Health Care Industry Vows to Control Costs

Members of the health-care industry say they can bring $2 trillion in savings from projected increases over the next decade.

The White House projects a savings of $2,500 per year in lower premium payments for a family of four. An administration official, who spoke on the condition of anonymity, reported that within 10 years the savings would eliminate the nation's budget deficit. Due to the nature of the plan the offer remains tentative. The groups did not explain how they would reach such a lofty sum. To attain the proposed savings the groups say they plan to trim 1.5 percent per year. The groups making the pledge include the American Medical Association, the Pharmaceutical Research and Manufacturers of America, the Service Employees International Union, America's Health Insurance Plans, and American Hospital Association. In a letter to President Obama they wrote, "We are developing consensus proposals to reduce the rate of increase in future health and insurance costs through changes made in all sectors of the health system. We are committed to taking action in private-public partnership to create a more stable and sustainable health care system." There was no extensive explanation of their proposal.