News

May 4, 2015

Minnesota Health Care Leader Joins HCCI

March 5, 2015 – The Health Care Cost Institute (HCCI) and the National Academy for State Health Policy (NASHP) have announced the recipients of the State Health Policy Grant Program. The program has selected five research projects that will analyze state health reform initiatives and policy trends.

April 29, 2015

Health Care Spending for Privately Insured Children With Diabetes Rises Sharply Between 2011 and 2013

May 7, 2015 –- Per capita health care spending for children with diabetes covered by employer-sponsored insurance (ESI) grew faster than for any other age group with diabetes, rising 7% from 2011 to 2012 and 9.6% from 2012 to 2013, according to a study released today by the Health Care Cost Institute (HCCI). Overall per capita spending for individuals younger than age 65, covered by ESI, and with diabetes rose 4.1% in 2013, nearly double the 2012 increase (2.2%).

Contact:
For HCCI:
Maya Brod, 301-280-5757
mbrod@burness.com

Health Care Spending for Privately Insured Children With Diabetes Rises Sharply Between 2011 and 2013

Spending for All Privately Insured People with Diabetes Rose 4% in 2013; Was Nearly $10,700 Higher Than for Those Without Diabetes

Washington, DC – Per capita health care spending for children with diabetes covered by employer-sponsored insurance (ESI) grew faster than for any other age group with diabetes, rising 7% from 2011 to 2012 and 9.6% from 2012 to 2013, according to a study released today by the Health Care Cost Institute (HCCI). Overall per capita spending for individuals younger than age 65, covered by ESI, and with diabetes rose 4.1% in 2013, nearly double the 2012 increase (2.2%).

The report, Per Capita Health Care Spending on Diabetes: 2009-2013, is one of the first of its kind to examine health care spending for adults and children with diabetes relative to those without diabetes, both in terms of total per capita health care spending and out-of-pocket costs. It is based on the health care claims of more than 40 million Americans younger than 65 covered by ESI from 2009 to 2013. HCCI identified 5.3% of the ESI population as having diagnosed diabetes (type 1 or type 2) in 2013, up from 4.7% in 2009.

“The number of people with diabetes continues to grow, as does the health care spending for these individuals,” said HCCI Executive Director David Newman. “We, and others, need to better understand the relationship between spending and actual health outcomes for people with diabetes, particularly children.”

Spending on Children With Diabetes
Health care spending for children with diabetes rose from 2011 to 2013, and the dollar amount increase in per capita spending for children ($1,361) between 2012 and 2013 was nearly double the increase for young adults ages 19-25 ($753), who saw the second largest increase in spending.

The rise in spending for children with diabetes was in part due to higher spending on branded insulin. In 2013, $2,511 was spent per child with diabetes on branded insulin, more than four times what was spent on branded insulin for middle-aged adults ($589) and pre-Medicare adults ($617).  From 2009 to 2013, per capita spending on branded insulin increased 70% (by $1,037) for children.

“There has been extraordinary growth in health care spending for children with diabetes,” said HCCI Senior Researcher Amanda Frost. “It appears that higher spending on branded insulin is one factor influencing this trend. Moving forward, it will be important to continue to analyze these spending trends to see what else we can learn about how the way we manage diabetes contributes to its costs."

Health Spending Is Substantially Higher for People with Diabetes
While diabetes has been widely recognized as a growing public health challenge in the U.S., the report indicates that it also imposes a heavy financial burden on individuals. Spending differences between consumers with and without diabetes were considerable. In 2013, $14,999 was spent per capita on health care for people with diabetes – nearly 71% ($10,700) more than the $4,305 spent per capita for those without the disease.

Those with diabetes faced out-of-pocket per capita costs that were more than double that for those without the disease--$1,922 vs. $738. Out-of-pocket spending for consumers with diabetes rose 3.4% on average annually from 2009 to 2013.

Other Report Highlights:

  • Gender Gap in Spending: Women with diabetes (ages 19-54) had higher per capita spending than men with diabetes their age. The gender difference in spending was largest between men and women ages 26-44; in 2013, spending was $3,300 higher for women in this age range.
  • Pre-Medicare Adults (55-64): Pre-Medicare adults with diabetes had the highest per capita spending for any age group. In 2013, spending was $16,889 per capita, 3.7% higher than in 2012 (a $603 increase).

