Tuesday 10th November 2009

by RazRez Contributor

Health care legislation has shifted over to the Senate, and the euphoria of House passing its version of the health care legislation is over.  The White House is encountering revolt from some Democrats who are left wondering what happened to the President’s promise to slow the upward trajectory in health care spending.

President Obama has trumpeted cost containment as one of the major themes of his health reform agenda, and in May vowed to reduce the growth of health care spending by 1.5 percent, or $2 trillion, over the next ten years.

Unfortunately for the President, many are skeptical that the bill passed by the House, and the Senate’s version would be able to realize the promised savings.  Instead, many believe we are entering into a trap – one that promises more spending rather than savings.

Both the House and the Senate are promising cost-saving measures, to the tune of $440 billion in Medicare savings with the House bill and $420 billion with the Senate’s version.  The pragmatists argue that it is one thing to extract savings out of an inefficient system, but quite another to alter the way that the health system does business today.

The jury is still out on whether the White House will be able to influence legislation that would institute health care delivery reforms and its associated costs savings.  Regrettably, deals the White House made with the hospital industry could prove to be a hindrance to the quest to significantly lower healthcare delivery costs.

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