NY regulator to push alternative health care payments

New York's top insurance regulator says most health insurance in the state pays hospitals and doctors for each service regardless of quality, efficiency or outcome, and his staff will try to encourage alternatives to reduce costs and improve health.

Department of Financial Services Superintendent Ben Lawsky says their recent survey shows every major insurer in New York's commercial market is making some effort at payment reform, like "pay-for-performance" or pay-per-member fees for health care.

However, the pilot projects account for less than 15 percent of payments.