By Noam N. Levey , Tribune Newspapers|May 11, 2009
WASHINGTON - — WASHINGTON - - Leading health industry groups have agreed to slow the explosive growth of health-care spending, according to administration officials and others knowledgeable about the agreement.
Hospitals, drug makers and doctors, among others, wrote a letter to President Barack Obama outlining their plan, which estimates $2 trillion in savings over the next decade. The letter lacks much detail, but suggests savings could come from simplified billing, restructuring the way hospitals are paid and using more information technology, among other steps.
Obama plans to promote the letter at a White House event Monday but in remarks Sunday warned of the risks of leaving the system untouched.
"We cannot continue down the same dangerous road we've been traveling for so many years, with costs that are out of control, because reform is not a luxury that can be postponed, but a necessity that cannot wait. That is why these groups are voluntarily coming together to make an unprecedented commitment."
Although the agreement does not outline any industry commitments to accept specific reductions in revenue, it does signal continued engagement by powerful health-care interests in the Obama administration's effort to overhaul the nation's troubled health-care system.
Several industry groups - including insurers, whose lobbying group signed the letter - have played central roles in defeating prior efforts to reshape the system, including the Clinton administration's push in the mid 1990s. Now, they may benefit by helping to shape any legislative package that emerges in the coming months. Insurers, for instance, oppose a government-coverage option, which they view as a potential rival.
Signatories include the American Medical Association; the American Hospital Association; the Pharmaceutical Research and Manufacturers of America; the Advanced Medical Technology Association, which represents device makers; America's Health Insurance Plans, which represents insurers; and the Service Employees International Union, which shepherded the agreement.
Many members of those groups, whose leaders have been working for weeks behind closed doors on the letter, could lose some money if health-care spending were substantially slowed.
But as the nation's health-care tab consumes an ever greater share of the economy, controlling costs has become a central priority for policymakers in Washington.
