Reform of health care up in air as economy sinks - USATODAY.com

Reform of health care up in air as economy sinks - USATODAY.com: "'SERIOUS THREAT' SEEN

Rising health care costs 'pose a serious threat' to the economy, but some of the more popular cost-control policies promoted by lawmakers will do little to help, warn government reports out Thursday.

No simple solutions exist, but unless changes are made, the USA will spend 25% of its total economy on health care by 2025, up from about 16% now, the Congressional Budget Office says in two reports that do not make policy recommendations.

In addition, the number of uninsured could jump 20% in 10 years, up from about 45 million in 2009 to 54 million, the CBO says.

Some plans promoted by President-elect Barack Obama and many other lawmakers such as wide adoption of electronic health records and better preventive care could improve health but would likely result in only modest savings or even increase the federal government's costs over 10 years, the CBO says.

In contrast, reducing payments to doctors, hospitals and other medical providers highly unpopular politically would save hundreds of billions of dollars over 10 years, the CBO says.

'By far, the biggest savings are cutting what we pay to people in the health care system. Everything else is really small,' says Robert Laszewski, a health policy consultant and former insurance industry executive.

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