Where Will $2T In Health Care Savings Go?

by glenajess | May 13, 2009 at 01:33 am
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OBAMA BROKEN CAMPAIGN PROMISES AND BREACH OF THE PUBLIC TRUST

OBAMA BROKEN CAMPAIGN PROMISES AND BREACH OF THE PUBLIC TRUST

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The Obama administration proudly announced on Monday that the health care industry has made a significant step toward contributing to health care reform by offering to reduce the growth rate of health care costs over 10 years by 1.5 percent a year, or by a total of $2 trillion.

CBSNews.com's Hotsheet asked the administration how curbing the growth of costs--not stopping it--contributes to actual reform. The administration replied that cutting costs is a goal in and of itself. Two trillion dollars is nothing to scoff at, but it helps to keep things in perspective.

Given the rate at which health care costs have skyrocketed for Americans over the past decade, these savings could be a first step toward expanding coverage, some health care advocates say.

What also has yet to be explained is specifically how the federal government could take advantage of the savings from this plan. The government shoulders a growing portion of the nation's health care expenses, and its burden could grow tremendously under President Obama. One must also keep in mind there are no mechanisms to ensure the industry actually follows through on its offer.

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First Flagged at 4:11 AM, May 13, 2009 by SamirJ
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