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What to expect from a Biden administration: Web Summit 2020

Yahoo Finance's Anjalee Khemlanie speaks with with Oscar Insurance CEO Mario Schlosser and emergency physician Dr. Leana Wen about the future of healthcare.

Video Transcript

MARIO SCHLOSSER: I think to me one of the most fundamental insights about why US healthcare is screwed up is when you look at any kind of scatter plots. Any kind of chart that tries to plot quality of some entity in US healthcare versus cost of that entity in US healthcare. If you take physicians in the city, for example, you look at kind of some metrics of quality versus the metrics of total cost of care driven by that particular physician.

If you look at hospitals in the city and on those kinds of metrics, those are never correlated. There's almost no correlation in the US healthcare between cost and between quality. And that is frankly, the fundamental issue.

It also means that almost for anything you need in the US healthcare system, you will be able to find a very efficient physician, hospital, drug, medical [INAUDIBLE] and whatever else that also does a really good job of addressing the issue you have and healing the issue you have. And so when it comes to things like drug pricing for example, I think the most important thing we've got to engineer is a shift towards value. Towards getting paid for outcomes.

That's what's missing right now. You have drugs of very similar efficacy, yet very, very different price points. And that's-- the sort of like market forces that in a supposedly free market system like the US healthcare system that you're supposed to have, you just don't have.

You don't have that transparency of information flowing through the system. You don't have that care level of choice in the system that would put the pressure on those prices coming down. Those manufacturers getting driven more by outcomes, more by value, and that we got to bring in.

Concretely this could mean that drug companies somehow get made to focus more-- get paid more by outcomes. And when we say, I'm going to shoulder the burden of a disease. And if my drug would bring down the cost of managing that disease because the member gets healthy more quickly, then I can make money on the back end. That's where we should be going.

Dr. Wen earlier mentioned some telemedicine reimbursement. I think that's extremely important there as well. The shift towards telemedicine is a unique opportunity for us to bend the cost curve down, because we can get people to practice more the top of their license. We can reduce the variance of care by algorithm, defining it more and things like that. But it's gotta go hand-in-hand with a shift towards value on the physician side as well.