The Bigger Picture of Cost Savings in Health Reform

New Report takes a comprehensive look at the impact of health reform legislation has on reducing health care costs and premiums.

The confusion surrounding the definition of costs for the proposed health reform legislation has clouded the debate, making it difficult for most Americans to wrap their head around how health reform will help them. The government’s official scorekeeper, the Congressional Budget Office, has primarily focused its analysis on the impact of health reform on federal spending. While CBO projections suggest that both bills will lower deficits and maintain or lower premium costs for most Americans, this message has been lost in the sound bites.

A recent report by the Commonwealth Fund and the Center for American Progress goes beyond the budgetary perspective and provides much needed clarity in this complex debate.  The study takes a more holistic approach, accounting for the effects the proposed legislation will have on the entire health care system including federal health spending, businesses, and American families.

The report finds the House and Senate bills will yield savings of at least $683 billion over ten years for national health care spending and achieve savings between 15-20 percent by 2019. The Commonwealth’s assessment also projects American families would see their premiums reduced by nearly $2,000 annually by 2019.