AP Source: $2 Trillion Offered in Health Savings

Source: The NY Times

WASHINGTON (AP) -- Top representatives of the health care industry plan to offer $2 trillion in cost reductions over 10 years in a bid to help pass President Barack Obama's health overhaul, a source familiar with the negotiations said Sunday.

Industry officials representing health insurers, hospitals, doctors, drug makers and a major labor union plan to be at White House on Monday to present the offer.

Costs have emerged as the biggest obstacle to Obama's ambitious plan to provide health insurance for everybody. The upfront tab for the federal government from Obama's proposed expansion of health coverage will be due right away while the savings he expects from wringing waste and inefficiency from the health care system will take longer to show up.

A source outside the administration told The Associated Press that the savings would come from slowing projected cost increases by a small percentage each year for 10 years. The result over time would be an estimated $2 trillion in savings on health care costs. The source requested anonymity in order to speak before the public announcement.

Read more: http://www.nytimes.com/aponline/2009/05/10/us/politics/AP-US-Health-Overhaul-Savings.html?_r=1

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Let's see... we currently spend $2 trillion each year on health care, so that sounds like it would be an 7% or so cut per year, compounded over 10 years. Or roughly $140 billion per year.

On the other hand, if we have single payer, it should save at least 30% a year if our health care costs dropped to those of the most-expensive other first world countries. That would be about $700 billion a year, or five times more savings.

And, this small offer from the private health care syndicate could be yanked in a few months after they get their way. There won't be a guarantee that rates will be X in year Y; only a pretty smile from people making large contributions to politicians.

My guess is that Obama and the Battlin' Congressional Democrats will use this tiny offer to show how incredibly helpful their non-single-payer, non-government-option efforts have been. Amd most of us will buy it - even most on this site, unfortunately.

BOHICA. But we get what we deserve.

executive salaries by much, if any.

Everyone knows this is bullshit... let's see if our politicians care.

He's a total sell-out. Good riddance.

:thumbsdown:

as they had planned for the next 10 years. They'll still have increases, but they'll throw a few crumbs. Maybe that means the policy I was last quoted 3 years ago at $12,000 will only be $14 or $15,000 instead of $20,000. These folks are all heart.

"Costs have emerged as the biggest obstacle to Obama's ambitious plan to provide health insurance for everybody."

The article is wrong. The President's plan does NOT require everybody to have health insurance. This would result in the young and healthy NOT opting for health insurance. This would result in the older and sicker elevating the total costs of any plan. In order to work, everyone must be required to have health coverage.

"In order to work, everyone must be required to have health coverage."

The problem is a growing number of people cannot afford health insurance. What is it about reality that some, particularly some in Washington, just don't get?

How are you going to force people to have health insurance? Are you going to force the single mother working for minimum wage and barely covering rent and utilities to have health insurance by having the cost dedcuted from her paychecks? How will she pay the rent?

That sounds more like something the Republicans would come up with. The Republicans already scammed us once with regard to insurance companies claiming tort reform would lower health costs. All it did was lower the amount of damages you can get which the insurance companies pay.

Medicare needs to be expanded to include all. And there has to be a realistic "table" in terms of how much you pay per how much you earn.

Socialized medicine? You bet. It's the only way the majority of Americans will ever have decent health care.

This is really just a bail-out for the insurance industry. They are all in the same shape as AIG - most no longer have the ability to cover what they've insured. Including our health.

they are lapping it up.

we will never mature as a country until all it`s citizens are guarantied heath care.

"Beware Greeks bearing gifts".

Eight years of litigation to "Lower Cost" and not one ruling from a Federal or State court based on fact or law. Our government at work with corruption leading the way. Its called Pay-to-Play. What a Country!!!

http://www.medicalsupplychain.com/pdf%5CSettlement%20Letter%20to%20Jeffrey%20Immelt.pdf

http://www.prweb.com/releases/2005/11/prweb315878.htm

http://www.medicalsupplychain.com/news.htm

... we'll throw you a crumb and then you look the other way... sound good to you Mr. Obama? OK then... You got it Buddy.... High Five...

