Are Budget Caps a Solution to Skyrocketing Health Costs?

Healthcare costs and access to health services continue to be major points of discussion. One proposed solution is that of budget caps. In a recent article, the authors discuss the impacts of budget caps in the United States. Although some benefits were identified, the authors also note possible patient harm if these programs with budget caps are poorly defined.

The authors remark, “Various strategies to address healthcare spending and medical costs continue to be debated and implemented in the United States. To date, these efforts have failed to adequately contain the growth of healthcare cost. An alternative strategy that has elicited rising interest among policymakers is budget caps. As budget caps become more prevalent, it is important to identify which features are needed to ensure success, both in terms of cost reduction and health improvement.” Read the article here.

(Source: Ciarametaro et al., Value in Health Journal, 1/27/21)