AdvaMed’s Universal Healthcare Plan Promotes Innovation

NEWS TRENDS

A universal healthcare reform plan proposed by AdvaMed provides insurance to all Americans while continuing to make medical device innovation a priority. The trade association's board of directors approved the plan in mid-June.

The plan seeks to save billions of dollars in national spending. The savings will come from medical innovation, more use of health information technology (IT), and better treatment and prevention of chronic illnesses. AdvaMed estimates that its plan will save $226 billion per year in spending nationwide, including $105 billion per year for the federal government.

“Our plan shows that you can finance expanded coverage without rationing care or stifling innovation,” says Stephen Ubl, president and CEO of AdvaMed. “Our plan pays for itself through the cost savings generated by improved prevention, quality, and efficiency and through fostering the development of new cures and treatments.”

Technologies that have led to more-efficient healthcare include computed tomography screening and angiograms, minimally invasive procedures such as image-guided breast biopsies, virtual colonoscopy, and renal angioplasty, and increased use of left-ventricular assist devices. Breakthrough technologies not only save money by reducing hospital stays and replacing more-expensive procedures but also by increasing the quality of life for patients. Medical innovation alone could potentially save more than $100 billion in national health spending, according to AdvaMed staff estimates.

AdvaMed proposes four key measures to promote device innovation:

The plan also makes provisions for giving incentives for adopting healthcare IT, including the use of interoperable electronic medical records. More efficiency in this area could save $72 billion each year.

A recommended $10 billion annual fund would promote a healthy lifestyle by encouraging patients to undergo screening and take advantage of other preventive services. It would also finance research to develop the most effective preventive approaches.

Under the terms of the plan, every American would be able to buy insurance coverage that meets minimum federal standards. Premiums would be capped at a “reasonable percentage” of income that would be lowest for low-income individuals and families and would rise as income rises.

States would be responsible for ensuring that people have a choice of coverage that meets national standards, along with setting up insurance procedures that help small businesses provide coverage options to employees.

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