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Word from the White House: Health CEOs Confirm Reform Lowers Costs

Summary: 
CEOs come out for reform, for the future of their businesses and the future of the American economy.

It's no secret that institutions of all stripes focus their communications on certain messages day to day. We thought it would all be a little more open and transparent if we went ahead and published what our focus will be for the day, along with any related articles, documents, or reports.

Supporting letter: CEO Work Group on Health Reform, 12/8/09 (pdf)

Supporting letter: David M. Cote, CEO, Honeywell, 12/7/09 (pdf)

Talking Points: Health CEOs Confirm Reform Lowers Costs

  • CEO's from several sectors of the health care industry – healthcare provider groups, hospitals, physician groups, insurers – have put out a letter praising health insurance reform legislation and saying that it will improve quality and lower costs. 
  • Like the economists who yesterday reported that reform will save a typical family $2,500, these health care executives write that the CBO underestimated the impacts of reforms aimed at promoting best practices and reducing costs.
  • Due to problems with structure and incentives, the current system "both inflates and obscures true costs," the CEOs write.  "Both pending bills counter this in several important ways."
  • In fact, the CEOs say, "proposed legislation underestimates the power of its provisions."  Savings and improved quality may "happen faster than policy makers believe."
  • Among the crucial reform measures the CEOs cite:
    • "Mechanisms for enabling systemic changes that allow our health care delivery system to provide more affordable, better integrated and higher quality health care."
    • "Provisions... that will allow doctors, hospitals and healthcare providers to collaborate in sharing costs, responsibility and savings in ways that our current regulations prohibit."
    • Measures that make it easier for physicians to coordinate care, which will  lower health costs and improve quality.
  • The current health reform effort, the CEOs conclude, "represents a once-in-a-generation opportunity to avert the stark and draconian consequences of inaction."