A number of news organizations, including the Washington Post, are reporting that White House officials, Senate Finance Committee Chairman Max Baucus and 3 national hospital associations may have reached an agreement to reduce health care spending by $155 billion over 10 years.
According to the Washington Post article, most of the savings (possibly $100 billion) may come from lower than expected Medicare and Medicaid payments to hospitals. Reportedly, the $155 billion in savings would be applied to pay for the expansion of coverage to the uninsured. It has also been reported that a formal announcement may be made by Vice President Biden on Wednesday, July 8.
Although not addressing this apparent development, President Obama released a statement on health care reform today reaffirming the Administration's commitment to a public option and stating:
"I am pleased by the progress we're making on health care reform and still believe, as I've said before, that one of the best ways to bring down costs, provide more choices, and assure quality is a public option that will force the insurance companies to compete and keep them honest. I look forward to a final product that achieves these very important goals."
UPDATE: Vice President Biden's press conference formally announcing the hospitals' commitment to health care reform provides some details on the $155 billion in savings and can be viewed in its entirety here. However, the highlights of the press conference can be viewed below:
