Health Care Plan To Provide Affordable Health Insurance To 50 M Uninsured

Armen Hareyan's picture
White House and Health Insurance Reform
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Health care price increase slowdown will create room to make affordable health insurance available to 50 million people without health insurance coverage. According to media reports health care industry leaders will tell the president Obama today that they are going to make efforts to slow down price increase in health care to give the government a breathing room to make health insurance reform.

The benefit of this move by the health care industry is to free some serious amounts of money that will help the government to go one with the planned health care reform to make health insurance affordable for millions of people. This is especially important now as many people have lost their jobs and the COBRA option is not at all affordable for them and their families.

What is interesting is that when the President Clinton took office and introduced his health care reform, industry leaders fought back, but now the looks like have had a change of heart. As AP reports "now those industry leaders are trying to help Obama find a solution to the problem of uninsured Americans, offering $2 trillion in spending reductions over 10 years."

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Last year the number of people without health insurance coverage was estimated to be between 42 to 47 million level. Now apparently it has reached to 50 million level. This is not surprising in this economy and when considering the fact that millions of people have lost their jobs.

It seems that there is a catch here in regard to why the health care industry leaders are willing to help president Obama when they refused to president Clinton. According to AP the industry leaders want to help the government with it's health care and health insurance reform "in the hope they can steer Congress away from legislation that would restrict their profitability in future years."

"Six major groups plan to deliver a letter to Obama and pledge to cut the growth rate for health care by 1.5 percentage points each year, senior administration officials said Sunday. They spoke on the condition of anonymity in order to sketch the offer before full details are revealed at a White House event scheduled for Monday."

At this point the details of the plan are not known. We don't know how the savings pledge will be enforced. Probably the details will come out sometimes this afternoon. How the federal government may save from this plan is not really known either. Specific federal savings are needed to help pay for the cost of expanding coverage. Signatories to the deal include America's Health Insurance Plans, the American Medical Association, the American Hospital Association, the Service Employees International Union and the Pharmaceutical Research and Manufacturers of America.

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