Health insurer lobby releases plan to reduce U.S. health care costs by $145 billion

Officials from America's Health Insurance Plans have proposed a plan they estimate could reduce U.S. health care spending by $145 billion by 2015, The Politico reports. The group plans to present its findings to congressional committee chairs and ranking members and to hold a policy briefing.

The group's proposals for reducing costs include:

• Creating a system for comparing the cost and effectiveness of treatments;
• Adopting electronic health records, e-visits with physicians and other tools;
• Revamping the medical malpractice system;
• Creating incentives for value-based health care; and
• Improving disease management and prevention programs.

In addition, AHIP officials have been gathering "more comprehensive data" to help strengthen the organization's proposal for a "public-private partnership model," The Politico reports. According to the data, health care cost increases are at their lowest rate in 10 years. The trend is a result of systems that insurers implemented in the 1990s, industry officials say.

The Senate Finance Committee on Tuesday is scheduled to hold a hearing addressing rising health care costs and quality of care. Later in June, Committee Chair Max Baucus (D-Mont.) and ranking member Chuck Grassley (R-Iowa) will hold a bipartisan congressional summit to discuss health care options for next year.

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AHIP President Karen Ignagni said, "Now that members of Congress are beginning to turn their attention to comprehensive discussions, how to look at the three areas of cost, access and quality, we are going to be stepping up our activities even more." She added, "We don't want to contribute only by way of reacting to other proposals. What we've done is gone on an 18-month, in-depth effort to provide ideas ourselves."

AHIP spokesperson Michael Tuffin said, "It's important for us to lay a marker down because, within the health care issue that voters are really concerned about, cost is their No.1 concern." He added, "They see cost and access as one and the same, and sometimes in Washington we separate those things" (Frates, The Politico, 6/2).