Obama focusing on health cost variations

WASHINGTON, June 9 (UPI) -- Big differences in per-patient Medicare spending levels between U.S. states is receiving close scrutiny from President Barack Obama, reformers say.

Sen. Ron Wyden, D-Ore., told Tuesday's New York Times Obama, as part of his wide-ranging efforts to bring down medical costs and extend coverage to the uninsured, is focusing his team of healthcare reformers on why some states, such as Florida, Massachusetts, New Jersey and New York, spend so much more on healthcare without producing better results.

The situation has long angered officials of lower-cost states such as Iowa, Minnesota, Montana, North Dakota, Oregon and Washington, who say they are being short-changed in Medicare spending because their healthcare systems are more efficient, the newspaper said.

Analysts told the Times to address the spending gaps, congressional negotiators are mulling shifting tens of billions of dollars in Medicare money away from providers in high-cost areas and using it to help cover the uninsured or treat patients in lower-cost states.

Unnamed White House aides told the newspaper Obama has been intrigued by variations in healthcare spending since discussing it with White House budget adviser Peter Orszag before his election.