Health care costs to be lower?

11 May 2009

Paul Krugman sounds (for him these days) positively upbeat regarding the the news that the healthcare industry has volunteered to help the Obama administration in reducing the growth rate in health care costs:

And serious cost control would change everything, not just for health care, but for America’s fiscal future. As Mr. Orszag has emphasized, rising health care costs are the main reason long-run budget projections look so grim. Slow the rate at which those costs rise, and the future will look far brighter.
I still won’t count my health care chickens until they’re hatched. But this is some of the best policy news I’ve heard in a long time. 

And serious cost control would change everything, not just for health care, but for America’s fiscal future. As Mr. Orszag has emphasized, rising health care costs are the main reason long-run budget projections look so grim. Slow the rate at which those costs rise, and the future will look far brighter.

I still won’t count my health care chickens until they’re hatched. But this is some of the best policy news I’ve heard in a long time. 

One wonders whether this includes reigning in administrative costs.  I’m still not convinced that a single-payer system wouldn’t be better. There have to be economies of scale in providing health care administration.

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