Health Groups Vow Cost Control Measures That Could Erase Budget Deficit Within 10 Years

[ClarkUSA]

Wow. This sounds very promising.

Volunteering to "do our part" to tackle runaway health costs, leading groups in the health-care industry have offered to squeeze $2 trillion in savings from projected increases over the next decade, White House officials said yesterday.

The pledge comes amid a debate over how, or whether, to overhaul the nation's health-care system, and Obama administration officials predicted that it will significantly increase momentum for passing such changes this year... groups aim to achieve the proposed savings by using new efficiencies to trim the rise in health-care costs by 1.5 percent a year, the officials said. That would carry huge implications for the national economy and the federal budget, both of which are significantly affected by health-care expenses.

Representatives from half a dozen health industry trade groups are scheduled to make a formal offer today in a White House meeting with President Obama.

"I don't think there can be a more significant step to help struggling families and the federal budget," a senior administration official said in a conference call with reporters. The official spoke on the condition of anonymity because the offer remains tentative.

The White House projects that the savings after five years under the proposal would mean about $2,500 a year in lower health-care bills for a family of four. Within 10 years, the savings would "virtually eliminate" the nation's budget deficit.

These groups have apparently decided they want to be part of the solution during this pivotal time in history. It's nice to see that some leaders in the health-care industry have decided to voluntarily step up to the plate.

[patrice]

1. The DEVIL is in the details of "cost efficiencies". nt

[trayfoot]

2. Sounds interesting......

yet I am extremely skeptical that this is a good faith promise. I don't think we can believe these people who have have doomed 1000s to die by refusing insurance or care. I sincerely hope that President Obama is not taken in by these greedy bastards!

[ClarkUSA]

11. The groups plan to "streamline administrative costs, better coordinate care and bundle payments."

That said, specifics of the proposal will not be known until after the groups present their ideas to President Obama later today.

[firedupdem]

3. Sadly, these people cannot be trusted. Their goal is profit and

they don't care who goes without health coverage or dies to get it. I'm sure the President isn't going to just accept this on their promise. While this is good, we need a public option now!

[ClarkUSA]

6. President Obama is using a carrot-and-stick method to accomplish his aims. Read this -->

Their offer is the latest attempt by the health-care industry to secure a seat at the bargaining table, as Democrats consider legislation that would simultaneously hold costs in check and extend coverage to millions of uninsured Americans... White House officials said many of the cost reductions would be "crucially dependent" on legal changes being contemplated in Congress as part of a health-care reform package.

The groups will have to streamline administrative costs, better coordinate care and bundle payments to achieve the projected savings. If they can slow the spiraling increases in health-care costs, it would greatly improve the prospects for expanding coverage to the 46 million uninsured Americans.

Experts estimate that extending coverage to every American will cost $1 trillion to $1.5 trillion over the next decade, much of the money going to start-up expenses. Over the longer term, Obama and some analysts expect to accrue savings from technological improvements and more appropriate, less unnecessary care.

The United States spends about $2.2 trillion a year on medical care, representing about 16 percent of the nation's overall economy. And the federal government has a big interest in lowering the cost of health care, given the hefty expense of its Medicaid and Medicaid coverage.

[firedupdem]

12. Thanks ClarkUSA

I like this part:

cost reductions would be "crucially dependent" on legal changes being contemplated in Congress as part of a health-care reform package.

[ClarkUSA]

14. Yeah, these groups know that lawmakers are contemplating much more drastic cuts.

At least, the movement towards national healthcare is going forwards and not stalling. With President Obama being the lead negotiator on our behalf (remember he works for us, as he likes to say), I feel hopeful.

[pleah]

4. So, who are they going to deny coverage to cut cost?

:shrug:

I don't trust them.

[Phoebe Loosinhouse]

5. a 2500 a year reduction in costs in year 5. Big Deal.

I am completely underwhelmed.

Voluntary? They have been dragged kicking and screaming towards reforming their conscienceless health for profit, death by spreadsheet industry. Now they finally toss a coin from their carriages to the rabble and we're supposed to be grateful?

[patrice]

7. "Death by spreadsheet" - Thanks for that one. I will USE it!

:hi:

[Phoebe Loosinhouse]

18. I didn't coin it. Google that or it's counterpart "murder by spreadsheet"

and you'll come up with any number of horrifying instances where the decisions of the for-profit healthcare industry send someone hurtling towards an untimely death.

This link concerns an especially egregious example that mobilized the California Nurses Association on one patient's behalf.

http://www.dailykos.com/story/2007/12/20/92943/929/400/424700

[ClarkUSA]

13. "Advocates for expanding health-care coverage applauded the industry's avowed commitment yesterday."

