David Durenberger: “I rise today to commend and bring to your attention a study done by the University of Minnesota and Hennepin County…”

“I rise today to commend and bring to your attention a study done by the University of Minnesota and Hennepin County Medical Center. The report indicates that the elderly poor in Twin Cities Medicaid-HMO plans are as happy with their care and as healthy as those who are in fee-for-service plans. Yet the cost of their care is considerably less than that of fee-for-service plans. It is critical for us to heed the implications of this study as we consider how to move forward with health care reform. It points us toward answers to two important questions: How do we contain costs and how do we expand access to the poor and uninsured? Much of the health reform debate has focused on the buyer side of the market. It is equally important to focus on the sellers or providers of care. Cost containment will only occur if there are changes in the way medicine is practiced and care is delivered. The key to making this change is the accountable health plan [AHP]. HMO's, like the ones in this study, are an integrated delivery system that bring efficiencies, economies of scale, managed utilization and capitated prepayment.”