President Obama’s Council of Economic Advisers is out today with a new report about the benefits of curbing the growth of health care costs. Reducing growth inflation from 6 percent to 4.5 percent, the report says, could mean as much as $2,600 in more income for the typical family of four by 2020, and $10,000 by 2030. Such cost savings could also reduce the unemployment rate by a quarter point, or 500,000 jobs.
But as the Washington Post notes:
The report contains few details about how those ambitious goals would be achieved, however, and does not address any increased federal spending needed to implement health reform. And the White House economists acknowledge that shaving 1.5 percentage points off the rate of growth in health spending would be extraordinarily difficult — “probably near the upper bound of what is feasible.”
The full report is available here.
Meanwhile, the industry groups that promised last month to save $2 trillion in health care costs over the next decade, are back with a more detailed letter. I haven’t had a chance to read the whole thing yet (available here), but here’s how they vow to save money:
• Utilization of Care: $150 – $180 billion
• Chronic Care: $350 – $850 billion
• Administrative Simplification and Cost of Doing Business: $500 -$700 billion
In case you’re keeping score at home, that’s adds up to a range of $1 trillion to $1.7 trillion.