Floridians for Affordable Healthcare

Reducing Healthcare Costs in Florida

Florida ranks among the most expensive states for healthcare, with costs impacting families, businesses, and the overall economy. To address this, we propose a multifaceted strategy focusing on prescription drug pricing reforms, employer-sponsored plans, hospital pricing transparency, and leveraging technology for efficiency. This approach aligns with the mission of Floridians for Affordable Healthcare (FAH) to educate and advocate for policies that reduce healthcare costs and improve accessibility.

Reducing Prescription Drug Prices

Prescription drug prices in Florida are excessively high, driven partly by the complex patent system. Simplifying the patent process can foster competition and reduce prices:

Curbing Patent Evergreening: This practice involves making minor changes to existing drugs to extend patent life and delay generic competition. Reforming patent laws to limit such practices can increase the availability of lower-cost generics.

Streamlining FDA Approval for Generics: Faster approval processes for generic drugs can enhance market competition and lower prices.

Reforming Employer-Sponsored Plans

Employer-sponsored health plans in Florida are among the highest in the nation. Empowering employers to manage these plans more effectively can lead to significant cost reductions. Key strategies include:

Enhanced Use of Pharmacy Benefit Managers (PBMs): PBMs can negotiate better drug prices and rebates, manage drug formularies, and implement cost-saving measures such as step therapy and generic substitution.

Encouraging Value-Based Insurance Design (VBID): This involves structuring health plans to incentivize high-value care and preventive services, reducing overall healthcare spending by focusing on outcomes rather than volume.

Increasing Hospital Pricing Transparency

Transparency in hospital pricing is crucial for reducing costs and protecting patients from unexpected expenses. Specific measures include:

Eliminating Facility Fees: These fees often surprise patients and inflate bills. Removing them can make hospital pricing more transparent and reduce overall costs.

Mandating Price Disclosure: Hospitals should be required to disclose the costs of procedures, allowing patients to compare prices and make informed decisions. This can drive competition and lower prices across the board.

Leveraging Technology for Healthcare Efficiency

Technology can play a significant role in improving healthcare efficiency and reducing costs:

Expanding Telemedicine: Increasing access to telemedicine services can reduce the need for in-person visits, lowering costs for both providers and patients.

Electronic Pre-Authorization: Implementing electronic systems for pre-authorization can reduce administrative burdens, speed up patient care, and decrease costs associated with manual processes.

E-Prescribing: This reduces errors, enhances prescription adherence, and manages drug costs effectively. It also integrates with PBM systems to apply formulary rules and benefit designs in real-time.

Implementing these strategies can significantly reduce healthcare costs in Florida. By addressing the root causes of high expenses—such as inefficient employer-sponsored plans, opaque hospital pricing, inflated drug prices due to patent manipulation, and outdated administrative processes—we can create a more affordable and sustainable healthcare system for all Floridians.

IT'S TIME FOR AFFORDABLE HEALTHCARE IN FLORIDA

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