Beyond More Health Insurance Coverage, toward Better Health Outcomes
About This Event

The health policy debate in the 2008 presidential campaign year needs to move beyond the well-rehearsed pattern of the past, which focused primarily on how to expand insurance coverage to more Americans and find (or hide) the amount of money needed to pay for more health care services. Expanding the Listen to Audio


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parameters of discussion might create a more productively balanced portfolio of public policy tools that would improve overall health more affordably. Speakers at this conference will examine some of the other policy instruments that could promote healthier behavior, health literacy, skill formation, improved decision-making, and more efficient health care delivery. The initial focus, as part of a continuing research project at AEI, will be on how some of the "upstream" factors (such as education, nutrition, family, culture, and early development) shape the behavior and capabilities of individuals over their entire life cycle of health, as well as how certain "downstream" factors (such as the alignment of payment incentives and development and dissemination of relevant performance measurement information) could improve the effectiveness and efficiency of health care delivery.

Agenda
10:00 a.m.
Registration
10:15
Introduction:
10:30
Keynote Address:
James Heckman, University of Chicago
"Human Capital, Skill Formation, Early Intervention, and Long-Term Health"
11:00
Panel I: How to Improve Long-Term Health and Health Decision-Making Skills
Presenters:
Richard Frank, Harvard University
"Behavioral Economics and Health Decision-Making"
Robert Kaestner, University of Illinois at Chicago
"Education and Health: Updating the Health Capital Model"
Barak D. Richman, Duke University
"Psychosocial Factors behind Persistent Health Disparities"
David Wennberg, M.D., Health Dialog
"Decision Support, Preference-Sensitive Care, and Evidence-Based Care"
Moderator:
12:30 p.m.
Luncheon
12:45
Special Remarks:
Michael McGinnis, Institute of Medicine
"Determinants of Avoidable Mortality, Investment in Health Promotion and Disease Prevention"
1:45
Panel II: The Effectiveness and Efficiency of Preventive Care and Health Promotion
Presenters:
Edward Hill, M.D., World Medical Association
"Primary Prevention Before and Beyond the Doctor's Office"
Tomas J. Philipson, AEI and University of Chicago
"The Economics of Obesity"
Louise Russell, Rutgers University
"Prevention versus Cure: What Is the Right Balance?"
Moderator:
3:30
Adjournment
Event Summary

 

Education Essential to Improved Health Outcomes

 

 

WASHINGON, JULY 23, 2008--Conventional wisdom suggests that more health care services will lead to better overall health. That is not necessarily the case, said speakers at an AEI event on Wednesday, including Nobel laureate James Heckman of the University of Chicago.

Duke University's Barak Richman said the standard way of thinking rests on two assumptions: that more health insurance will increase health care consumption and that increased health care consumption will lead to better health. Richman cited his analysis of the Duke University employee population, which showed that wealthier individuals were more likely to utilize covered mental health services than low income individuals, thus demonstrating that expansion of public insurance coverage to include specialized benefits can lead to a regressive redistribution of wealth.

If more health insurance does not necessarily lead to better health, then what does? Heckman explained that individuals have the ability and motivation to make decisions to improve their health, and that early childhood intervention and education can positively influence those abilities and motivations. Robert Kaestner of the University of Chicago at Illinois showed that more education leads to better health behaviors, such as adherence to treatment plans provided by physicians and reduction in rates of cigarette use and alcohol abuse. "Getting people educated will improve public health," he said.

Both Dr. Michael McGinnis of the Institute on Medicine and Dr. Edward Hill, former president of the American Medical Association, pointed out that the main causes of mortality in the United States are related to the effects of physical inactivity, tobacco use, and excessive alcohol consumption. They also suggested that improvements in overall health could be achieved through better education, improved diet, more exercise, and superior individual decision making.

Education is also important in the clinical setting. People tend to choose less invasive and less costly interventions when fully educated about different treatment options and their associated risks and benefits, said Dr. David Wennberg of Dartmouth Medical School.

Tomas Philipson of the University of Chicago noted that obesity, which can increase the risks of heart disease, stroke, and diabetes and consequently results in substantial health expenditures, is caused by lifestyle behaviors outside of health care markets. He argued that in order for obesity to become such a significant problem, there must be some factors that offset its long-term health costs and risks. Curbing obesity will require understanding of these and the other causes of obesity, generation of better policy tools to incorporate external costs, and medical research to find ways to reduce individuals' propensity towards unhealthy diet and exercise decisions.

The event's speakers also questioned other traditional assumptions about health care. Louise Russell from Rutgers University showed that spending on medical prevention does not always lead to more cost effective care. When medical prevention efforts are targeted at high risk populations--using statins to reduce cardiovascular disease, for example--overall costs relative to benefits decrease. But broadening prevention efforts in other areas, such as increasing the frequency of screenings, leads to increased overall costs relative to benefits.

--WALTON DUMAS

For video, audio, and event information, visit www.aei.org/event1758/.  

For media inquiries, contact Véronique Rodman at 202.862.4870 or vrodman@aei.org.

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AEI Participants

 

Thomas P.
Miller
  • Thomas Miller is a former senior health economist for the Joint Economic Committee (JEC). He studies health care policy and regulation. A former trial attorney, journalist, and sports broadcaster, Mr. Miller is the co-author of Why ObamaCare Is Wrong For America (HarperCollins 2011) and heads AEI's "Beyond Repeal & Replace" health reform project. He has testified before Congress on issues including the uninsured, health care costs, Medicare prescription drug benefits, health insurance tax credits, genetic information, Social Security, and federal reinsurance of catastrophic events. While at the JEC, he organized a number of hearings that focused on reforms in private health care markets, such as information transparency and consumer-driven health care.
  • Phone: 202-862-5886
    Email: tmiller@aei.org
  • Assistant Info

    Name: Catherine Griffin
    Phone: 202-862-5920
    Email: catherine.griffin@aei.org

 

Tomas J.
Philipson
  • Tomas J. Philipson is a visiting scholar at AEI and the Daniel Levin Chair in the Irving B. Harris Graduate School of Public Policy as well as an associate member of the department of economics at the University of Chicago. He was a senior health care adviser to the 2008 presidential campaign of John McCain and served in the Bush administration as the senior economic adviser to the commissioner of the Food and Drug Administration from 2003 to 2004 and subsequently as the senior economic adviser to the administrator of the Centers for Medicare & Medicaid Services from 2004 to 2005. Mr. Philipson is an editor of Forum for Health Economics & Policy and is on the editorial board of Health Economics and The European Journal of Health Economics. He has twice been the recipient of the highest honor of his field, the Kenneth Arrow Award from the International Health Economics Association, in 2000 and 2006.  Mr. Philipson is the cofounder of Precision Health Economics, is an adviser to the Gerson Lehrman Group, and is a consultant for Compass-Lexecon and Analysis Group.
  • Email: tomas.philipson@aei.org
  • Assistant Info

    Name: Gregory Lane
    Phone: 2028624879
    Email: greg.lane@aei.org
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