The report, Per Capita Health Care Spending on Diabetes: 2009-2013, will be available on the Health Care Cost Institute’s website on May 7, 2015 at 12:01 a.m. ET at: http://www.healthcostinstitute.org/issue-brief-capita-health-care-spending-diabetes-2009-2013

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The Health Care Cost Institute was launched in 2011 to promote independent, nonpartisan research and analysis on the causes of the rise in U.S. health spending. HCCI is governed by a board that includes distinguished economists, actuaries and health care experts. For more information, visit www.healthcostinstitute.org or follow us on Twitter @healthcostinst.

Download the Press Release (PDF)

March 2, 2015

HCCI and NASHP Announce State Health Policy Grant Recipients

March 5, 2015 – The Health Care Cost Institute (HCCI) and the National Academy for State Health Policy (NASHP) have announced the recipients of the State Health Policy Grant Program. The program has selected five research projects that will analyze state health reform initiatives and policy trends.

Contact:
For HCCI:
Maya Brod, 301-280-5757
mbrod@burness.com

For NASHP: 
Lesa Rair, 202-903-2785
lrair@nashp.org

HCCI and NASHP Announce State Health Policy Grant Recipients

Research teams will analyze how states are implementing health system reforms

The Health Care Cost Institute (HCCI) and the National Academy for State Health Policy (NASHP) have announced the recipients of the State Health Policy Grant Program. The program has selected five research projects that will analyze state health reform initiatives and policy trends. The ultimate goal of the grant program is to evaluate and report on state health policy initiatives, with the overall purpose of improving the value delivered by the U.S. health care system. HCCI and NASHP convened an independent committee of health policy experts to review submitted grant proposals. The grant recipients include:

  • University of California, Berkeley (Dr. Timothy Brown, Dr. James Robinson, and Christopher Whaley): “The Effect of Reference Based Benefits on State Healthcare Expenditures”
  • University of California, San Francisco (PI: Dr. Ulrike Muench): "The Effect of State Scope of Practice Laws on Pharmaceutical Utilization"
  • University of Chicago (PI: Dr. Rena Conti): “The Impact of Provider Consolidation on Outpatient Cancer Care Spending”
  • University of Colorado Denver  (Co-PIs: Drs. Benjamin Miller and Lynn VanderWielen): "An Evaluation of the Mental Health Parity and Addiction Equity Act and the Provision of Integrated Behavioral Health and Primary Care Services"
  • University of Nebraska Medical Center (PI: Dr. Jim Stimpson): "State-Level Analysis of Telehealth Policies"

“Future action in health care reform will occur largely at the state level,” Trish Riley, Executive Director at NASHP, explained.  “State policymakers implementing reforms need research like this to inform their thinking, offer models, and share real world lessons from other states’ experience.”

Each research team will receive a grant of up to $150,000 and will have access to HCCI’s repository of commercial claims data for over 50 million insured Americans – one of the largest private health insurance claims databases of its kind.

“Currently, we have limited information on the effects of health care reforms happening at the state level,” said HCCI Executive Director David Newman. “This grant program is funding data-driven research that will build a knowledge base about state reforms, and serve as a resource for policymakers and consumers alike.”

The grant program is funded by a $1.5 million grant from the Laura and John Arnold Foundation (LJAF), a private foundation that has committed more than $25 million dollars to organizations that are working to improve value in the health care system.

“These research projects will help to identify key health care reforms that are delivering promising results,” LJAF Vice President of Venture Development Kelli Rhee explained. “Once we have a better understanding of what works, we can then replicate and scale those models as part of a broader effort to lower costs and improve the quality of patient care across the United States.”

More detailed descriptions on the winning research projects can be found here: http://www.healthcostinstitute.org/state-health-policy-grant-program

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About the Health Care Cost Institute
The Health Care Cost Institute was launched in 2011 to promote independent, nonpartisan research and analysis on the causes of the rise in U.S. health spending. HCCI is governed by a board that includes distinguished economists, actuaries and health care experts. For more information, visit www.healthcostinstitute.org or follow us on Twitter @healthcostinst.

About the National Academy for State Health Policy
The National Academy for State Health Policy (NASHP) is an independent academy of state health policymakers who are dedicated to helping states achieve excellence in health policy and practice. A non-profit and non-partisan organization, NASHP provides a forum for constructive work across branches and agencies of state government on critical health policy issues. For more information, visit www.nashp.org.

