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Obama presents health plan, attacks 'scare tactics'
President Obama told Congress on Wednesday that while he is not the first president to take up the cause of health care reform, "I am determined to be the last."
In an address to a joint session of Congres Obama presented the most detailed description of his idea of health reform, and at the same time posted an outline of his plan on the White House Web site.
Obama has been criticized as the health care debate has devolved into rancorous town hall meetings and a partisan split over reform plans. Obama has also faced a split in his own party over how to best go about reforming the nation's health care system.
"Well the time for bickering is over. The time for games has passed. Now is the season for action," Obama said. "Now is when we must bring the best ideas of both parties together, and show the American people that we can still do what we were sent here to do. Now is the time to deliver on health care."
While much of the debate over health care has been over a government-backed public option, Obama said that's not the only problem plaguing the system.
"Those who do have insurance have never had less security and stability than they do today," he said of Americans who have lost their insurance when they have lost their jobs or have had their coverage dropped when they have suffered an illness.
Obama said that there is agreement on about 80 percent of what needs to be done, "but what we have also seen in these last months is the same partisan spectacle that only hardens the disdain many Americans have toward their own government."
"Instead of honest debate, we have seen scare tactics," he said.
Obama tweaked his pivotal health care address right up until the last, top aides said. He worked on the speech late into Tuesday night in the White House residence, bringing a new draft for his staff to work through Wednesday morning, they said. He even took a first draft of the speech to Camp David this weekend.
In his address Obama gave details "that every American needs to know" about his plan. Read Obama's health care plan (PDF)
If you already have health insurance through your job, Medicare, Medicaid, or the VA, nothing in his plan will require you to change the coverage you already have.
The plan would bar insurance companies from dropping or refusing coverage for a pre-existing condition.
"As soon as I sign this bill, it will be against the law for insurance companies to drop your coverage when you get sick or water it down when you need it most," Obama said.
And it will eliminate "some arbitrary cap" on the amount of coverage over a year or a lifetime.
"No one should go broke because they got sick," Obama said.
Speaking to those who don't already have coverage, Obama said his plan calls for a new "insurance exchange," to allow individuals in small business to shop for health insurance at competitive rates.
"If you lose your job or change your job, you will be able to get coverage," Obama said. "If you strike out on your own and start a small business, you will be able to get coverage."
Because Democrats enjoy majorities in both houses of Congress, Obama could get a plan passed if Democrats vote as a solid block. And while he has said he wants a bipartisan solution, White House officials have said the administration is prepared to push through a plan without Republican support.
Obama also attacked "bogus claims spread by those whose only agenda is to kill reform at any cost," addressing the so-called "death panels" and that reforms would insure illegal immigrants.
"And one more misunderstanding I want to clear up -- under our plan, no federal dollars will be used to fund abortions, and federal conscience laws will remain in place," he said.
The president said he would no longer stand for allowing gross misrepresentations to continue.
"I will not waste time with those who have made the calculation that it's better politics to kill this plan than improve it," Obama said. "I will not stand by while the special interests use the same old tactics to keep things exactly the way they are. If you misrepresent what's in the plan, we will call you out. And I will not accept the status quo as a solution. Not this time. Not now."
Obama said his plan isn't intended to put insurance companies out of business, but a not-for-profit option would "keep insurance companies honest" by providing competition.
The public option is a government-funded, government-run health care option, similar to Medicare. Under the plan, people would pay premiums 10 percent to 20 percent less than private insurance.
That leaves the door open for Congress to come up with another option, such as a co-op or a "trigger," in which a public option would kick in only if insurance companies fail to make reforms within a defined period.
Obama argued that a public plan wouldn't create unfair competition for insurers because it would rely on premiums it collects rather than public funding, but would save money by avoiding overhead like administrative costs and executive salaries.
And he said his plan won't add to the deficit because it includes a provision that requires the government to cut spending if health care savings the administration promises don't materializes.
Obama also addressed seniors who have expressed concerns about the quality of care they have enjoyed being eroded by health care reform, which he said has been "subjected to demagoguery and distortion."
"The only thing this plan would eliminate is the hundreds of billions of dollars in waste and fraud, as well as unwarranted subsidies in Medicare that go to insurance companies -- subsidies that do everything to pad their profits and nothing to improve your care," he said.
Savings from other areas would be used to fill the gap in coverage that had forced seniors to pay out-of-pocket for prescription drugs, commonly referred to as the "doughnut hole."
