MHIAC Economics of Health Care Study

The Michigan Health Insurance Access Advisory Council (MHIAC) plans to partner with national experts to conduct a study of the economics of health care in Michigan. Phase 1 of the study will include an economic model of the current health care system in the state.

The economic model will be designed to answer the following questions, specific to Michigan:

• How many dollars flow into the health care system?
• Where do these dollars come from?
• How are these dollars spent?

This model will be projected three to five years into the future to look at the sustainability of the current system, taking into account Michigan’s changing economy, demographics, reimbursement patterns, funding streams, and the roles of the key stakeholders (health insurance purchasers, health care payers, health care providers, health care consumers and regulators).

Phase 1 of the study will provide information and analyses that will be used to inform the public, health care stakeholders, and decision-makers about the economic status and sustainability of the health care system in Michigan. The results will also help MHIAC determine the model variations that will be tested in Phase 2 of the study. It is anticipated that two or three variations of the Phase 1 model will be developed. The outcomes of these model variations will be projected three to five years into the future.

The analyses of the Phase 2 models and projections will be used to support the deliberations of MHIAC in generating a plan for assuring access to affordable health care insurance for all Michigan residents. When complete, MHIAC will work with health care stakeholders, health care decision-makers and the general public to share the proposed health insurance coverage reform plan and advocate for its features.