Incentivizing Chronic Disease Prevention and Treatment

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Editor’s Note: The following is testimony delivered by Anne Peters to the U.S. House Committee on Ways and Means Subcommittee on Health on Sept. 18, 2024. More information about the hearing can be found here.

Key Points

  • Chronic diseases are a growing health and economic burden: Conditions like obesity,
    diabetes, heart disease, cancer, and Alzheimer’s are becoming increasingly prevalent,
    driving up healthcare costs. By 2030, cumulative chronic disease costs could reach $42
    trillion.
  • Obesity is at the core of the chronic disease crisis: New obesity treatments show
    promise, with potential for significant health improvements and cost savings. Medicare
    coverage of obesity treatments could generate $4 trillion in social value to Americans
    over three decades.
  • Prevention and early intervention are critical: Comprehensive treatment of chronic
    conditions like obesity and diabetes, especially when initiated at younger ages, can yield
    substantial long-term health and economic benefits. The social return on investment from
    treating adults with moderate obesity is estimated at more than 15% per year.
  • Delaying aging could have enormous benefits: Scientific advances suggest it may be
    possible to slow the aging process and delay the onset of multiple age-related chronic
    diseases simultaneously. Even modest success in delaying aging could yield enormous
    health and economic benefits.
  • Policy changes are needed to incentivize prevention and health: Recommendations
    include reimbursing physicians for patient outcomes, encouraging multi-year insurance
    contracts, ensuring innovators are paid socially desirable returns, creating regulatory and
    reimbursement incentives for preventive interventions, and implementing value-based
    reimbursement models.

Full testimony is available here.