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Business group says health legislation could cut medical inflation

WASHINGTON — The Democratic health care bills in Congress — if done right — have the potential to tame runaway medical inflation, a leading business group said today in a report immediately hailed by President Barack Obama.

The Business Roundtable, which represents big company CEOs, said some of the changes being considered by Congress have the potential to reduce future health care cost increases, bringing medical inflation closer in line with overall economic growth. But the group also warned other provisions in the bills could raise costs.

If current trends prevail, per-employee health care costs will triple by 2019, the report estimated. If the changes Congress is considering are carried out correctly, it could yield a savings of $3,000 per worker. A more aggressive approach — with hospitals and doctors paid for quality, not quantity — could save $5,000 per employee.

Obama greeted the analysis as welcome validation at a time when other business groups like the U.S. Chamber of Commerce and the National Federation of Independent Business have soured on the Democrats' health care bills and are mobilizing the opposition.

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