Reader’s Question:

I have been a victim once of a very unsatisfactory service by one of the providers I got from my health insurance policy in Independence MO. I have heard a lot about pay-for-performance, and I am hoping that could help policyholders like me to get better service. How will that affected my health insurance policy though if that’s implemented?

Paul

Independence, MO

Very forward thinking, Hiland.

Although pay-for-performance (P4P) is not yet fully implemented as of this writing, I personally think it will be a worthwhile policy , and might be worth it if it would mean to increase health insurance premiums a little bit. In concept, pay for performance and value based purchasing are terms which refer to health care payment systems which reward medical providers like hospitals and doctors for efficiency in delivering service. Higher quality for a lower cost is the basic thrust for this policy as a way of protecting health insurance policyholders.

The federal government in MO is trying to reform health care and in this context, P4P is already begin implemented in Medicare program, although at this rate we cannot tell yet if P4P is more beneficial than not for most health insurance policyholders.

For me, our current healthcare system is not very favorable for health insurance policyholders as providers are being paid for every service rendered or performed. I’ve noticed health care providers sacrifice quality for quantity with our current system since it will be at the providers’ advantage to perform as many services as possible. Another issue being addressed by P4P is to encourage preventive healthcare. Our current system does not encourage health care providers to prevent other complications since they get to receive more money for more treatment needs by health insurance policyholders. For most insurance policyholders, I think if P4P will be fully implemented will surely help contain healthcare costs and can minimize waster for most consumers.