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In a health care summit in Washington earlier this year, President Obama challenged the medical industry to cut costs and come up with ideas for improvement. In a meeting on Monday, several groups presented their response.

The President met with health reform stakeholders including representatives from insurance providers, hospitals, physicians, medical device companies, pharmaceutical companies, labor unions and administration officials.

In the President's remarks after the meeting, he referred to the gathering as "extraordinarily productive." The focus on cost, the President said, was because the country is "...on an unsustainable course that threatens the financial stability of families, businesses and government itself." The President went on to note that Americans have had significant rise in premiums and out-of-pocket health care costs, at a rate far more than their pay. Problems resulting from these costs include personal bankruptcy and forgoing medical care and prescriptions that are needed.

President Obama said that the groups with whom he met were voluntarily cooperating to commit to cut the growth of health care spending in the U.S. by 1.5 percentage points each year, equivalent to over $2 trillion in ten years' time. The President further remarked that these efforts by the groups were compatible with the current movement to achieve health care reform and savings for American families, including standard qualities of care, more efficiency, and in preventive care. Cutting costs also includes stopping and preventing waste, fraud, hospital re-admissions and other steps, the President explained, adding that a "broad coalition" of government and industry would "have a seat at the table" in order to plan and achieve real reform.

The President also recounted the efforts already made during the year, including extending health care to millions of children of working families without coverage, a COBRA subsidy for affordable health care for several million Americans who have lost their jobs, and the health information technology initiatives to computerize medical records and protect privacy but also save time, rework, and reduce medical errors.

Finally, the President noted that soon Congress would be working with the difficult issues and questions in health care reformation. The President said he was committed to a "transparent process" with input from all perspectives. However, the President emphasized, whatever health care reform plan designed must uphold three principles: that the rising cost of health care be brought down; that Americans have the freedom to keep the physicians and plans they have or choose new ones if desired, that all Americans must have health care that is both affordable and high in quality.

"It's reform that is an imperative for America's economic future, and reform that is a pillar of the new foundation we seek to build for our economy;" The President said in part of his closing remarks. "Reform that we can, must, and will achieve by the end of this year."