THE WHITE HOUSE - The White House is announcing a deal with medical providers. It is an agreement that sets the stage for President Obama's plan to provide health care for all Americans.
Officials project savings of trillions of dollars over the next decade by slowing the cost of health care. But critics say it also would expand the role of government.
Click play for John Jessup's report, followed by comments from Dr. David Stevens of the Christian Medical Association.
Making good on a pledge to reform health care this year, President Obama and industry leaders announced an agreement.
Providers Offer To Cut $2 Trillion In Spending
Medical providers offered to cut $2 trillion in spending over the next ten years to help pay for the president's health care reform plan, something President Obama says is long overdue.
"Health care is one of the fastest growing expenses in the federal budget, and it's one we simply cannot sustain," Obama said.
The deal puts doctors, insurance providers, drug makers and other medical groups on the same page, pledging to cut their growth rate by one and a half percent to help provide health insurance to an estimated 46 million Americans who don't have it.
$2,500 In Savings For A Family of Four
And, according to the White House, would translate into an estimated savings of $2,500 a year in health care costs for a family of four.
But the deal also gives these powerful medical players leverage when it's time for Congress to write legislation to overhaul the health care system.
While many generally agree reform is needed, there's little consensus on how to get there.
New Government Health Insurance Plan
Obama's plan calls for building on the current private insurance system of shared responsibility between employers, government and individuals.
But the centerpiece would create a new government health insurance plan that would compete directly with private insurers to cover the uninsured, something the Senate already reportedly is considering.
Republicans oppose the idea, which is part of the president's larger domestic agenda. The GOP says it would undermine the market for private care an they are calling it fiscally irresponsible.
The administration won't announce all the savings strategies Monday, but they are leaning on Congress to get legislation to the floor this summer.