Regulate us to save us from ourselves is the message here

Where are the extra profits from the cost increases going?

:sarcasm:

.........with NO deductibles AND NO copays. But I think anybody at this particular time would say with the massive armies of money and insurance companies, PHRMA, and maybe most importantly the MSM, it ain't gonna happen. My opinion what Obama is trying to do is get the foot in the door with a "public" plan for people that can't afford "regular" insurance. At least there will be this "public" plan in place that can (hopefully) be built on until you have everyone covered by "Medicare". Look what happened with the original "bail out" plan, so many people called their congress people and wrote their newspapers etc that it didn't pass the first time. BUT, then what happened?

But that seems like all the more reason to raise Hell, especially with our Congresspersons, who can pass laws.

Raise hell with our Congresscritters that is.

must mean that they are worried Americans are going to stand tall on this issue (for a change.)

we could have with single payer health care.

Come on -- this is classic carrot on a stick -- offer the schlubs a little bit, not the actual REAL savings that would happen with insurance kicked out of the equation. And a good many of those morons would lap this shit up. But it's NOT what we should be getting.

Drop in the bucket folks. Stay strong on single payer!

will be wasted lobbying for more "corporate-friendly" Congresspeople?

This plan just delays their profits... given the nature of politics, a holding pattern is a win for the swine who want to feed off the American public. And a motivation to throw even more money into the political process.

The more I think about this, the more I think it sucks.

We need something irreversable, or at least something very difficult to reverse.

I became so angry reading this story, this plan is such garbage, a gradual decrease in costs? So a rip off $40,000 bill will now be $39,000? I'd also like to know what doctors and other health care professionals are checking off on this - certainly not any of the large percentage of those folks who are for single payer.

How stupid do they think we all are? Oh - on second thought 40 million or so of us voted for president not once but twice for a mentally challenged person who was a walking malapropism trying to speak.

Why can we not go to single payer/non profit while the rest of the western world has it? They seem to be doing fine with it.

What possible justification is there for having a huge bloated, expensive entity, with bean counters and CEO's, between people and their doctors?

This is only about huge chunks of money - they make it from our deaths and suffering while they deny, so they have nice bundles left over to buy the Baucuses of the world off.

I hope people ring the phones in Washington off the hook tomorrow!

Health Care is a matter of public safety.

groups that do not follow through. All we have is their "good word". Bullshit.

Which is what I expect.

Go Obama!

laughing their asses off. And our President is standing on the sidelines acting as if he considers this to be a win for the people of this country.

This is outrageous!!

They're acting as if it's a done deal and they haven't even finished the hearings OR heard a word from the Single-Payer advocates.

I know that President Obama said he was for madating insurance coverage, but this is a major political screwup and it's going to come back to bite him on the ass. Big time.

want to cut prices????

2 fucking trillion dollars worth????

jesus jumping through a flaming hoop!!!

2 trillion fucking dollars!!!

Think about this, they can cut that much and still make a fucking profit!!! What is wrong with this picture folks???

Dump these dumb mother fuckers!! don't let them prevent single payer healthcare, don't let their greed and their market tested bullshit snow you!!!

Let them twist in the god damn wind. They are worried, they are pulling out all stops to prevent us all from having.

If they didn't think national single payer wouldn't work, they wouldn't make this bizarre offer. Screw them!

Single payer now!!!

while many of us simply have to die. Europe has it. Why can't we? I read that America is now ranked #38 in the world! Insurance companies are laughing!

Source: CNN

President Obama will announce Monday that he has secured the commitment of several industry groups to do their part to rein in the growth in health care costs.

This pledge from the private sector could reduce the growth in health care spending by 1.5 percentage points a year, for a savings of $2 trillion over 10 years, a letter from the groups will promise, according to a senior administration official. Overall, it could amount to a 20% reduction in the growth of health care spending.

Six trade associations representing unions, hospitals, insurers and the drug industry have signed on to the commitment.

However, the savings depend in part on Congress passing health care reform this year.



