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Spending cuts help Obama's health plan
By Philip Elliott |
May 12, 2009, Tuesday
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Print Edition
Print Edition
UNITED States President Barack Obama's plan to provide medical insurance for all Americans took a big step toward becoming reality Sunday after leaders of the health care industry offered US$2 trillion in spending reductions over 10 years to help pay for the program.
Hospitals, insurance companies, drug makers and doctors told Obama yesterday that they will voluntarily slow their rate increases in coming years in a move that government economists say would create breathing room to help provide health insurance to an estimated 50 million Americans who now go without it.
The United States, unlike other developed countries, does not have universal health care.
With this move, Obama picks up key private-sector allies that fought former President Bill Clinton's effort to overhaul health care. Although the offer from the industry groups doesn't resolve thorny details of a new health care system, it does offer the prospect of freeing a large chunk of money to help pay for coverage. And it puts the private-sector groups in a good position to influence the bill US Congress is writing.
Six major groups plan to deliver a letter to Obama and pledge to cut the growth rate for health care by 1.5 percentage points each year, senior administration officials said.
Obama has offered an outline for overhauling the health care system, and he wants Congress to work out the details and pass legislation this year.
His plan would build on the current system in which employers, the government and individuals share responsibility for paying the cost and care is delivered privately.
Hospitals, insurance companies, drug makers and doctors told Obama yesterday that they will voluntarily slow their rate increases in coming years in a move that government economists say would create breathing room to help provide health insurance to an estimated 50 million Americans who now go without it.
The United States, unlike other developed countries, does not have universal health care.
With this move, Obama picks up key private-sector allies that fought former President Bill Clinton's effort to overhaul health care. Although the offer from the industry groups doesn't resolve thorny details of a new health care system, it does offer the prospect of freeing a large chunk of money to help pay for coverage. And it puts the private-sector groups in a good position to influence the bill US Congress is writing.
Six major groups plan to deliver a letter to Obama and pledge to cut the growth rate for health care by 1.5 percentage points each year, senior administration officials said.
Obama has offered an outline for overhauling the health care system, and he wants Congress to work out the details and pass legislation this year.
His plan would build on the current system in which employers, the government and individuals share responsibility for paying the cost and care is delivered privately.
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