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AHIP Statement on the Status of Health Care Reform
Date:2/22/2010

nny goes to health plan profits. It is time to ask: what are we doing about the other 99 cents?

“We need to ask this question because new health spending projections released by CMS recently found that health care’s share of the economy grew 1.1 percentage points in 2009 – the largest one-year increase in health care’s share of the GDP since the federal government began keeping track in 1960. The report notes that the ‘two primary drivers of growth…are medical prices and utilization.’

The Council of Economic Advisors last year modeled out the impact of reducing the rate of growth in health care costs by 1.5% per year for a decade. That is the kind of goal around which the nation should rally. But we won’t even achieve a small fraction of that goal by exclusively looking at health plan administrative costs and profits.

“Examples of unsustainable cost increases abound:

 

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