Health Care Reform – Getting the Incentives Right

View All Insights »

One of the main goals of the Affordable Care Act (ACA) is to reform our health care system in order to make medical care affordable for all Americans. The ACA attempts to achieve this goal by using a number of cost management methods. Some of the cost control methods are the movement away from fee-for-service, the use of Accountable Care Organizations, and penalizing readmissions when patients relapse.

A recent report by the Health Care Incentives Improvement Institute, Inc. (HCI3®) developed with support from the Robert Wood Johnson Foundation (RWJF), discusses the effectiveness of using financial incentives to encourage the desirable behaviors by health care providers and customers. One of the report’s findings is that financial rewards become less effective motivators as the behaviors they are trying to influence become more complex. The report discusses why the ACA will need to use more than just financial “sticks and carrots” to achieve meaningful reform of our health care system.


Click here to view the study