Stark plan would cut health costs the most, study says

February 5, 2009

An analysis of 11 leading U.S. government health-care reform proposals, large and small, concludes that a package submitted in 2007 by Rep. Pete Stark would increase federal spending the most but provide the largest overall cost reduction.

An analysis of 11 leading U.S. government health-care reform proposals, large and small, concludes that a package submitted in 2007 by Representative Pete Stark (D-California)-an expansion of a system similar to Medicare-would increase federal spending the most but provide the largest overall cost reduction, according to a study released by the Commonwealth Fund.

Stark's AmeriCare Health Care Act of 2007 would increase federal spending on health care by $188.5 billion, but reduce the country's total health spending by $58.1 billion and eliminate all uninsured people, according to the study. It points out that some of the savings from Stark's plan would come from slashing physician and hospital reimbursements to Medicare levels, as well as from a reduction of insurance administrative costs.