Read more: http://money.cnn.com/2009/05/10/news/economy/obama_healthcare_reform/index.htm

the insurers are "ok" with that's ok with me...

Once most Americans can no longer afford health care insurance or health care, then...they will have to relent.

If no public options--then we must reject it!

Having business support for an overhaul of health care can be a good thing. Do get this done you need powerful allies, and many industries now realize that the current arrangement in health care is not in their best interests. On the other hand, any reform that the insurance companies have signed off on as acceptable to them should be viewed as suspect to the rest of us.

"Six trade associations representing unions, hospitals, insurers and the drug industry have signed on to the commitment."

:eyes:

"The President is set to announce promised cost savings from insurers, hospitals and the drug industry". :rofl:

Tell me Obama is not so naive he actually believes these crooks. He must understand that they were being facetious when they said "Sure, Mr. President, we agree to make less money for our shareholders."

I totally agree...i just cant bring myself to believe that these companies would be willing to make real changes for the sake of the people.

I think that instead of trying to oppose the reform openly; they might try to corrupt/sway it from within.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3870495&mesg_id=3870495

Next, the Mafia will promise to steal 8% less each year than it would have.

(Dear God, are we stupid.)

career politicians babbling endlessly about the SMALL BUSINESSES that are the back bone of America, create more jobs, blah, blah, blah, blah. But when the rubber meets the road you don't give a rat's ass what the effect is on SMALL BUSINESSES.

The same interests are writing this legislation that have been seated at the table, and it ain't groups who are looking out for the health and welfare of the American people. It's people who are looking out for their bottom lines.

This is a travesty.

SCREAM, RANT, AND RAVE TO YOUR SENATORS AND CONGRESSIONAL REPS.

Nowhere do I read anything about patient care, or improved access to medical procedures, or anything related to wellness.

It seems "health care" is mostly all about special interest groups and profits.

I know single-payer is by far the best we can hope for. But it is still the same drug-based medicine. It is all about injecting more toxins into an already toxic body. Not everyone wants to be treated that way. Be nice to have more alternatives.

(With a whole shitload of taxpayer money, of course.)

Then he trusts CIA torturers to not torture in the future.

Now he trusts the health care industry to slow their increases (whatever the ^$%& that means).

What next? Give nukes to North Korea so they can police themselves? This theme is starting to get a little old.

Universal health care like Norway now! They are going to allow so many to keep dying! People appear to mean nothing, only money! They think "We The People" are stupid. Will they get away with it? Probably, they have been for many years, while Europeans have health care we get robbed!

They are just another insurance company. They have no portfolio other than that.

to 2 trillion dollar ripoff of American consumers.

no good

I hope everyone who is pissed about this is making calls or sending letters or e-mails at *least* daily.

Hopefully several times a day.

We DEMAND single-payer.

There's an easy way to get the money. QUIT FUNDING THE FUCKING WARS!

Source: AP





Obama has meeting today to discuss health care
AP

49 mins ago

WASHINGTON –...............

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 Sunday. They spoke on the condition of anonymity in order to sketch the offer before full details are revealed at a White House event scheduled for Monday.


...........

Insurers, for example, want to avoid the creation of a government health plan that would directly compete with them to enroll middle-class workers and their families. Drug makers worry that in the future, new medications might have to pass a cost-benefit test before they can win approval. And hospitals and doctors are concerned the government could dictate what they get paid to care for any patient, not only the elderly and the poor.

Obama has courted industry and provider groups, inviting their representatives to the White House. There's a sense among some of the groups that now may be the best time to act before public opinion, fueled by anger over costs, turns against them.

It's unclear whether the proposed savings will prove decisive in pushing a health care overhaul through Congress. There's no detail on how the savings pledge would be enforced. And, critically, the promised savings in private health care costs would accrue to society as a whole, not just the federal government. That's a crucial distinction because specific federal savings are needed to help pay for the cost of expanding coverage...........

Read more: Obama has meeting today to discuss health care

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From what I have read, The WH and Congress will accept the crumbs --and ask for more.


