The Budget Cap Dilemma: Can You Reduce Spending and Preserve Patient Health?

On Thursday, April 29, 2021, NPC hosted a webinar on budget cap implementation strategies, challenges, and the relevance of these decisions on patient health. Access the summary blog here. Watch the archived webinar on demand. 

More and more, states are using budget caps -- budget planning tools designed to help policymakers set a limit on annual health spending growth. Along with an increase in use, there also are significant differences in how budget caps are implemented. A recent National Pharmaceutical Council (NPC) study assessed the potential effects of budget cap design to help budget decision-makers understand how and when these approaches impact patient health. The report identified design elements needed to ensure success, both in terms of cost reduction and health improvement.

Background:

Sorting through the various considerations of budget cap implementation can be challenging. The research explains how budget caps vary in several important ways, including (1) implementation strategies, (2) enforcement mechanisms, and (3) determination of spending growth limits. Budget caps also often have growth targets that use factors unrelated to health care delivery, such as inflation, productivity growth, and GDP growth. This webinar centers on the factors most important for achieving budgetary objectives while preserving patient outcomes.

Some of the issue questions discussed include:

1. What is the landscape of budget cap use?
2. What can we learn from programs, such as Medicaid, that have direct experience with fixed budgets?
3. Where do budget caps present potential risks for patient health and what can be done to mitigate these risks?
4. How can patient needs be better reflected in budget cap programs?

FEATURED SPEAKERS

       Robert W. Dubois, MD, PhD, (Moderator)
       Interim President and CEO, National Pharmaceutical Council (NPC)

 

 

Michael Ciarametaro, MBA
Vice President, Research, National Pharmaceutical Council (NPC)

Matt Salo
Executive Director National Association of Medicaid Directors (NAMD)

Andrew Sperling, MA, JD
Director, Legislative Affairs, Advocacy and Public Policy, National Alliance on Mental Illness (NAMI)

Hemi Tewarson, MPH, JD
Visiting Senior Policy Fellow, Duke-Margolis Center for Health Policy

Who would benefit most from this webinar?

• State budget decision-makers
• Policymakers
• Payers (Public and Private)
• Pharmaceutical Industry
• Patient Organizations

Watch the archived webinar on demand.