Health IT adoption and centralized patient care could save West Virginia's health care system more than $1.1 billion in 2014, according to a new report presented to lawmakers on Monday, the AP/Washington Post reports.
The report -- prepared by CCRC Actuaries for the West Virginia Health Care Authority -- is based on insurance claims data for more than 800,000 state residents who are enrolled in both public and private health plans.
According to the report, the savings would benefit government agencies, private insurers and policyholders, who could see lower premiums.
Cost-Saving Strategies
The report cited electronic prescribing, electronic health records and medical homes as key strategies for reducing health care costs.
The report estimates that e-prescriptions would save $164 million in 2014, including nearly $51 million in savings to private insurers and $42 million in savings to policyholders.
If EHRs are adopted statewide in the next four years, the report estimates a statewide savings of more than $317 million, including $85 million for private insurers and $84 million for policyholders. However, the report notes that upfront EHR costs range from $25,000 to $45,000 for physicians, and annual maintenance costs are between $2,000 and $9,000.
Meanwhile, the report estimates that a statewide rollout of medical homes would cost about $45 million up front and about $368 million in ongoing costs. However, it would save about $643 million in 2014 and nearly $2 billion in 2019, the report estimated (Breen, AP/Washington Post, 12/7).