Health Care Industry Announces Plan to Reduce Spending Growth

Major stakeholders in the health care and insurance industry have announced a plan to reduce health care spending by $2 trillion over 10 years and save the average family $2,500 a year. The proposal was incorporated in a letter to President Obama signed by representatives of the Advanced Medical Technology Association, American Medical Association, America's Health Insurance Plans, the Pharmaceutical Research and Manufacturers of America, the American Hospital Association and the Service Employees International Union.  The proposal made broad promises to simplify health care administration, deliver health care more efficiently and to reduce hospitalizations.

 In response President Obama was quoted as saying the proposal was a “watershed event” adding that “any health care legislation that the Democratic-controlled Congress sends him must reduce health care costs, give Americans a choice of doctors and medical coverage, and provide affordable care for everyone.”  Several commentators observed that the proposal was an effort to build political goodwill in the industry’s fight against a public plan.

 

 Senate Finance Committee Continues Budget Hearings

 The Senate Finance & Financial Institutions Committee has been hearing testimony from various state departments, boards and commissions the past few weeks concerning the House-passed version of the budget and is scheduled to start hearing public testimony this week and next week with the introduction of a substitute bill during the week of May 25th.  A committee and Senate floor vote is likely the week of June 1st.  At that point, a joint House and Senate Conference Committee will meet to work out differences in the House and Senate versions of the bill with the goal of having the budget enacted into law by July 1st.

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