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Page last updated at 18:40 GMT, Wednesday, 8 July 2009 19:40 UK

US hospitals agree savings deal

US Vice-President Joe Biden announces that US hospitals have agreed to forgo $155bn in government payments over the next 10 years
Mr Biden said that healthcare reforn was "coming"

US hospitals have announced they will give up $155bn (£96bn) in government payments over the next 10 years.

The move could help pay for the Obama administration's plan to extend healthcare coverage to the 47 million Americans who are currently uninsured.

A number of different healthcare plans are being debated in Congress, and there is much disagreement about what form reform should take.

President Obama has said he wants to get a plan approved this year.

Much of the debate over healthcare reform has focused on where the money will come from to pay for the planned expansion of health coverage.

Some of the plans being proposed by Democrats in Congress carry price tags of over $1tn.

Wednesday's announcement by three of the largest US hospital groups provides a clue as to where some of the money will be found.

'On track'

The hospitals are proposing to accept $100bn less from the government's Medicare and Medicaid schemes, which provide healthcare for elderly and poor Americans.

They are also willing to forgo $40bn in government subsidies that they currently receive in return for giving emergency treatment to the uninsured.

In theory, as the healthcare reforms allow more and more uninsured Americans to obtain coverage, the need for these subsidies will decrease.

Announcing the agreement, Vice-President Joe Biden made it clear that the administration is still focused on delivering universal healthcare.

"Folks, reform is coming," he said. "It's on track. It's coming."

Two weeks ago, US pharmaceutical companies announced that they were prepared to sacrifice $80bn over the next 10 years to help pay for the planned expansion.

But the precise details of healthcare reform are still being hammered out in Congress.

Most Democrats want to establish a publicly-run healthcare scheme, that could compete with private insurers and help bring down costs.

But most Republicans and some conservative Democrats have expressed reservations about the "public option".



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