Uniting for Health Care Reform: A New Path Forward for America

Strategic Insights -

As President Barack Obama laid out during a significant meeting on May 11, 2009, the spiraling cost of health care in the United States has become a catastrophic burden for families, businesses, and the government, threatening the financial stability of the country. The President emphasized that health care costs have risen at a rate four times faster than wages over the last decade, with half of all personal bankruptcies stemming from medical expenses. He highlighted that what is a growing crisis for the American people has also become an untenable burden for American businesses, hindering their ability to innovate and grow.

Key Takeaways:

  • The spiraling cost of health care in the United States threatens the financial stability of families, businesses, and government, with health care costs rising at a rate four times faster than wages over the last decade.
  • Half of all personal bankruptcies stem from medical expenses, and too many Americans are skipping check-ups or going without necessary prescriptions due to high costs.
  • Rising health care costs have put the federal budget on a disastrous path, largely due to what's spent on Medicare and Medicaid, which are expected to continue climbing in the years ahead.
  • The President has committed to comprehensive health care reform aimed at bringing down costs and providing quality, affordable health care to all Americans, with a focus on saving families an average of $2,500 in health care costs in the coming years.
  • Groups representing various sectors of the health care industry, including unions, insurance companies, and pharmaceutical companies, have made a commitment to cut the rate of growth of national health care spending by 1.5 percentage points each year over the next 10 years, an amount equal to over $2 trillion.
  • The steps outlined by these groups will help support a broader effort to reform the entire health care system, including reducing waste, preventing avoidable hospital readmissions, and incur other cost-saving measures.

Statistics:

  • Over the last decade, health care costs have risen at a rate four times faster than wages.
  • Half of all personal bankruptcies stem from medical expenses.
  • Health care costs are expected to continue climbing in the years ahead, with the federal budget on a disastrous path largely due to what's spent on Medicare and Medicaid.
  • Groups representing various sectors of the health care industry have committed to cut the rate of growth of national health care spending by 1.5 percentage points each year over the next 10 years, an amount equal to over $2 trillion.
  • The average family could save $2,500 in health care costs in the coming years under comprehensive health care reform.
  • It is estimated that nearly 46 million Americans do not have health insurance.

Sources:

  • Political Transcript Wire, PRESIDENT BARACK OBAMA DELIVERS REMARKS ON HEALTH CARE COSTS, May 11, 2009.