Who will Pay for Medical Innovations? Reflections on Moody’s Analysis

Jane Sarasohn Kahn

First published 2/18/11 on Health Populi

“Employers and health insurers, through benefit design and medical management, are now playing a larger role in curbing use of healthcare services….spurring a more permanent cultural shift in consumer behavior,” Moody’s writes in a special comment dated February 16, 2011. “This will continue to constrain healthcare demand even as the economy recovers.”

The chart illustrates one of the main reasons for the so-called “constrained healthcare demand:” increasing costs on health consumers.

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