[Guest post by DRJ]
Flanked by leaders of the AMA, AHA, SIEU, pharmaceutical and other groups in the State Dining Room, Barack Obama announced today a “watershed event”: An agreement by industry groups to come to the government table to reduce health care costs by 1-1/2% a year over the next 10 years for an estimated savings of 2 trillion dollars.
Noting his goal is universal medical coverage, Obama said 46 million people in America are uninsured and claimed that medical costs are responsible for half of all personal bankruptcies.
Obama did not address the mechanisms that will deliver this reduction in health care costs, other than eliminating fraud and waste and enhanced preventive care. Perhaps it will involve lower wages and profits or it could be rationed services. It seems that will be up to Congress.