
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Legislation on Cost Containment
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Download file to see previous pages This aspect is particularly relevant to state-level policymaking. No universal cost containment measure is adopted in the United States and, instead, states were free to pursue their own models, tailored according to their specific needs, targets and circumstance (e.g. political and economic). This is not really surprising because: 1) states have been active players in health reform; and, 2) the health reform law is full of state obligations as well as opportunities for state innovation (Teitelbaum, and Wilensky, 2012, p.180).
Back in 2003, the National Conference of State Legislatures (NCSL) Standing Committee released a white paper outlining possible cost saving ideas that state legislators could enact. These were composed of many possible ideas classified into nine categories, which include: direct cost containment; prescription drug ideas; cost shifting ideas; workforce expansion; health insurance reform; subsidy and uninsured care; medical error and medical malpractice; preventive and public health ideas; and, Medicaid ideas. The ideas were numerous and many states, thereafter, adopted an idea, a part of some or a combination of ideas for their own cost containment initiatives.
One of the most important of these ideas, in my opinion, is that framework that seeks to cut cost by addressing medical errors and medical malpractice. In the NCSL (2003) compilation, initiatives within this cost containment classification include the legislation of laws that will ensure the regulation of the payment for damages (VII-1); the elimination of frivolous lawsuits (VII-2); as well as the establishment of mechanisms to ensure quality and compliance to health and safety standards (VII-4, VII-5, V-II-6). The NCSL has provided a lean list of ideas in this particular area. But I think that this is one of the most viable models that could easily pass the process of legislation.
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