SAN FRANCISCO — A top drug executive said Monday he had expected Obamacare to boost hospital use more than it has and offered a mixed review of the healthcare law.
Johnson & Johnson CEO Alex Gorsky said the law hasn’t increased hospital use as much as expected.
“The theory was we would get more people insured in this country and therefore we would see more utilization,” Gorsky said at the JPMorgan Healthcare Investor Conference. “I think we’ve seen a bit of a different outcome.”
Gorsky listed aspects of the healthcare law he views a success and outlined problems he thinks need fixing. Among the positives: The expansion of health coverage to millions of previously uninsured Americans and coverage guarantees for those with pre-existing conditions and young adult child on their parents’ plans.
But Gorsky outlined ongoing challenges of cost for consumers and rapidly growing health spending. “The challenge, of course … is truly bending the cost curve,” he said.
Some onlookers credited Obamacare for a temporary slowdown in health spending growth, which had coincided with the recession. But spending is ticking upward once again, growing 5.5 percent between 2014 and 2015.
Gorsky also noted that most consumers in the Obamacare marketplaces bought bronze or silver level plans, many of which carry high deductibles and more co-payments in exchange for lower monthly premiums.
“One of the big issues we face in the pharma area is the co-pays can be four times what you see for a hospital procedure,” he said.
Asked about the prospect of Congress repealing and replacing the healthcare law, Gorsky said change needs to occur “one way or another.”
“I think that is what the next couple years will be about — how do we preserve some of the positive aspects [of the healthcare law] but make some necessary changes to be successful,” he said.
