Health care expenditures are expected to continue to rise rapidly over the next decade, outpacing income and imposing stress on families, businesses, and public budgets. Evidence indicates that the U.S. should be able to achieve savings and better value for this investment by creating more efficient and effective health care and insurance systems. This report reviews factors contributing to high expenditures and examines strategies that have the potential to achieve savings, slow spending growth, and improve health system performance. These strategies cluster into six areas: 1) increasing the effectiveness of markets with better information and greater competition; 2) reducing high insurance administrative overhead and achieving more competitive prices; 3) providing incentives to promote efficient and effective care; 4) promoting patient-centered primary care; 5) investing in infrastructure such as health information technology; and 6) investing strategically to improve access, affordability, and equity.
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