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Health care costs consume nearly a quarter of state budgets, and that share is rising at a rate that policymakers agree is unsustainable. Evidence shows that our runaway spending is not driving improved quality, and that lasting reform will require a shift from a volume-based system to one based on value.  The good news is that states are on the cutting edge of a transformation in how we pay for health care, with potentially far-reaching impacts at home and in the broader market.  

These innovations are documented in Value Over Volume 2.0, a new report from the CSG/ERC Health Policy Committee, which provides twenty three new tools to help policymakers build on their progress. The tools are concrete policy options being used successfully by states and other payers to control rising health costs while enhancing the effectiveness of care.
“This is a must-read for anyone working in health care policy today. Each topic discussed is a road map to where we need to go after federal reform,” said Connecticut State Senator Terry Gerratana, co-chair of the legislature’s Public Health Committee, and co-chair of CSG/ERC’s Health Policy Committee.
As the leading payers and regulators of health care, states have unique levers to reform health payment for both state spending and the larger market. Value Over Volume 2.0 follows up on CSG/ERC research released four years ago introducing state policymakers to payment reforms.