Whitehouse to Obama: Find savings in healthcare delivery

Sen. Sheldon Whitehouse (D-R.I.) is urging President Obama to consider healthcare delivery system reforms as a way to curb costs and not cut benefits.

In a letter Wednesday, Whitehouse said a federal target for savings driven by delivery reform would empower advocates and eliminate the need for cutting Medicare and Medicaid to reduce the deficit. 

"With so many voices in Washington now calling for cuts to Medicare and Medicaid as part of a deal on the so-called 'fiscal cliff,' cost savings through delivery system reforms are key to preserving and strengthening these programs without hurting the middle class," Whitehouse wrote. 

The White House is struggling with GOP lawmakers to find a way to avoid the so-called fiscal cliff, a combination of tax increases and spending cuts set to take effect Jan. 1.

On Tuesday, House Minority Whip Steny Hoyer (D-Md.) said that Medicare benefits are "clearly on the table" in talks between Obama and Speaker John Boehner (R-Ohio).

"They've been on the table for some period of time. That does not mean that I'd be prepared to adopt them now, but they're clearly, I think, on the table," Hoyer said.

Whitehouse's letter proposes to shift the conversation. It cites experts who believe the healthcare system can stand to save between $700 billion and $1 trillion without compromising quality.

Whitehouse pointed to the $700 billion estimate, made by the Council of Economic Advisers.

"Since 40 percent of America’s healthcare spending is federal," he wrote, "we could save over $80 billion a year if we only achieved 30 percent of the potential.

"Over a 10-year budget period, that amounts to $800 billion in federal healthcare savings — all without taking away any benefits, while likely improving care."

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