A couple of days ago, Obama was full of enthusiasm about the "promise" of leaders of the health care industry to cut the rate of health care spending.
“These groups are voluntarily coming together to make an unprecedented commitment,” Mr. Obama said. “Over the next 10 years, from 2010 to 2019, they are pledging to cut the rate of growth of national health care spending by 1.5 percentage points each year — an amount that’s equal to over $2 trillion.” [New York Times]
People like my co-blogger, Deb Cupples, who've actually been watching the health care industry over a number of years weren't quite as excited as Obama about the industry's "commitment." "Instead of simply reducing how high health-care costs rise, companies should be outright reversing the price gouging they've engaged in over the past eight or ten years," Deb grimly pointed out, going on to demonstrate just how right she is.
Anyway: Obama said they'd made a "commitment" not to gouge us any worse, and to start right away cutting costs every year, and many applauded. Watch now as the industry leaders who attended the meeting with Obama walk that one back!
Health care leaders who attended the meeting have a different interpretation. They say they agreed to slow health spending in a more gradual way and did not pledge specific year-by-year cuts.
“There’s been a lot of misunderstanding that has caused a lot of consternation among our members,” said Richard J. Umbdenstock, the president of the American Hospital Association. “I’ve spent the better part of the last three days trying to deal with it....
Richard J. Pollack, the executive vice president of the hospital association, said: “The A.H.A. did not commit to support the ‘Obama health plan’ or budget. No such reform plan exists at this time.”
Moreover, Mr. Pollack wrote, “The groups did not support reducing the rate of health spending by 1.5 percentage points annually.”
He and other health care executives said they had agreed to squeeze health spending so the annual rate of growth would eventually be 1.5 percentage points lower.
Under existing law, the Department of Health and Human Services estimates that health spending will grow an average of 6.2 percent a year in the coming decade, to $4.4 trillion in 2018.
Two other lobbyists who attended the White House meeting confirmed Mr. Pollack’s account...One of the lobbyists, Karen M. Ignagni, president of America’s Health Insurance Plans, said the savings would “ramp up” gradually as the growth of health spending slowed. [New York Times].
More on this at Memeorandum.
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Though President Obama has said about a cut in the rate of health care spending yet people are a little apprehensive about this. Lets wait and watch how things turn out in the near future.
Posted by: EMR | May 21, 2009 at 05:54 PM
This is quite a comprehensive posting about President Obama’s stand to lower the cost of health care. I guess I would be apprehensive about the effect in the coming days.
Posted by: Secondary Rhinoplasty Beverly Hills | May 28, 2010 at 10:51 AM
Things are not all that bad...there have been a bad economy and cut on various things but so far th health care program isn't that bad.What say?
Posted by: Atlanta Plastic Surgeons | December 02, 2010 at 11:44 AM