About the Laura and John Arnold Foundation
LJAF is a private foundation committed to producing substantial, widespread, and lasting reforms that will maximize opportunities and minimize injustice in our society. Its strategic investments are currently focused on criminal justice, education, public accountability, and research integrity. LJAF has offices in Houston and New York City. For more information, visit www.arnoldfoundation.org

Download the Press Release (PDF)

February 23, 2015

Health Care Cost Institute (HCCI) Launches Guroo – To Provide Consumers With Free Access To A Health Care Transparency Tool

February 25, 2015 – The Health Care Cost Institute (HCCI), an independent, non-partisan, non-profit organization, announced today the introduction of guroo.com, a consumer-focused website that provides national, state and local cost information for common health conditions and services using claims from multiple insurers for more than 40 million insured individuals - numbers that no one else has. The new website is free and accessible to everyone, regardless of whether they have insurance or who their insurer is.

January 20, 2015

HCCI Data Show Potential Financial Benefits Of Shopping For Health Care Services

February 3, 2015 – A new data brief from the Health Care Cost Institute (HCCI) examines how much consumer medical care prices vary for certain elective procedures and demonstrates how much consumers could save out of their own pockets by shopping for care. The HCCI analysis shows that consumer out-of-pocket spending for common health care procedures can vary from $10 to nearly $1,000 depending on the procedure.

December 17, 2014

“A Henry Ford Moment”: HCCI & NORC Establish a Data Enclave for Researchers and Academic Partners

Health care data needs a ‘Henry Ford’ moment to move from a realm of unconnected and unwieldy data to a world of connected and matched data with a common support for licensing, legal, and computing infrastructure.” -David Newman, Executive Director of HCCI

HCCI has made the health care claims of more than 50 million Americans available to academic partners and researchers around the U.S. through a new Data Enclave administered by NORC at the University of Chicago. David Newman, HCCI’s Executive Director, and Timothy Mulcahy, NORC’s Data Enclave® Program Director, recently sat down to discuss their joint effort on this project.

What is a Data Enclave and what led you to create one?

DAVID NEWMAN: A Data Enclave is a place where data resides. What’s unique about the HCCI enclave, though, is that it provides a deep level of security and all of the tools and computing capacity that a researcher needs to work with confidential, sensitive health care data. As our health care datasets get larger and larger, many researchers don’t have the resources necessary to work with them. Our partner, NORC, has built a scalable computer environment that ensures authorized researchers are able to access and work with our data in a manner that protects individual privacy and complies with HIPAA.

TIM MULCAHY: Ten years ago, the prevailing model for sharing data was to either send out confidential data through the mail or require researchers to travel great distances to brick and mortar entities where data were stored. Not only is that expensive, but it also presents significant risk of a data breach. Rather than pushing data out, the Data Enclave ensures that the data never move. The data remain in a secure, impervious environment, and approved researchers are granted a safe way to access data remotely.  

What do HCCI and NORC hope to achieve by partnering together? 

DAVID NEWMAN: In our assessment, NORC has the deepest understanding of how to build a Data Enclave. They’ve successfully done this with other federal agencies and organizations, they understand the requirements for a HIPAA secure health care environment, and they are scalable – which means that they will be able to store our datasets no matter how much they grow or change. As a fellow nonprofit organization, NORC’s mission and values align with our own and they understand what we want to achieve. Advancing research and decisions that affect health care spending, quality, and cost is as important to us as it is to them.

TIM MULCAHY: Since 2006, NORC has provided its partners with a secure platform where they can host and build a research community around their data. Our Data Enclave is different in that it was designed by us: the researchers, the end users of these data. After working in this field for many years, we know how difficult it is to get a hold of large confidential datasets for research purposes. As the system engineers and integrators of the data, and actual users of the data we value the advancement of public interest research first and foremost.

Who is going to benefit most from this? How is having a common portal going to advance research on health care?

DAVID NEWMAN: The advantage of the Data Enclave is that it allows us to grant researchers more timely access to data. When we are able to study our health care system with faster, larger datasets, everyone benefits – consumers, researchers and the policy community. At the end of the first year of the HCCI Data Enclave, we expect to have more than 20 research projects using HCCI’s datasets. That’s a huge jump historically for us and it means that our data will be advancing a larger share of health care cost and quality research. The Data Enclave will also foster collaboration among our partners. The beauty of this enclave is that it allows researchers to collaborate across teams, share code, and benefit from having a common portal with all the research tools they need to access our datasets.

