By Nancy Galvagni and Kennan Wethington
Health care comes with a substantial price tag, particularly in hospitals where skilled professionals and advanced technologies deliver innovative, lifesaving care every day. Despite the significant investments required for such high-quality operations, Kentucky consistently delivers world-class health care at a great value, outperforming our neighboring states and much of the nation. This is more than speculation; it’s backed by data. According to studies, including the RAND Hospital Cost Report, Kentucky hospitals offer services at significantly lower costs compared to Indiana, Tennessee and Ohio, placing us among the most affordable states in the nation.
Affordability Matters
Affordable health care is accessible health care, and every Kentuckian deserves high-quality, cost-effective care. Lower health plan deductibles and copayments benefit nearly every hospital patient, leading to lower health insurance premiums. This puts more dollars in consumers’ pockets, and significantly benefits local employers.
For employers, the benefits of affordable health care are substantial. About 80% of Kentucky employers use self-funded health plans, meaning they cover the costs of their employees’ health care. Thanks to our hospitals’ high-quality and cost-effective care, local employers can redirect their health savings toward workforce expansion, raising salaries, launching new projects and expanding operations. This gives our local employers a competitive edge and attracts new business to Kentucky.
Driven by Collaboration
Despite generally poor health rankings in Kentucky, which increase the demand for health care, our hospitals continue to provide extensive services at lower costs. This achievement is made possible through ongoing, collaborative efforts among Kentucky hospitals, medical professionals and health plans like Anthem Blue Cross and Blue Shield. We help keep costs down by improving efficiency, reducing waste and implementing programs that link health outcomes with value.
Value-based care is an innovative payment model that prioritizes value over volume. It rewards providers for improving patient health outcomes rather than the quantity of services delivered. By emphasizing preventive care and effective management of chronic conditions, we are minimizing unnecessary procedures and costly hospital visits. Anthem has been at the forefront of this shift, working closely with Kentucky hospitals for over five years to implement sophisticated value-based care delivery and payment models.
We’re in this Together for Kentucky
Health care providers and health plans share a fundamental obligation to ensure that health care in Kentucky is accessible, affordable, and high quality. Our collaborative efforts have already brought about significant results. For those who claim Kentucky is too expensive, a look across state lines clearly demonstrates the positive impacts of our work.
Kentucky’s story of affordability is a testament to what can be achieved when organizations unite to tackle big, systemic challenges through collective hard work and a shared dedication to community. Yet, our work doesn’t stop here. We remain committed to working together to drive progress that will continue to improve the health and financial well-being of our neighbors and businesses across the Commonwealth well into the future.
Nancy Galvagni is CEO of Louisville-based Kentucky Hospital Association and Kennan Wethington is president of Louisville-based Anthem Blue Cross and Blue Shield in Kentucky.
