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Health care cutting for stake in reform

U.S. President Barack Obama, center, delivers remarks about health care reform at White House with Cedars-Sinai Health System President and CEO Tom Priselac, left, and Kaiser Foundation Health Plan Chairman and CEO George Halverson, right

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TEXT OF STORY

Tess Vigeland: In the decades-long stare-down over the cost of health care in this country, the health system blinked today.
A coalition of interest groups pledged to carve $2 trillion worth of savings out of the nation's health-care system over the next 10 years. At a White House meeting with President Barack Obama today, doctors, drug companies, health insurance and hospital administrators said they would do their part to bring costs under control. But in return, they want a seat at the table in any talk of health-care reform. Our Washington bureau chief John Dimsdale has the story.


JOHN DIMSDALE: President Obama reminded health-care stakeholders of two powerful interest groups that favor reform:

PRESIDENT BARACK OBAMA: What is a growing crisis for the American people is also becoming an untenable burden for American businesses.

The health-care industry understands reform is in the offing. And to help avert a competing government-run system, they'll find savings on their own. Though the savings only cut a percent and a half in the growth of health-care costs each year, experts say that's significant.

The president-elect of the American Medical Association, Dr. James Rohack, was at today's White House meeting:

JAMES ROHACK: We all, of those who are involved with health care, know that we have some waste in our system of overuse, under-use and misuse.

For example, he says unnecessary medical tests could be avoided if a patient's doctors could share results. Henry Aaron is a long-time reform advocate at the Brookings Institution. He says it's admirable the industry wants to save money.

HENRY AARON: But they are legally responsible to their members and shareholders. They have to represent the interests -- private interests -- of those people.

Interests not necessarily advanced by cutting back on health-care treatments. But Ron Pollack at Families USA is encouraged health-care providers aren't campaigning against reforms.

RON POLLACK: They are enabling themselves to become participants in the health-reform process. And have a voice in it.

Pollack says President Obama learned from President Clinton who excluded the health-care community that it's better to keep all sides in the loop.

In Washington, I'm John Dimsdale for Marketplace.

About the author

As head of Marketplace’s Washington, D.C. bureau, John Dimsdale provides insightful commentary on the intersection of government and money for the entire Marketplace portfolio.
Bill Rieken's picture
Bill Rieken - May 11, 2009

"Hello. We're from the Health Insurance Industry and we're here to help you."

Singlepayer Central's picture
Singlepayer Central - May 11, 2009

Kill people - that's one commenter's idea. Probably someone who had a miserable relationship with their possibly elderly parents. Cost containment can only come from cutting. There are only THREE items that can be cut: 1. Patients 2. Providers 3. Insurers Look, SOMEBODY is going to lose here. You have to decide which it is. As one who has worked for both insurers and providers, I say cut the insurers. They do not provide care and do absolutely nothing to further it. Actually the figure bandied about is 1.5% cut that was talked about. Big f deal. A 'single payer' system would cut $3.5 TRILLION. But so far, the COURAGE required to just f'ing do it is rapidly disappearing. If the above multiple choice question is just too complicated for all of those MBAs, CEOs, CFOs, and Ph.D's, here is a simpler version: Do all Americans have the right to LIFE? 1. Yes 2. No If the answer is YES, then go find profit in some other market. If NO, pray you don't get sick.

ron labbe's picture
ron labbe - May 11, 2009

How's this for an idea: people who sign DNR's get a big discount on healthcare? Since a huge portion goes into keeping people alive at the "end of life", those who decline that expensive option should not have to pay for those who opt to have medical science keep them alive as long as possible no matter what it costs...