The Self-Care Economy: OTC Medicines in the U.S. Deliver Value to the Health System

Jane Sarasohn-Kahn

Posted 2/7/12 on Health Populi

U.S. health consumers’ purchase and use of over-the-counter medicines (OTCs) generate $102 billion worth of value to the health system every year. Half of this value accrues to employers who sponsor health insurance for their workforce; 25% goes to government payers (e.g., Medicare, Medicaid); and, 25% returns to self-insured and uninsured people.

For every $1 spent on OTCs, $6.50 is saved by the U.S. health system, shown by the chart.

For millions of health consumers, OTCs substitute for a visit to a doctor’s office: most cost-savings generated by OTC use are in saved costs of not visiting a clinician, as discussed inThe Value of OTC Medicine to the United States, published by the Consumer Healthcare Products Association in January 2012.

Continue reading “The Self-Care Economy: OTC Medicines in the U.S. Deliver Value to the Health System”

Health Spending in America – Self-Rationing Slows Cost Increases

Jane Sarasohn-Kahn

Posted 1/13/12 on Health Populi

The Big Headline under the banner of Health Economics this week is the statistic that growth in U.S. national health spending slowed to an anemic 3.9%  in 2010 — the slowest rate of growth in the 51-year history of keeping the National Health Expenditure Accounts.

Before American policymakers, providers, plans and suppliers pat themselves on their collective back on a job well-done, the heavy-lifting behind this story was largely undertaken by health consumers themselves in the form of facing greater co-pays, premiums and prices for health services — and as a result, self-rationing off health care services and utilization, which negatively impacts providers and suppliers alike.

Continue reading “Health Spending in America – Self-Rationing Slows Cost Increases”

How Patients Disclose Medical Diagnoses Online

Jane Sarasohn-Kahn

First posted 7/22/11 on Health Populi

Once upon a time, being diagnosed with the “C” word, cancer, was information that kept people quiet and within the family. Today, social media platforms like Facebook, Twitter and blogs have increasingly become routine settings for discussions regarding the most personal of concerns” — like health care, according to an analysis titled, Seeking Social Solace: How Patients Use Social Media to Disclose Medical Diagnoses Online from Russell Herder, a Minneapolis-based marketing & PR agency.

Average Annual Health Costs for a US Family of Four Approach $20,000, With Employees Bearing 40%

Jane Sarasohn-Kahn

First published 5/11/11 on Health Populi

Health care costs have doubled in less than nine years for the typical American family of four covered by a preferred provider health plan (PPO). In 2011, that health cost is nearly $20,000; in 2002, it was $9,235, as measured by the 2011 Milliman Medical Index (MMI). To put this in context,

  • The 2011 poverty level for a family of 4 in the 48 contiguous U.S. states is $22,350
  • The car buyer could purchase a Mini-Cooper with $20,000
  • The investor could invest $20K to yield $265,353 at a 9% return-on-investment.

Continue reading “Average Annual Health Costs for a US Family of Four Approach $20,000, With Employees Bearing 40%”

The Myth of Consumer-Directed Care

JANE SARASOHN-KAHN

Originally published 1/13/11 on Health Populi

The theory behind “consumer-driven health care” is that when the health care user has more financial ‘skin in the game,’ they’ll become more informed and effective purchasers of health care for themselves and their families. That theory hasn’t translated into practice, based on data from the Employee Benefits Research Institute’s (EBRI) latest Consumer Engagement in Health Care Survey.

Continue reading “The Myth of Consumer-Directed Care”

The Social Life of Pharmaceutical Companies

JANE SARASOHN-KAHN

Originally published on 12/07/10 on Health Populi here.

Exactly one year ago, health care companies, online portals (from Google to health advocacy sites), and advertising agencies serving the health industry convened in Washington, DC, to voice their positions to the Food & Drug Administration (FDA) concerning pharmaceutical promotion and social media. It was such a monumental meeting that a tweetstream was initiated at the event that has been ongoing for the past year at #FDASM on Twitter.

Continue reading “The Social Life of Pharmaceutical Companies”