Biden Unveils Hospital Deal to Cut $155 Billion

Joe Biden unveiled his hospital deal to cut $155 billion over the next 10 years. This looks like some of that health care reform that we have heard so much about from the current administration. Biden called the hospital deal, which was reached after weeks of negotiations, a sign that President Obama's promised health-care reform is on track.

According to Biden, the new hospital deal will insure more people under a new and restructured plan, by cutting hospital costs.

The hospital deal will provide relief for hospitals' financial stress. a Washington Post article, Biden was quoted as saying "Our hospitals are cracking under the weight of providing quality health care for Americans who lack insurance," and that "the status quo is simply unacceptable."

Biden's hospital deal will primarily lower costs by charging less for health services to elderly patients as well as poor ones. The $155 billion will come from hospital contributions to Medicare and Medicaid over the next ten years.

The American Hospital Association, represented by its chief executive Richard Umbdenstock, is committed to "coverage for all, paid for by all." Umbdenstock said that the hospitals "are ready to do our part. But so must all the other stakeholders." True, the hospital deal will rely on everyone keeping their financial promises, including doctors, the government, officials, insurer, and employers.

Biden's hospital deal will hopefully match up with Obama's support of a public insurance plan that will compete with private insurance companies, driving down costs in the end.

About the hospital deal, which will result from delivery system reforms and trimming reimbursement payment inflation according to reuters.com, Biden said "Folks, reform is coming. It is on track. It is coming. We have tried for decades and decades to fix the broken system and we have never in my entire career in public life been this close."