Single payer is still not on the table.

because that is the very LAST thing they're talking about.



edited for spelling

of health care delivery.

"And hospitals and doctors are concerned the government could dictate what they get paid to care for any patient, not only the elderly and the poor."

It may be obvious to some but I'm sure there is a sizable portion of the population buying into the P.R. by the insurance industry here.

and that SHOULD be the way it is. No one should go into medicine for wealth.

need to stop and meditate on the way people think about Insurance Salespeople. Wanna be that? Feel free. It is one hell of a role to volunteer for when public opinion holds your fate.

do they work on commission?

transparent attempts to avoid being held accountable for the high cost of health care.

It strikes me that the very things these groups are afraid of would be in the best interest of the country as a whole.

not healthcare, not what's best for America. Profit.

always swayed by....money in their pockets. I can only think of a few representatives that are not.

http://www.whitehouse.gov/CONTACT/

Comments: 202-456-1111
Switchboard: 202-456-1414
FAX: 202-456-2461

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5633564&mesg_id=5633564

thanks.

We really need to make our voices heard... not only here on DU, but most importantly there in DC.

Time for a single payer plan NOW. Shit or get off the pot.

Any other industry would be happy to have the government subsidize their product.
Guaranteed income and profits should look pretty good in times like these.

Their worries about regulation are foolish. The US has never regulated any industry in a way that seriously reduced its profitability, usually quite the opposite.

They forget about the profits to be made from providing health care to those who currently cannot afford it, but would receive it under government subsidy.

Our current system is closing down hospitals all over the country. No health care is being provided by a closed-down hospital, nor are any doctors or nurses being employed there.
The hospitals are not being closed down because we have all suddenly become so healthy that the hospitals are no longer needed. It seems that our system "rations" health care too.

Source: Congressional Quarterly

May 10, 2009 – 9:44 p.m.
‘Game-Changing’ Health Plan to be Presented
By Alex Wayne, CQ Staff

Major representatives of the health care industry will present a plan to President Obama on Monday to reduce the growth of health costs for the next 10 years, which — if effective — could save the nation $2 trillion or more, White House officials estimate.

Two senior administration officials said the plan is to be put before Obama at a White House meeting by five trade associations representing health insurers, hospitals, drug companies, doctors and medical device makers. The proposal was brokered, the officials said, by Service Employees International Union, a large labor union closely allied with Obama, and its top health policy official, Dennis Rivera.

The White House believes the proposal could grease the rails for one of Obama’s top priorities: a health care overhaul that would promise insurance coverage for nearly every American and reduce health costs. However, it is not clear how or if the proposal will help lawmakers drafting overhaul legislation.

White House officials, giddy over the development, organized an unusual Mother’s Day conference call with reporters to describe the proposal ahead of Monday’s formal announcement. They spoke on condition of anonymity for reasons that were not explained.

Read more: http://www.cqpolitics.com/wmspage.cfm?docID=news-000003114310

Can the insurance companies, drug makers, and makers of medical devices be trusted? And for that matter, can the hospitals be trusted? Sorry to sound so skeptical, but all of these entities are used to making mega millions and likely won't give that up without a fight.

... to protect the rest of what they take. Don't be sorry to be skeptical, be skeptical.

We've almost got these GREEDY bastards by the short hairs now, we need to put on the pressure to TIP IT ALL OVER!!!

Sorry, but this will only make it WORSE.

If they have the Insurance Companies and Hospitals involved with NOBODY from the "government provided" sector, then it's DEAD ON ARRIVAL...

allows us to pick it apart.

SEIU is a good union and they have been working long and hard for real reform. Almost all their local people favor single payer, but were fighting to make sure a public pool (ala the Baucus multi payer plan) remained in the final bill. They see it as the back door to single payer.

So I'm willing to look and see what they got.

As we've seen with the financial crisis, the administration is working with the same people who got us into the mess in order to get us out of it. It won't work very well.

I'm sure the executives and shareholders at the insurance companies will do very well.

