Industry News

On August 22^nd, 2006, President Bush signed an executive order requiring federal agencies to disclose the quality and cost of care provided to Medicare beneficiaries, federal employees, the military and veterans.  The order also requires the agencies and their contractors to promote the use of health care technology.
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Aetna, an early adopter of much of what the President is proposing, in June announced that they would be providing online access to transparent price and quality information for participating physicians in select areas of the country.  In August they expanded the regions that this service would extend to.

There are a couple of reasons why we think these developments are important.  Consumer driven health care trends are already producing health care savings.  Health care transparency and quality care data are critical components needed to maximize the effectiveness of ongoing consumer directed initiatives.  The federal government pays for approximately 40% of all health care expenses in the country.  It is both logical and necessary that they are leading the charge.  We also find it relevant and advantageous that Aetna, a private insurer, is developing similar initiatives.  To the extent that we can become better-educated health care consumers, the providers of that care will have to become more and more competitive to earn our business.  A competitive market driven by consumer pressure is the only long-term solution for reducing health care costs.