Promote Health and Wellness

One of the greatest challenges facing the healthcare system is managing the care for the growing number of people with chronic illnesses.

In 2000, approximately 120 million Americans had a chronic illness, such as asthma, diabetes or heart disease. The costs of treating chronic illness are estimated to account for 75 percent of healthcare spending (Anderson and Knickman 2001).

The prevalence of chronic illness is especially acute for Medicare. A study by Ken Thorpe of Emory University traced virtually all growth in Medicare spending from 1987 to 2002 to a 20 percent increase in the share of Medicare patients receiving treatment for five or more conditions. Some of the most costly and prevalent chronic diseases, such as heart disease, diabetes, chronic obstructive pulmonary disease and asthma, are also ones where adverse events can be avoided with better management. However, traditional fee-for-service Medicare does little to encourage coordinated, preventive and primary care that could save money and produce better health outcomes, according to a 2006 report by the Institute of Medicine.

The fact that many Americans fail to follow a healthy lifestyle also contributes to rising healthcare costs. According to the Centers for Disease Control and Prevention (CDC), nationally 33 percent of adults are obese, with 14 percent of children age 2-5 overweight, 18 percent of children age 6-11, and 17 percent of those age 12-19. Obesity is estimated to generate $36.5 billion in healthcare costs annually (Thorpe, et al., 2005). In addition, the CDC found more than 24 percent of men and 21 percent of women smoke, and tobacco use is estimated to cause $75 billion in medical costs annually.

What the Blues are Doing

What the Government Should Do