Information technology would push some healthcare reform proposals put forth Monday in what the White House called a "breakthrough" meeting between President Barack Obama and representatives of insurance companies, doctors, hospitals and pharmaceutical firms.
In a letter submitted Monday to Obama, several healthcare industry groups, including America’s Health Insurance Plans, the American Hospital Association and the American Medical Association, promised to reduce the rate of healthcare cost growth by $2 trillion over the next 10 years.
Among the proposals with IT underpinnings are administrative simplification, standardization, transparency, aligning quality and efficiency incentives among providers, evidence-based best practices and therapies and chronic disease management.
As Obama meets Tuesday with employer groups to discuss healthcare reform, it’s back to the homework table for the groups that met with him Monday. They are to report back on June 1 on how they plan to achieve their cost-cutting goals.
The $2 trillion would slow down the rate of healthcare cost growth by 1.5 percent over 10 years and, according to the administration, save families $2,500 a year.
Health and Human Services Secretary Kathleen Sebelius described Monday's meeting as "unprecedented." She responded to questions after the meeting on a conference call with reporters.
Sebelius said many of the groups at the table had opposed reform in the early 1990s.
"This is not just a photo-op, but really the beginning of a partnership that can transform the healthcare system," she said. "Today was really a breakthrough day."
In remarks at the start of the meeting, Obama noted:
- half of all bankruptcies stem from healthcare cost;
- the growing crisis for the American people is a bigger problem for businesses;
- and healthcare costs have put the federal budget on a disastrous path.
Sebelius emphasized that Obama expects healthcare reform legislation to pass this year. In addition to having the organizations at Monday's meeting Monday work on how to cut costs, the president wants their support on the legislative side.
"He made it very clear he wants them at the table to make reform a reality this year," Sebelius said. "It's unusual to have them at the table at this stage of the game."
Industry observers say the insurance companies are supporting reform to ensure themselves a seat at the table and avoid a public plan.
Sebelius noted 45 million Americans are without health insurance and millions more are under-insured.
"We have a whole spectrum of Americans, most of whom know the healthcare system does not work for them," she said.
Obama wants healthcare legislation to include:
- a reduction in cost;
- the freedom for people to choose their doctors; and
- quality healthcare insurance for everyone.
In addition, Sebelius said, "cherry picking by health plans cannot continue in the future."
AHIP President Karen Ignagni told the Senate Finance Committee last week that health insurers are prepared to stop charging women more for healthcare. The move follows an earlier concession by the insurance industry to stop charging more to insure members with pre-existing conditions.
"Our message is clear: The private sector will do its part to bend the healthcare cost curve," Ignagni said in a prepared statement on Monday. "We are initiating the reforms needed to make healthcare more affordable for families and employers and to put our healthcare system on a sustainable path."
Asked about the obstacles ahead, Sebelius said it's always easier to forge agreement from a distance. Once the details are discussed, she said, the tension will rise.
It's easy to be in favor of reform, she said, "as long as it looks like I want it to look."
In response to a question about that the stakeholders might want off the table in exchange for their support on reform, Sebelius said: "There was no quid pro quo. Everyone in the room... understands that what's in place right now is unaffordable, unsustainable and unacceptable."
