President Obama Spotlights Health Care Reform

President Barack Obama held a primetime news conference focused primarily on health care reform. He reiterated his objective that the final solution must lower costs, promote choice and provide coverage for all. He stressed the urgency of reform as skyrocketing health care costs will continue to cripple our national deficit and burden individuals and employers with increasing premiums and out-of-pocket expenses.

While Congress continues to debate health care reform, the President indicated several areas where consensus is emerging and used this opportunity to answer the question many Americans are asking, “What’s in it for me?”

For those with insurance, the President asserted that:

• Reform will provide more security and stability – those who lose their jobs, move or change jobs will not lose access to coverage
• Government will not be part of health care decisions – individuals who are happy with their insurance will have the option to keep it
• Insurance plans will not drop coverage for individuals who are sick
• There will be limits on out-of-pocket expenses
• There will be coverage for preventive care and a focus on wellness
  

For those without insurance, he said that:

• Individuals and small employers will be able to obtain competitive, quality, affordable coverage through a Health Insurance Exchange, which will include a public plan option
• Health coverage will not be denied due to pre-existing conditions
  

President Obama stressed that acceptable health care reform must be paid for and must not add to the national deficit. He believes that two-thirds of the cost can be paid for by eliminating waste in the Medicare system. It is coming up with the remaining one-third that has been the subject of much debate. The President’s own recommendation for financing reform, limiting the itemized deductions for the wealthiest Americans, has not been included in any of the proposals. The President indicated he is not opposed to the other financing mechanisms suggested by Congress, including the early proposals of the Senate Finance Committee (although no draft bill has been issued) and the House proposal to apply a tax on wealthy individuals (those with joint income of $1 million). The President was very clear that the financial burden for health care reform must not be placed “on the backs of middle income families.” He indicated he will oppose any bill that is primarily funded through middle-class tax increases.

The President expressed his determination to have a health care reform bill passed and signed this year. Notably he focused more on having Congress develop the “right bill” to address the health care issue, and was less concerned about his own August deadline for a vote by Congress. Clearly this August timetable will not be met in the Senate. The day following the President’s press conference, Majority Leader Harry Reid (D-NV) stated the reform package will not be voted on until the fall. The President commented the delay is acceptable so long as Congress continues to work on this issue.

As indicated in previous reform updates, there are many committees currently working through their respective proposals. Once out of committee, the House and Senate will each need to vote on a bill. Then the respective bills will be re-negotiated, merged together and will require one more vote by Congress before a final reform bill makes its way to the President’s desk for signature.

I expect that while some aspects of the proposed health care reform bills are beginning to solidify, there will still be significant discussion and negotiation in the weeks ahead, most notably on the role of a public plan option and the sources of financing health care reform.