Tuesday, May 12, 2009

Why cost control is hard to achieve in the US health care system

NY times article on Obama's health care push over the last days:

News Analysis - Obama’s Push for Health Care Cuts Faces Daunting Odds - NYTimes.com

Welcome news that industry has voluntarily committed to health care cost control. But as this article points out - any cost control will hurt someone's bottom line - this paragraph tells almost all of the story :

"Insurers and health care providers are lobbying strenuously against cuts in their Medicare payments that would produce savings of the type they profess to want. Insurers are fighting Mr. Obama’s proposal to cut payments to their private Medicare Advantage plans by a total of $176 billion over 10 years. Doctors are pleading with Congress not to cut costs at their expense, in particular by allowing a 21 percent cut in their Medicare fees scheduled to occur in January. Pharmaceutical companies and makers of medical devices worry that new products may have to pass a cost-benefit test before being approved for coverage under Medicare."

Let's hope the current consensus building and the shared aspirations in Washington turns into a shared meaningful plan of action that truly controls health care costs.

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