Health Care Compact Would Save $3 Trillion

Alexandria, VA – Today, the Health Care Compact Alliance released its analysis of the financial impact of the Health Care Compact on the national deficit. The Alliance found that, if implemented in all 50 states, the compact would cut the deficit by nearly $3 trillion by 2021.
“The Health Care Compact is more than just health care reform,” said Leo Linbeck III, Vice Chairman of the Health Care Compact Alliance. “It is governance reform that will make a difference in not only the way Americans choose their health care system but will save our federal government trillions. In the coming weeks, members of the Congressional super-committee will continue meeting to determine ways to reduce our nation’s deficit and reigning in health care spending must be their priority. The Health Care Compact offers real reform while reducing the deficit.”
The Health Care Compact has been introduced in 13 states since February 2011 and has already been adopted in four states. In addition, in more than 30 states, citizen groups and state legislators are actively considering the Health Care Compact.
Under the Health Care Compact, each state receives annual funding from the federal government for health care.  The funding is mandatory spending for the federal government and is not subject to annual appropriations.  Funding for each state is calculated from a baseline of 2010 health care spending, adjusted for changes in population and inflation.
For the Health Care Compact to become law, it must be passed by both houses of a general assembly or legislature, signed by the governor, and approved by Congress.  Health care policy in a member state is not prescribed in the compact.  Policy is determined by each individual state after the compact is ratified.
The Health Care Compact is an initiative of the Health Care Compact Alliance, a nonpartisan organization dedicated to providing Americans greater influence over decisions that govern their health care.
Interstate compacts have been used throughout U.S. history to allow states to coordinate in important policy areas. Authority for compacts was established in the Constitution (Article I, Section 10), and more than 200 such agreements are currently in effect. They are voluntary agreements between states that, when consented to by congress, have the force of federal law.
For more information, visit

About the Health Care Compact Alliance

The Health Care Compact Alliance is a nonpartisan [501 (c)4] organization providing tools that enable citizens to exert greater control over their government. The Health Care Compact was developed to offer Americans more influence over decisions that govern health care. For more information, please visit