Obama lauds industry offer to contain health costs

WASHINGTON — President Barack Obama has praised health industry groups for coming forward with an offer to reduce the growth of spending by $2 trillion a year to overhaul the system.

Obama appeared at the White House with an array of industry figures, including union representatives, and called it the occasion “historic.”

Industry figures pledged that they would voluntarily slow their rate increases over the next 10 years.

Obama said the step the industry took Monday must be carried out as part of “a broader effort” to change the health care system, keep costs under control and provide health insurance for the some 46 million Americans who do not now have it.

He said, “I will not rest until the dream of health care reform is achieved in the United States of America.”

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

WASHINGTON (AP) — Health industry groups are promising to reduce the growth of spending by $2 trillion over 10 years by improving coordination, focusing on efficiency and embracing better technology and regulatory reform.

Hospitals, insurance companies, drug makers and doctors have told President Barack Obama in a letter that they’ll voluntarily slow their rate increases in coming years. It’s a move that government economists say would create breathing room to help provide health insurance to an estimated 50 million Americans who now do not have it.

The industry letter released Monday said “these and other reforms will make our health care system stronger and more sustainable.”

It’s a change from the time in the early 1990s when then-President Bill Clinton took on health care reform and industry leaders fought back.