Obama also directed his administration to set up demonstration projects in several states to move toward medical malpractice reform, throwing a bone to Republicans who have long called for tort reform to bring down health care costs.
"I don't believe malpractice reform is a silver bullet, but I have talked to enough doctors to know that defensive medicine may be contributing to unnecessary costs," he said.
In the Republican response, Rep. Charles Boustany, a lawmaker from Louisiana and a cardiothoracic surgeon, agreed that a lot of work is needed to lower the cost of health care for Americans, but argued the bill Democrats proposed in July will further bog down the system, without offering much help.
"I read the bill Democrats passed through committee in July. It creates 53 new government bureaucracies, adds hundreds of billions to our national debt, and raises taxes on job-creators by $600 billion," Boustany said. "And, it cuts Medicare by $500 billion, while doing virtually nothing to make the program better for our seniors."
A senior administration official said that while the president would use the speech to reach out to Republicans in hopes of a last-minute bipartisan compromise, he planned to get tough with the other side by challenging them to step up and meet him halfway instead of letting things continue as they are.
"The defenders of the status quo are bankrupting America," the administration official said of Republicans.
The address was Obama's second speech to the full Congress since he took office in January. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid formally invited Obama to make the address, as required.
Several officials said that scheduling the high-profile speech also prodded Senate Finance Committee Chairman Max Baucus, D-Montana, to edge closer to securing a deal with the "Gang of Six" senators on his panel. Baucus to unveil health care bill next week
The senior administration official noted that even luminaries in the Republican party are acknowledging that there is a "health care crisis," citing former Alaska Gov. Sarah Palin's opinion piece in the Wall Street Journal on Wednesday. Palin gets tough on health care proposals
That same senior administration official said both Democratic and Republican lawmakers now believe "something has to get done" because doing nothing "would be a political failure."
The speech, analysts said, will probably be one of the most important to date.
"Wednesday night's health care speech may be one of the toughest he has faced," CNN contributor David Gergen said.
Obama has issued broad reform ideas, but has left most of the specific legislative details to leaders in Congress, who have faced sometimes contentious negotiations.Video
A recent CNN/Opinion Research Corp. poll showed Americans are evenly split over whether to support or oppose Obama's health care plan.
Six in 10 younger Americans support the plan; six in 10 senior citizens oppose it.
Source: CNN
In an address to a joint session of Congres Obama presented the most detailed description of his idea of health reform, and at the same time posted an outline of his plan on the White House Web site.
Obama has been criticized as the health care debate has devolved into rancorous town hall meetings and a partisan split over reform plans. Obama has also faced a split in his own party over how to best go about reforming the nation's health care system.
"Well the time for bickering is over. The time for games has passed. Now is the season for action," Obama said. "Now is when we must bring the best ideas of both parties together, and show the American people that we can still do what we were sent here to do. Now is the time to deliver on health care."
While much of the debate over health care has been over a government-backed public option, Obama said that's not the only problem plaguing the system.
"Those who do have insurance have never had less security and stability than they do today," he said of Americans who have lost their insurance when they have lost their jobs or have had their coverage dropped when they have suffered an illness.
Obama said that there is agreement on about 80 percent of what needs to be done, "but what we have also seen in these last months is the same partisan spectacle that only hardens the disdain many Americans have toward their own government."
"Instead of honest debate, we have seen scare tactics," he said.
Obama tweaked his pivotal health care address right up until the last, top aides said. He worked on the speech late into Tuesday night in the White House residence, bringing a new draft for his staff to work through Wednesday morning, they said. He even took a first draft of the speech to Camp David this weekend.
In his address Obama gave details "that every American needs to know" about his plan. Read Obama's health care plan (PDF)
If you already have health insurance through your job, Medicare, Medicaid, or the VA, nothing in his plan will require you to change the coverage you already have.
The plan would bar insurance companies from dropping or refusing coverage for a pre-existing condition.
"As soon as I sign this bill, it will be against the law for insurance companies to drop your coverage when you get sick or water it down when you need it most," Obama said.
And it will eliminate "some arbitrary cap" on the amount of coverage over a year or a lifetime.
"No one should go broke because they got sick," Obama said.
Speaking to those who don't already have coverage, Obama said his plan calls for a new "insurance exchange," to allow individuals in small business to shop for health insurance at competitive rates.
"If you lose your job or change your job, you will be able to get coverage," Obama said. "If you strike out on your own and start a small business, you will be able to get coverage."