TIM MULCAHY: The Data Enclave was designed not only to securely store sensitive data but also to retrieve information more efficiently and speed up computation times. In other computational settings, a researcher could request information from a dataset that would literally require 4-6 weeks to process. With our Data Enclave, the same request will only take 3-4 hours. The fact that you execute the same queries at orders of magnitude more quickly has huge implications for research and policy decisions in health care. The discovery potential here is enormous. With the Data Enclave, we can make faster, more informed decisions. This is not only a matter of speed, but accuracy. We have larger datasets and so our findings are more precise and the results are true results.

With access to HCCI’s claims data, what new aspects of health care spending trends will researchers be able to study that they couldn’t before? What’s been missing for them up until now?

DAVID NEWMAN: Until recently, there has been a lack of timely, detailed information to track the components of national commercial health care spending, support analysis of underlying cost drivers, and explore the reasons for cost and spending variations across the country. Now, with the Data Enclave, HCCI’s claims data from over 50 million privately insured Americans, will become available to authorized researchers and our academic partners.

TIM MULCAHY: From a researcher’s standpoint, the most astonishing thing to me about the HCCI Data Enclave is that it will hold a significant percentage of the national data on privately insured lives. Never before have we provided that level of access to data, and it will only increase as more commercial payers participate. We will be able to track episodes of care and identify trends in ways we’ve never been able to before. The focus of this whole endeavor is to take the ambiguity out of the health care arena, monitor emerging trends, and foster cost and price transparency.

What will this mean for the future of health care data research? What information has not been tapped into yet?

DAVID NEWMAN: We hope the Data Enclave will give other potential data contributors far greater comfort knowing that their information can be protected in a secure environment that it is being used solely for the purposes of non-commercial, academic research. Our ultimate goal for this project is to create a “one-stop shop” of health care data, which is something that does not yet exist. In addition to claims data, we would also like to see hospital and clinical data, and electronic medical records stored in one place and linked together so that we can accomplish more sophisticated research on health care outcomes and quality. I think we’re moving in the right direction and already are offering what researchers have lacked in the past: timely and large datasets on the health care practices of privately insured Americans.

TIM MULCAHY: HCCI has really changed our perception of what’s possible. The best scenario for the future of health care data research is that we would have access to public and private sources of data in a single, secure Data Enclave. With such large datasets, there is enormous potential for research breakthroughs. We would be able to track episodes of care for individuals, study disease pathologies and even look at instances of extremely rare conditions that might affect 1 in a million people. There is so much that we are capable of when we integrate different datasets. We are already seeing this happening in the State of Maine, for example. Maine is not just tracking claims data, but also clinical inpatient and outpatient data from hospitals. By linking the claims data and clinical data, we will be able to find out the actual cost and quality of various procedures across the state at the facility and physician level.

Read more about the Data Enclave.

October 23, 2014

New Report: Spending Per Privately Insured Grew 3.9% in 2013, as Falling Utilization Offset Rising Prices

October 28, 2014: The fourth annual health care cost and utilization report from HCCI

October 17, 2014

HCCI and NASHP Release RFP for State Health Policy Grant Program

October 17, 2014: The Health Care Cost Institute (HCCI), in collaboration with the National Academy for State Health Policy (NASHP), today released a Request for Proposals (RFP) for the new State Health Policy Grant Program. A webinar to answer researchers’ questions regarding the RFP will be held at 3:00 pm (ET) on October 27, 2014.

September 22, 2014

New HCCI Study Finds Young Adult Health Care Use Rose After ACA

September 24, 2014– A study released today by the Health Care Cost Institute (HCCI) found that per capita health care spending for young adults (ages 19-25) with employer-sponsored insurance (ESI) grew at a rate nearly double that of other adults (ages 26-64) during 2011 and 2012, the first two years after implementation of the Affordable Care Act (ACA; Section 1001) that allows parents to include their adult children in family health plans.

September 9, 2014

HCCI and NASHP Announce New Grant Program for State Health Reform Research

September 9 , 2014: The Health Care Cost Institute (HCCI) and the National Academy for State Health Policy (NASHP) announced today that they are launching a new grant program to fund research studies that will analyze how the states are implementing the Affordable Care Act (ACA) and other health reforms.

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