Clayton Christensen Institute Reveals ACA’s Potential to Disrupt Health Care System

Through Lens of Disruptive Innovation, New Report Provides Roadmap for Innovators

Clayton Christensen Institute Reveals ACA’s Potential to Disrupt Health Care System

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Nonprofit and nonpartisan think tank the released a study today that explores the highly controversial Patient Protection and Affordable Care Act (ACA) through a previously unexplored perspective: Its conduciveness for . offers new insights on the legislation and outlines specific provisions with the greatest potential to facilitate disruption. To learn more, download the entire study here: .

“By their nature, disruptive innovations invariably decrease cost and increase accessibility. In doing so, they fundamentally transform entire industries,” said , executive director of health care at the Christensen Institute and coauthor of the report. “This type of innovation is precisely what we need to reverse the current trajectory of health care costs in America.”

According to the report, the provisions most likely to foster disruptive innovation include: Employer Mandate, Individual Mandate, Accountable Care Organizations, Wellness Programs and the CMS Innovation Center. Conversely, the provisions most likely to inhibit disruptive innovation include: Essential Health Benefits, Insurance Exchanges, Cost-Sharing Requirements, Medical Loss Ratio and Medicaid Expansion.

The report predicts that the Employer Mandate will provide the greatest opportunity for innovation as employers seek alternate health benefit models in order to manage expanding costs. This could facilitate a substantial disaggregation in the insurance industry and open doors for new and disruptive health services options.

“From the perspective of disruptive innovation, the ACA is neither wholly good nor bad,” said Wanamaker. “The purpose of our analysis is to provide a useful roadmap for innovators and policymakers to navigate the opportunities and challenges embedded in the law.”

() is a nonprofit, nonpartisan think tank dedicated to improving the world through disruptive innovation. Founded on the theories of Harvard professor Clayton M. Christensen, the Institute offers a unique framework for understanding many of society’s most pressing problems. With an initial focus on education and health care, the Christensen Institute is redefining the way policymakers, community leaders, and innovators address the problems of our day by distilling and promoting the transformational power of disruptive innovation.

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