Financial Dispatch: $2 trillion in health care savings?

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/US/05/10/stamp.prices/art.post.office.gi.jpg caption="The Postal Service said the price increases were needed because of rising production costs."]

Andrew Torgan
CNN Financial News Producer

President Barack Obama says he has secured the commitment of several industry groups to do their part to rein in the growth in health care costs.

This pledge from the private sector could reduce the growth in health care spending by 1.5 percentage points a year, for a savings of $2 trillion over 10 years.

Overall, it could amount to a 20% reduction in the growth of health care spending. Six trade associations representing unions, hospitals, insurers and the drug industry have signed on to the commitment.

However, the savings depend in part on Congress passing health care reform this year.

GM may shuffle board

Another shakeup is reportedly in the works at General Motors.

The Wall Street Journal says the automaker has hired an executive search firm to help it find replacements for at least half of its 12 directors.

Since the government could end up with a controlling stake in a bankrupt or restructured GM, it’s expected to name some of the directors, as will the United Auto Workers Union. This move comes almost 2 months after the government ousted former GM CEO Rick Wagoner.

Separately, current GM CEO Fritz Henderson said today the automaker intends to keep its headquarters in Detroit, even though its U.S. operations are in far worse shape than some of its growing overseas units.

Henderson also repeated his earlier statements that he believes a bankruptcy filing is now “probable” as the company tries to reach agreements with creditors, the UAW and its dealership base to cut costs.

The company has been given until the end of the month by the Treasury Department to reach those agreements or file for bankruptcy.

Senate targets credit card rates and fees

Key negotiators in the Senate today reached a deal on legislation targeting credit card rates and fees.

The development could spur the bill to a Senate vote as early as this week, although the battle is far from over when it comes to reconciling the Senate’s bill with an earlier version that passed the House. President Obama said Saturday he'd like to have the bill on his desk by Memorial Day.

According to copies of the legislation distributed by lobbyists, the Senate's new bill is tougher than a similar bill passed in the House, and would, among other things, prevent those under 21 from getting a credit card unless they can prove they have an income stream to pay off debt or have their parent's signature. It would also ban gift card issuers from charging "dormancy fees" on cards redeemed too late.

USPS strives to survive

Finally, if the mail must go through, it's going to cost a little more. The United States Postal Service hiked the price of stamps today, as well as other delivery services.

But as the cash-strapped and debt-ridden agency fights for financial survival, it's considering much more drastic changes than adding 2-cents to the cost of a 42-cent stamp.

In testimony before the Postal Service's Board of Governors in January, Postmaster General John Potter said it "could become necessary to temporarily reduce mail delivery to only five days a week," from the current six-day service, which would effectively end Saturday delivery. The Postal Service estimates savings of $3.5 billion annually.

That’s significant, considering that in its most recent fiscal year ending Sept. 30, 2008, the Postal Service reported a loss of $2.8 billion. And in the six months since then, losses accelerated to $2.3 billion.