Tags: gary cohn | donald trump | jeff bezos | warren buffett

Gary Cohn: Trump Cut Health Costs Before Bezos, Buffett, Dimon Plan

By    |   Tuesday, 30 January 2018 12:20 PM

Gary Cohn, the former president and chief operating officer of Goldman Sachs who is President Donald Trump’s top economic adviser, said the administration has made efforts to cut healthcare costs for average Americans.

Cohn discussed White House policy after Amazon, J.P. Morgan and Berkshire Hathaway formed a partnership to cut healthcare costs for their hundreds of thousands of U.S. employees.

The new company will focus on technological solutions to provide simple and transparent healthcare solutions for workers. Healthcare stocks including CVS and Aetna sank on the news.

"Earlier last year, we created association health-care plans, which is the exact same thing that those three companies did," Cohn, director of the National Economic Council, said on business channel CNBC. "Smaller businesses could pool their employees together to get more purchasing power, so they could save money on health care."

Healthcare spending in the U.S. rose 4.3 percent to $3.3 trillion in 2016, according to the U.S. Centers for Medicare and Medicaid Services. That means healthcare makes up 18 percent of the nation’s yearly economic output.

The U.S. spent about $9,000 per person on healthcare in 2015, more than any other developed country, according to the Organization for Economic Co-operation and Development. The next highest countries were Switzerland at about $6,800, Germany at $5,100 and Sweden at $5,000.

But the U.S. had the lowest average life expectancy at 79.3 years among 30 countries studied by the World Health Organization. The U.S. also ranked poorly on measures including death rates from preventable diseases and number of hospital beds per person, the Los Angeles Times reported.

“The ballooning costs of health care act as a hungry tapeworm on the American economy,” Berkshire Chief Executive Warren Buffett said in prepared remarks. “Our group does not come to this problem with answers. But we also do not accept it as inevitable.”

The Trump administration this month proposed a sweeping rule change to make it easier for small businesses to band together and create health insurance plans that would be exempt from many of the consumer protections mandated by the Affordable Care Act, also known as Obamacare, the New York Times reported.

"We agree in that philosophy," Cohn said in reference to low health-care costs. "We think that individual workers should have to pay less for health care."

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Gary Cohn, the former president and chief operating officer of Goldman Sachs who is President Donald Trump's top economic adviser, said the administration has made efforts to cut healthcare costs for average Americans.
gary cohn, donald trump, jeff bezos, warren buffett
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2018-20-30
Tuesday, 30 January 2018 12:20 PM
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