Incentives and information drive health care innovation: lessons from Medicare Advantage

Health care in America often feels like it moves at a glacial pace, if that fast. Case in point: fax machines remain indispensable as a way of transferring information. On a larger scale, the U.S. health care system still struggles with readmissions, medication adherence, chronic disease outcomes, and more. True innovation is rare.

But every so often a crack in the ice occurs that leads to rapid change. Sometimes legislative action is the trigger. The Affordable Care Act and the HITECH Act sparked lots of innovation and startup activity. As we look to 2021, though, the odds of a split or Republican-controlled Senate are high and so the likelihood of major innovative legislative change is low.

In the absence of legislative or regulatory decree, we believe that two requirements — aligned economic incentives and the availability of data and information — can trigger bursts of innovation in our super complicated, fragmented, highly regulated, and archaic health care system. Without these two, not much happens. Read More: StatNews

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