There is little question about the need to reform America’s health care system. The country spent $2.2 trillion for health care last year, but a significant portion of that spending is likely to have provided little if any value to the well-being of patients. Health insurance costs have been rising more rapidly than workers’ wages, putting insurance increasingly out of reach for millions of people. Although much public attention has focused on expanding coverage for the uninsured, that goal is tied to our efforts to reform the delivery system and to establish a responsible financing system that is sustainable into the future.

There are two basic ways to finance a reformed health system: raise revenue or reduce health spending. We will undoubtedly do both. What matters is whether we take advantage of this moment in history to promote greater efficiency, greater consumer involvement, and smarter health purchasing--to achieve better health outcomes while living within a realistic budget constraint.

Click here to view this document as an Adobe Acrobat PDF.