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Real Health Reform

The Commonwealth Fund and the Center for American Progress released a report yesterday, expanding on the CBO’s conservative and limited estimated savings realized in health reform, something I have cited as a limitation in the past. The lead economists (David Cutler, Karen Davis, and Kristof Stremikis) rely on business literature, the inefficiencies of the health care system, and provider experiences to devise their methodology. They also take into account systems such as Geisinger Health System and Intermountain Healthcare to estimate higher savings from modernization and payment/delivery reform.

In all, the report finds:

-The House bill would reduce the deficit by up to $459 billion over ten years ($300 billion more than CBO estimates)
-The Senate bill would reduce the federal deficit up to $409 billion over 10 years ($280 billion more than CBO estimates)
-Read the full report here.

The freshman Democratic Senators (led by Mark Warner (D-Va.) and apparently too green to fall into the ‘politicizing’ of the reform debate), have also rallied behind the major delivery reform proposals and have importantly highlighted the major and most relevant provisions here.