Because Democrats enjoy majorities in both houses of Congress, Obama could get a plan passed if Democrats vote as a solid block. And while he has said he wants a bipartisan solution, White House officials have said the administration is prepared to push through a plan without Republican support.
Obama also attacked "bogus claims spread by those whose only agenda is to kill reform at any cost," addressing the so-called "death panels" and that reforms would insure illegal immigrants.
"And one more misunderstanding I want to clear up -- under our plan, no federal dollars will be used to fund abortions, and federal conscience laws will remain in place," he said.
The president said he would no longer stand for allowing gross misrepresentations to continue.
"I will not waste time with those who have made the calculation that it's better politics to kill this plan than improve it," Obama said. "I will not stand by while the special interests use the same old tactics to keep things exactly the way they are. If you misrepresent what's in the plan, we will call you out. And I will not accept the status quo as a solution. Not this time. Not now."
Obama said his plan isn't intended to put insurance companies out of business, but a not-for-profit option would "keep insurance companies honest" by providing competition.
The public option is a government-funded, government-run health care option, similar to Medicare. Under the plan, people would pay premiums 10 percent to 20 percent less than private insurance.
That leaves the door open for Congress to come up with another option, such as a co-op or a "trigger," in which a public option would kick in only if insurance companies fail to make reforms within a defined period.
Obama argued that a public plan wouldn't create unfair competition for insurers because it would rely on premiums it collects rather than public funding, but would save money by avoiding overhead like administrative costs and executive salaries.
And he said his plan won't add to the deficit because it includes a provision that requires the government to cut spending if health care savings the administration promises don't materializes.
Obama also addressed seniors who have expressed concerns about the quality of care they have enjoyed being eroded by health care reform, which he said has been "subjected to demagoguery and distortion."
"The only thing this plan would eliminate is the hundreds of billions of dollars in waste and fraud, as well as unwarranted subsidies in Medicare that go to insurance companies -- subsidies that do everything to pad their profits and nothing to improve your care," he said.
Savings from other areas would be used to fill the gap in coverage that had forced seniors to pay out-of-pocket for prescription drugs, commonly referred to as the "doughnut hole."
Obama also directed his administration to set up demonstration projects in several states to move toward medical malpractice reform, throwing a bone to Republicans who have long called for tort reform to bring down health care costs.
"I don't believe malpractice reform is a silver bullet, but I have talked to enough doctors to know that defensive medicine may be contributing to unnecessary costs," he said.
In the Republican response, Rep. Charles Boustany, a lawmaker from Louisiana and a cardiothoracic surgeon, agreed that a lot of work is needed to lower the cost of health care for Americans, but argued the bill Democrats proposed in July will further bog down the system, without offering much help.
"I read the bill Democrats passed through committee in July. It creates 53 new government bureaucracies, adds hundreds of billions to our national debt, and raises taxes on job-creators by $600 billion," Boustany said. "And, it cuts Medicare by $500 billion, while doing virtually nothing to make the program better for our seniors."
A senior administration official said that while the president would use the speech to reach out to Republicans in hopes of a last-minute bipartisan compromise, he planned to get tough with the other side by challenging them to step up and meet him halfway instead of letting things continue as they are.
"The defenders of the status quo are bankrupting America," the administration official said of Republicans.
The address was Obama's second speech to the full Congress since he took office in January. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid formally invited Obama to make the address, as required.
Several officials said that scheduling the high-profile speech also prodded Senate Finance Committee Chairman Max Baucus, D-Montana, to edge closer to securing a deal with the "Gang of Six" senators on his panel. Baucus to unveil health care bill next week
The senior administration official noted that even luminaries in the Republican party are acknowledging that there is a "health care crisis," citing former Alaska Gov. Sarah Palin's opinion piece in the Wall Street Journal on Wednesday. Palin gets tough on health care proposals
That same senior administration official said both Democratic and Republican lawmakers now believe "something has to get done" because doing nothing "would be a political failure."
The speech, analysts said, will probably be one of the most important to date.
"Wednesday night's health care speech may be one of the toughest he has faced," CNN contributor David Gergen said.
Obama has issued broad reform ideas, but has left most of the specific legislative details to leaders in Congress, who have faced sometimes contentious negotiations.Video
A recent CNN/Opinion Research Corp. poll showed Americans are evenly split over whether to support or oppose Obama's health care plan.
Six in 10 younger Americans support the plan; six in 10 senior citizens oppose it.
Source: CNN