Health Industry Officials Offer $2 Trillion Savings Plan To The White House

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"Health industry officials delivered a plan to the White House Monday documenting how they'll attempt to save $2 trillion over a decade through measures like reducing hospitalizations and cutting down on paperwork," the Associated Press reports. "Health insurers, doctors, hospitals, drug-makers and others were under pressure to make good on a pledge they made last month to curb their own costs to help President Barack Obama achieve his health care overhaul goals." Their three big areas of savings: $150 billion to $180 billion would come from more efficient use of health care services, $350 billion to $850 billion from better management of chronic diseases, and $500 billion to $700 billion through administrative improvements such as standardizing claim forms (Werner, 6/1).

The Wall Street Journal/Dow Jones Newswires reports that the groups "held seven 'all-day meetings' to flesh out how they would save the huge sum of money. In a statement Monday, the organizations said they had made 'solid progress' on their goal and would now pursue the changes they identified."

The cost savings, which come from a "wide variety of sources," were detailed in a Monday letter to Barack Obama. The America's Health Insurance Plans, a trade group which represents managed-care companies, "pointed to efforts toward 'fully automating and standardizing' health insurance claims and payments."

"The American Hospital Association said it would seek to prevent infections, which can lengthen the duration of hospital stays. The American Medical Association, which represents doctors, identified ways to cut down on readmissions of patients into hospitals and prevent the overuse of some imaging procedures" (Yoest, 6/1).

The coalition's letter to President was signed by the leaders of the American Medical Association, America's Health Insurance Plans, Pharmaceutical Research and Manufacturers Association, American Hospital Association, Advanced Medical Technology Association and the Service Employees International Union.

This information was reprinted from kaiserhealthnews.org with kind permission from the Henry J. Kaiser Family Foundation. You can view the entire Kaiser Daily Health Policy Report, search the archives and sign up for email delivery at kaiserhealthnews.org.

© Henry J. Kaiser Family Foundation. All rights reserved.