Medical groups aim to cut $2T in health care costs over 10 years

by Lesley Politi on May 21, 2009

Cutting cost will have to come from every avenue of the Medical Industry, not just Health Insurance. Drug companies need to lower the costs, all medical testing and Hospitalization will need to help out as well to make costs be lowered.
WASHINGTON — President Obama on Monday praised health care industry groups for coming together to try and cut $2 trillion in expenses over the next decade to slow the rising cost of medical care.

At a White House news conference flanked by industry officials, Obama called the meeting of officials “who often fought with each other” a “historic day, a watershed event in the long quest for health care reform.”



“We can’t continue down the same dangerous road we’ve been traveling for so many years, with costs that are out of control,” Obama said.

Obama called the step officials took Monday part of a “broader effort” to reform health care. The groups have pledged to cut the rate of growth of health care spending over the next 10 years.

Obama said Monday it could save the typical family an average of $2,500 a year in health care costs.

“If these savings are truly achieved, this may be the most significant development on the path to health care reform,” said Ron Pollack, executive director of Families USA, which advocates for expanded health care coverage. “It would cut health costs for families and businesses, and it would enable adequate subsidies to be offered so that everyone has access to quality affordable health care.”

Six medical trade groups, including the American Medical Association and America’s Health Insurance Plans, which represents health insurance companies, have agreed to the cost-cutting. Health care costs would continue to rise, just not as quickly.

Democratic lawmakers are developing a plan to expand coverage to more of the 46 million people the Census Bureau estimates are uninsured. A major obstacle to that effort is the rising cost of health care, which has grown to $2.2 trillion a year, according to the Congressional Research Service.

Karen Ignagni, president of America’s Health Insurance Plans, suggested a similar idea in congressional testimony in March.



“Cost savings of this magnitude could go a long way toward ensuring that every American has access to affordable, quality coverage,” Ignagni said. “These savings could help finance part of the costs of providing coverage to the uninsured.”


Seeing all the different parts of the Medical Industry come together to discuss and brainstorm is really the only way to get the costs down. Insurance Companies and Doctors/Hospitals need to work together to help keep their contracts beneficial to everyone so medical costs do not keep sky rocket.



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