"We are glad to see major industry trade groups approach the president with an offer to get health-care costs under control in a system that covers everyone, and we appreciate their emphasizing the urgency of health-care reform," said Richard Kirsch, national campaign manager of Health Care for America Now, which calls itself a national grass-roots organization pushing for expanded health-care coverage.

I, like Mr. Kirsch, am not loathe to give credit where credit is due. That doesn't negate past wrongs, of course, but most folks are trying to move forward and not look back.

[Phoebe Loosinhouse]

15. "move forward and not look back"

The most vacuous phrase in the world that is currently popular in trying to bury the wrongdoings and reward the miscreants re the financial industries, torture and now healthcare.

[ClarkUSA]

17. Rather than complain ad nauseum, how about reading the story and offering constructive feedback?

I'm more interested in looking forward to the upcoming healthcare reform solutions as outlined by my OP than be distracted by red herrings.

[Phoebe Loosinhouse]

20. I did read the story and posted it's NYT counterpart in GD earlier this morning

contained within this WP story that has you so excited and upbeat is the following:

"Despite such heady predictions, many aspects of the plan remain unclear. The groups did not spell out yesterday how they plan to reach such a target, and in a letter to Obama they offer only a broad pledge, not an outright commitment.

In addition, White House officials said, there is no mechanism to ensure that the groups live up to their offer, only the implicit threat of public embarrassment. And it would be difficult to track whether they come up with the promised savings, other than the imprecise measure of comparing current projections of health-care cost increases with future actual costs.

Nonetheless, White House officials were optimistic about the offer from industry officials, who previously tried to put up obstacles to health-care reform."

To recap:
They don't say HOW they will do it, they offer a "pledge" and not a commitment, overseen only with the "threat of embarrassment"

Hey, that's some good stuff! This is the Lucy-with-the-football healthcare insiders conning the Charlie Brown public as ever. But, please, continue spinning.

[ClarkUSA]

22. We'll see. I'll take being upbeat about the future than your negative spin any day of the week.

As I have said, this is a promising opening gambit in the ongoing healthcare reform debate.

Their offer is the latest attempt by the health-care industry to secure a seat at the bargaining table, as Democrats consider legislation that would simultaneously hold costs in check and extend coverage to millions of uninsured Americans... White House officials said many of the cost reductions would be "crucially dependent" on legal changes being contemplated in Congress as part of a health-care reform package.

The groups will have to streamline administrative costs, better coordinate care and bundle payments to achieve the projected savings. If they can slow the spiraling increases in health-care costs, it would greatly improve the prospects for expanding coverage to the 46 million uninsured Americans.

It's better to have these groups working with President Obama and Congress than against them. Everyone needs to be at the table in order to reach a workable consensus. I have no problem with it because it's the only way Congress will pass national healthcare.

[Autumn]

8. I'm sure that is just what they will do

in fact I will use my savings under their plan buy a bridge that I have heard is up for sale.

[Sensitivity]

9. This just confirms the massive RIP-OFF OR WASTE-OFF that has been going on

and is endemically supported by the system as it currently set up.

[democrattotheend]

10. Not sure what to think of this

I'm skeptical because I am loathe to trust health insurance companies, but some pretty progressive groups seemed to applaud this, so maybe it's not so bad. I think what's going on here is that they are trying to avoid the creation of a public option by making other concessions. I would prefer a public option but I also want something to get passed, and if the public option is not going to happen then I guess I'm glad the insurance companies are cooperating instead of trying to sabotage it. I guess the devil is in the details...

[ClarkUSA]

16. It's a promising open gambit to get the ball rolling in earnest towards healthcare reform.

Your assessment is sensible. President Obama and Congressional Democrats have them over a barrel and they know they'd better play or they'll pay.

[annabanana]

19. Yeah... self policing always works out so well....

I know I trust them to do the right thing because...

well, just because.

[ClarkUSA]

21. Point acknowledged but the WaPo article makes clear the reasons why these groups want to do this.

Their offer is the latest attempt by the health-care industry to secure a seat at the bargaining table, as Democrats consider legislation that would simultaneously hold costs in check and extend coverage to millions of uninsured Americans... White House officials said many of the cost reductions would be "crucially dependent" on legal changes being contemplated in Congress as part of a health-care reform package.

The groups will have to streamline administrative costs, better coordinate care and bundle payments to achieve the projected savings. If they can slow the spiraling increases in health-care costs, it would greatly improve the prospects for expanding coverage to the 46 million uninsured Americans.

Democrats are considering much deeper cuts. We'll see what the end product of all this dickering will be but at least the bargaining has begun.

[avaistheone1]

24. This ought to work as well as the bankers policing themselves.

:rofl:

[ClarkUSA]

23. Heads-up! President Obama will be giving a speech about this at 12:30 p.m. ET live on MSNBC