Health care groups pledging to create $2 trillion in savings

WASHINGTON – Volunteering to "do our part" to tackle runaway health costs, leading groups in the health-care industry have offered to squeeze $2 trillion in savings from projected rate increases over the next decade, White House officials said Sunday.

Hospitals, insurance companies, drug makers and doctors planned to tell President Barack Obama at a meeting today that they'll voluntarily slow their rate increases in coming years in a move that government economists say would create breathing room to help provide health insurance to an estimated 50 million Americans who now go without it.

With this move, Obama picks up key private-sector allies that fought former President Bill Clinton's effort to overhaul health care.

Although the offer from the industry groups doesn't resolve thorny details of a new health-care system, it does offer the prospect of freeing a large chunk of money to help pay for coverage. And it puts the private-sector groups in a good position to influence the bill Congress is writing.

The groups aim to achieve the proposed savings by using new efficiencies to trim the rise in health-care costs by 1.5 percent a year, the officials said. That would carry huge implications for the national economy and the federal budget, both of which are significantly affected by health-care expenses.

"I don't think there can be a more significant step to help struggling families and the federal budget," a senior administration official said in a conference call with reporters. The official spoke on condition of anonymity because the offer remains tentative.

The White House projects that the savings after five years under the proposal would mean about $2,500 a year in lower health-care bills for a family of four, the official said. Within 10 years, the savings would "virtually eliminate" the nation's budget deficit.

WHO'S MAKING THE PLEDGE?
The trade groups making the pledge represent a broad spectrum of health-care interests:

•The American Medical Association

•The Pharmaceutical Research and Manufacturers of America, representing drug companies

•America's Health Insurance Plans, which represents insurers

•Service Employees International Union

•American Hospital Association

•Advanced Medical Technology Association, which represents device makers