Future of health care financing
Innovative financing models for an evolving landscape
Discover a set of solutions for health care financing designed to help offset long-standing cost increases, as well as other persisting challenges. Our report provides a detailed exploration of next-generation financing solutions aimed at meeting the evolving needs of health care consumers.
Redefining health care financing: A call for innovation
In an era marked by rapid advancements in medical technology and escalating costs, innovative financing models in health care can be important. Our report delves into the challenges within today’s financing structures, analyzing approaches that are intended to better align with patient care, rising costs, and long-term health outcomes.
“Insurance,” by definition, is intended to protect against the risk of unforeseen accidents. But in health care, the definition of insurance is often different. The reality is that much of what health insurance covers consists of predictable, routine costs rather than just unforeseen emergencies. Separating predictable health care expenses from the unpredictable could allow the industry to redefine and refocus insurance.
To address pressing issues—cost predictability, managing rising expenses, affordability, and industry efficiency—we propose a multifaceted strategy. These potential solutions include extending the duration of health insurance policies, implementing savings-plus-insurance financing vehicles, and enhancing risk management through shared risk pooling.
Potential solutions for a new era of health care financing
As we examine the complexities of health care in modern society, it’s evident that traditional models will likely need to evolve. The following solutions propose a series of strategic adjustments aimed at improving the affordability, accessibility, and effectiveness of health care financing in response to current challenges:
- Longer-duration policies
- Savings and insurance financing vehicles
- Shared risk pooling
- Multi-line insurance offerings
- Personal health incentives
- Societal consistency
View the full report to examine solutions intended to address challenges in today’s ecosystem.
Transitioning to the future of health care financing
The solutions proposed in this report represent a paradigm shift from the existing models as our society accelerates toward the Future of Health™. Such a significant transformation will likely necessitate close collaboration among all stakeholders, as well as thoughtful transition strategies to mitigate potential disruptions during implementation. The following key transitions should be considered:
- Adjusting the definitions of “insurance” and “risk”
- Transitioning to longer-duration policies
- Adapting health care savings vehicles
- Public programs policy
