Cigna CEO explains why he thinks healthcare costs so much

It's no secret that healthcare costs are excessive in the US.

David Cordani, CEO of Cigna, told Business Insider in an interview last week that the central reason why these costs have skyrocketed is because the nation focuses more on intervention after an individual gets sick somewhat than illness prevention.

"We spend the majority of our money and resources addressing people once they're sick. We need to spend some more of our resources keeping people healthy in the first case, and identifying people who are at risk of health events and lowering those health risks," he stated.

In 2017, the US spent $three.5 trillion on healthcare, and that figure is projected to succeed in $5.7 trillion by 2026, based on the Center for Medicare and Medicaid Services. Hospital care ( 32% of spending ), drug costs (10% of spending) and doctor and medical providers (20% of spending) are all getting more expensive .

Cordani instructed that offering extra social service help akin to local education schemes, financial help, and resource guides for locating healthcare suppliers would help deliver down healthcare costs, as properly.

Another situation, he stated, is that the US has extra specialists and extra hospitals per capita than most other developed nations, and less main care docs like OBGYNs, pediatricians, and household practitioners.

"We spend a lot more money on high cost intervention, as opposed to enabling the primary care physician, the geriatrician, the pediatrician, to have more resources to help to coordinate care for individuals," stated Cordani.

There's potential to enhance drug affordability by growing the standard of post-clinical care, Cordani believes. Hospitals, as an alternative of simply prescribing tablets, ought to assess if the patient really wants medicine to assist them get higher. Health insurers also needs to supply more behavioral and well-being providers comparable to mental health remedy, nutrition guides, and way of life advisory.

Cordani summed up his strategy: "First, you always need to have a strong foundation. And we do so by engaging the individuals, trying to lower health risks, keep people healthy, and then improve the quality of healthcare that's delivered. Two, use actionable information to predict or identify health risks before they happen ... that's how you improve overall cost and quality."

Watch the complete interview here .

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