James Kvaal on Health Care and the Economy

What are the economic consequences of failing to reform the health care system?

Our health care system poses two major economic problems to our country. FIrst is health care costs are very high and they're increasing rapidly—over 2 trillion dollars a year—and are expected to almost double to 4 trillion in the next decade. The second problem is that about 46 million Americans do not have health insurance. Not surprisingly, those Americans often go without the care that they need, and the result of their increased sickness and premature deaths cost the U.S. economy about $2 billion a year.

What are the most important changes that need to be made?

The first thing we need to do is we need a universal health care system, something that really covers everyone. And that would make sure that people get the care they need when they need it. They'll get preventive care, which will make people healthier and also hold down costs. It will help us better manage chronic diseases like cancer and diabetes where often-times those don't get treated and that also makes people sicker and drives up health care costs. We also need to invest a lot more to get greater value out of our health care system. So that means researching the most cost-effective treatments, comparative research of different devices or drugs, and investing in health care information technology like electronic medical records, which can increase productivity and reduce errors.

Can we afford these reforms right now with the deficit rising?

You know, some people say that we can't afford to invest in universal health care now because the deficit is rising quickly. But, in fact, failing to invest in health care would be penny wise and pound foolish. RIsing health care costs are the number one driver of the long-term fiscal imbalances facing the U.S. deficit, so if health care reform can make the system more cost effective, it could be the most fiscally responsible thing to do.