The American Hospital Association, the Federation of American Hospitals and the Catholic Health Association have agreed to contribute $155 billion over the course of 10 years to finance healthcare coverage for the nation's uninsured, according to a report in the Washington Post.
Approximately $100 billion of the savings will come from reduced Medicare and Medicaid reimbursements, and an additional $40 billion in savings will come from gradually reduced charity care benefits, according to the report. Both reductions are not expected to begin for "several years," after a significant number of currently uninsured individuals become enrolled in health plans.
Hospital leaders agreed to the reductions with the understanding that if final healthcare legislation includes a public-sponsored health plan, that plan will not pay Medicare or Medicaid rates.
Read the Washington Post's report on the hospital industry's agreement to cut $155 billion from government healthcare spending.