WASHINGTON - A COALITION of US healthcare groups pledged on Monday to help President Barack Obama rein in the growth in costs and save about US$2 trillion (S$3 trillion) over the next decade, a step the administration hopes will build support to reform the system this year.

Mr Obama, who made healthcare reform a cornerstone of his agenda, hailed the announcement by groups representing doctors, hospitals, drug makers and insurers that they would push for legislative changes to make the system more efficient.

'We can't continue down the same dangerous road we've been traveling for so many years. The costs are out of control,' Mr Obama said at a White House appearance with the industry representatives. 'Reform is not a luxury that can be postponed but a necessity that cannot wait.'

Mr Obama said the cost savings would be achieved through steps such as streamlining paperwork and changing the way hospitals deliver and bill for services to patients.

'What they're doing is complementary to, and is going to be completely compatible with, a strong aggressive effort to move healthcare reform through here in Washington,' Mr Obama said.

'That's how we can finally make healthcare affordable.' Mr Obama aides said that with costs expected to rise dramatically as the US population ages, the slower growth rate would save US$2 trillion over 10 years.

In a report released on Monday the Center for American Progress Action Fund and the Democratic Leadership Council said health system modernisation could save the federal government nearly US$600 billion in health spending over the next decade, and US$9 trillion over the next 25 years.

Changes would include paying doctors for better quality of care rather than individual services performed, better chronic care management and better competition among insurers.

Revamping the healthcare system and expanding coverage for an estimated 46 million uninsured Americans is a top priority for Mr Obama, who wants the Democratic-led Congress to pass a measure by year's end.

Mr Obama's proposal would establish a new government health insurance plan to compete with private insurers. The administration says that would help cut costs by introducing competition and covering the uninsured. -- REUTERS