Let's Put Consumers in Charge of Health Care (HBR OnPoint Enhanced Edition)

Let's Put Consumers in Charge of Health Care (HBR OnPoint Enhanced Edition)
by Regina E. Herzlinger

Let's Put Consumers in Charge of Health Care (HBR OnPoint Enhanced Edition)
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Book Summary Information

Author: Regina E. Herzlinger
Edition: Digital
Format: Download: PDF
Published: 2002-07-01
ISBN: N/A
Number of pages: 12
Publisher: Harvard Business Review

Book Reviews of Let's Put Consumers in Charge of Health Care (HBR OnPoint Enhanced Edition)

Book Review: Consumer Control: An idea whose time has come...again
Summary: 5 Stars

The human & economic value of "consumer control" as a guiding light for efforts to put right a system that has gone very wrong is impossible to overestimate. This concept, whose origins are deeply rooted in the values of our nation, has served as the battle cry of the disability rights movement and is understood completely by anyone with a fraction of an ounce of business sense.
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Summary of Let's Put Consumers in Charge of Health Care (HBR OnPoint Enhanced Edition)

Businesses spend billions on health insurance. And what do they get for their money? A lot of unhappy employees. Workers fret about the quality of the care they receive, the burden of their out-of-pocket expenses, and the gaps in their coverage. For businesses, health care has become a lose-lose proposition: They pay way too much, and they get way too little. The problem is that the health care industry has been shielded from consumer pressure--by employers, insurers, and the government. As a result, costs have exploded even as choices have narrowed. But if companies embrace a new model of health coverage--one that places control over both costs and care directly into the hands of employees--the competitive forces that spur productivity and innovation in consumer markets can be loosed upon the inefficient, tradition-bound health care system. Moving to consumer-driven health care requires that companies revamp their health benefits in six ways: Give employees incentives to shop intelligently; offer a real choice of insurance plans; charge employees prices that accurately reflect the company's costs; let providers set their own prices; adjust payments for each enrollee based on need; and provide relevant information.
This is an enhanced edition of HBR article R0207B, originally published in July 2002. HBR OnPoint articles include the full-text HBR article, plus a synopsis and annotated bibliography. Businesses spend billions on health insurance. And what do they get for their money? A lot of unhappy employees. Workers fret about the quality of the care they receive, the burden of their out-of-pocket expenses, and the gaps in their coverage. For businesses, health care has become a lose-lose proposition: They pay way too much, and they get way too little. The problem is that the health care industry has been shielded from consumer pressure--by employers, insurers, and the government. As a result, costs have exploded even as choices have narrowed. But if companies embrace a new model of health coverage--one that places control over both costs and care directly into the hands of employees--the competitive forces that spur productivity and innovation in consumer markets can be loosed upon the inefficient, tradition-bound health care system. Moving to consumer-driven health care requires that companies revamp their health benefits in six ways: Give employees incentives to shop intelligently; offer a real choice of insurance plans; charge employees prices that accurately reflect the company's costs; let providers set their own prices; adjust payments for each enrollee based on need; and provide relevant information.

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