This is what I've feared all along, Congress will pass some piece of crap that they call "reform" and they think we're so stupid we'll believe them. Not that what we want or think matters. Not only can we not match the bribes the insurance industry shovels into their campaign chests, we can't provide them with lucrative lobbying jobs with the crooks leave Congress.

We need a complete change - taxpayer funded, government paid health care for everyone.

We already pay more per capita than any other country, so it's not as if we can't afford it.

Sorry - but this is just rearranging the deck chairs on the Titanic...

they need to CUT THE HEALT INSURERS OUT OF IT ENTIRELY AND SCRAPE ALL PRIVATE HEALTH "INSURANCE".

We want Health CARE, paid for by our TAXES, WITHOUT Insurance Company involvement AT ALL!!!

Expand Medicare to cover EVERYONE.

If people want ADDITIONAL "insurance" for luxuries such as VIAGARA or BOOBS or non-medical FACE LIFTS, THEY CAN PAY FOR IT THEMSELVES...!!!

Everyone of their organizers I know favor single payer.

what we see as positive and reject the parts we see as negative.

I will be interested to see if it includes a public pool and if it requires people to purchase private health insurance coverage.

Bare naked attempt to derail real single payer health reform. This is a good indicator of how scared they really are and almost proof positive that single payer would be ideal for most of us just not good for health care insurance companies.

I'm extremely angry at Obama's corporate bullshit. After providing hundreds of billions for corporation welfare, don't tell me you can't afford single payer. Failure will destroy Obama's credibility and stifle the hopes of countless supporters.

Force everyone to purchase private insurance..

It's a win-win for the insurors, a lose-lose for the rest of us..

What's not to like for the politicians?

what are they going to do? Lock you up in the hospital? Are they going to have automobile/pedestrian stops to check your insurance papers?

That's the way it works in MA..

Either purchase insurance or lose the money anyway and don't have insurance.

Think they will let me SIE.

If you are in zero tax bracket then you probably get assistance, they could take a cut of that..

Otherwise why would AARP be involved.

They have the gigabucks and we all know about the golden rule.

This breakthrough is the same type of ploy that the oil companies use when nearing national elections. The price of gasoline experiences a drastic reduction. Obama is using a ploy to distract away from a single payer system. He's already sold out and has stated that the private for profit system should be retained because the American people are ACCUSTOMED to it. Someone needs to tell him we are HELD Hostage to that system. If Obama fails to provide a public single payer plan, he can kiss my 2012 vote adios. I'll vote 3rd party for Howard Dean and his Health Care Party.

towards a more efficient and humane system. Why should we believe that what they're doing now is anything more than trying to derail actual reform? I guess the SEIU's involvement is somewhat encouraging, but still...

give up their health care and do without like so many others. We do not need the insurance companies, but politicians believe "they" do. Can anyone retire? Hell no! Cost of health care is way too much. Our politicians have great health care for life! We have nothing! We are being robbed!

You pay your premiums, at least 30% of which goes to "overhead" which includes, besides the obscene paychecks of the CEO's (over a billion a year for one guy,) hundreds of millions of dollars in "campaign contributions." The payoffs to the politicians amount to a small "operating expense" to this perpetual-bribe-paying machine called private insurance.

and by they I mean the health insurers, hospitals, drug companies, doctors and medical device makers - than can you imagine how much they have been taking us to the cleaners for now. This attempt by them is so they can protect their profits - which must be huge if they are willing - out of the bottom of their hearts to sacrifice this $2 trillion on this deal.

The insurance companies put forward some bullshit plan, the politicians pass it and get to pat each other on the backs, everyone shuts up ( they hope ) and then they forget about it, and we get the shaft pushed a few inches deeper (ouch! There's something in my stomach.)

That game-changing,

Representatives of the union with lowest paid members in the country are brokering a deal with the wealthiest and most powerful people in the world for the BENEFIT of the general public.

This is just too rich. You can't build irony like this but you can, apparently, BUY it.

Place your bets: Maids & Waiters VS people they work for

Is Hillary smirking or crying?

... credit card companies promising to keep rates low or banks promising not to foreclose too roughly on people.

Did I miss any?