Health Care Blog

A Health Reform Town Hall in Ohio

Posted by Katherine Brandon on July 23, 2009 at 6:31 PM EDT

The President traveled to Ohio today, where he held a town hall focused on health insurance reform:

Whenever I hear people say that it's happening too soon, I think that's a little odd. We've been talking about health care reform since the days of Harry Truman. (Laughter.) How could it be too soon? I don't think it's too soon for the families who've seen their premiums rise faster than wages year after year. It's not too soon for the businesses forced to drop coverage or shed workers because of mounting health care expenses. It's not too soon for taxpayers asked to close widening deficits that stem from rising health care costs – costs that threaten to leave our children with a mountain of debt.

Reform may be coming too soon for some in Washington, but it's not soon enough for the American people. (Applause.) We can get this done. We don't shirk from a challenge. (Applause.)

Before the town hall, the President visited the renowned Cleveland Clinic with Governor Ted Strickland to talk to doctors and nurses about their thoughts on reform. He then toured the operating room in the clinic’s Heart and Vascular Institute, which is ranked #1 in the nation. The President has said that it is essential we identify the best practices in health care, so that we can replicate them across the country to get better quality at lower costs.

The President then arrived at Shaker Heights High School, where he began his remarks at the town hall by addressing the economy. He reiterated that we must build a new stable foundation for the 21st century. Health insurance reform is an essential pillar in this new foundation because our current system is unsustainable. There are approximately 46 million Americans without insurance, but the President explained that his plan for reform will benefit all Americans, including those with insurance:

If you have health insurance, the reform we're proposing will give you more security. You just heard Rick's story. Reform will keep the government out of your health care decisions, giving you the option to keep your coverage if you're happy with it. So don't let folks say that somehow we're going to be forcing government-run health care. It's just not true. And it will keep the insurance companies out of your health care decisions, too – (applause) – by stopping insurers from cherry-picking who they cover, and holding insurers to a higher standard for what they cover. (Applause.)

You won't have to worry about receiving a surprise bill in the mail, because we'll limit the amount your insurance company can force you to pay out of your own pocket. (Applause.)

You won't have to worry about preexisting conditions, because – (applause) – never again will anyone in America be denied coverage because of a previous illness or injury. (Applause.)

You won't have to worry about losing coverage if you lose or leave your job, because every American who needs insurance will have access to affordable plans through a health insurance exchange – a marketplace where insurance companies will compete to cover you, not to deny you coverage.(Applause.)

And if you run a small business and you're looking to provide insurance for your employees, you'll be able to choose a plan through this exchange, as well. I've heard from small business owners across America trying to do the right thing, but year after year premiums rise higher and choices grow more limited. And that's certainly true right here in Ohio.

(President Barack Obama tries his hand operating a state-of-the-art robotic surgical system while touring the Cleveland Clinic in Ohio, Thursday, July 23, 2009. Official White House Photo by Pete Souza)

The President is dedicated to restoring a sense of fiscal responsibility in Washington, which is why his plan will be deficit-neutral. He explained that by simply cutting wasteful spending, we can pay for 2/3 of health reform right there. But it is equally important that we slow the growth of health care costs. The President noted the Cleveland Clinic as an example of a medical center with some of the lowest costs and highest quality care, and explained why it is so imperative to lower costs:

So the fact is, lowering costs is essential for families and businesses here in Ohio and all across the country. Let's take the Ohio example – over the past few years premiums have risen nearly nine times faster than wages. That's something that Rick and his wife understand very well. As we meet today, we're seeing double-digit rate increases on insurance premiums all over America. There are reports of insurers raising rates by 28 percent in California; seeking a 23 percent increase in Connecticut; proposing as much as a 56 percent increase in Michigan. If we don't act, these premium hikes will just be a preview of coming attractions. And that's a future you can't afford. That is a future that America can't afford.

We spend one of every six of our dollars on health care in America, and that's on track to double in the next three decades. The biggest driving force behind our federal deficit is the skyrocketing cost of Medicare and Medicaid. Small businesses struggle to cover workers while competing with large businesses. Large businesses struggle to cover workers while competing in the global economy. And we'll never know the full cost of the dreams put on hold, the entrepreneurial ideas that are allowed to languish, the small businesses never founded – because of the fear of being without insurance, or having to pay for a policy on your own.

So, Ohio, that's why we seek reform. And in pursuit of this reform we've forged a consensus that has never before been reached in the history of this country. Senators and representatives in five committees are working on legislation; three have already produced a bill. Health care providers have agreed to do their part to reduce the rate of growth in health care spending. Hospitals have agreed to bring down costs. The drug companies have agreed to make prescription drugs more affordable for seniors. The American Nurses Association, the American Medical Association, representing millions of nurses and doctors who know our health care system best, they've announced their support for reform. (Applause.)

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The President's Press Conference - Full Video

Posted by Jesse Lee on July 22, 2009 at 9:49 PM EDT

In a primetime press conference focused on health insurance reform, the President explained what's in it for you and your family - watch the full video:
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[UPDATE: Director DeParle is working hard to build consensus for reform and has been forced to postpone the chat once again due to intense and productive meetings on the Hill. We will be sure to schedule more opportunities to hear and address your questions and concerns soon.] Have health care questions of your own? The White House will be giving you opportunities to ask them and give your feedback over the coming days, starting today at 3:00pm ET with White House Health Reform Director Nancy-Ann DeParle. She will be taking your questions from WhiteHouse.gov/live and Facebook on how reform will affect insurance in America, including how we can cut costs and assure that every American has access to affordable, quality care regardless of pre-existing conditions.

This is an issue that impacts us all – so help keep your friends and family up to date:

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Peter Orszag on Building a New Foundation for Growth

Posted by Katherine Brandon on July 22, 2009 at 2:20 PM EDT

White House Office of Management and Budget Director Peter Orszag addressed the Council on Foreign Relations today, outlining the Administration’s response to the economic crisis, and how the Administration is working to build a new foundation for economic growth and broadly shared prosperity.

Orszag reminded the audience that when President Obama was elected in November, the economy was in a freefall. The administration had to work to restore confidence. This is why the administration has been looking to the future, and laying the groundwork for a stable foundation, so that we will be prepared for future shocks. The Capital Assistance Program, the Homeowner Affordability and Stability Plan, and the Recovery Act were all part of this approach. From his prepared remarks:

In designing the Recovery Act, we also recognized that the economic situation we inherited was so severe that we needed to assure producers and consumers that aggregate demand would be boosted not just for a few months, but for a sustained period. That is why we envisioned a Recovery Act that would ramp up rapidly in 2009, have its peak impact in 2010, and lay the groundwork for further growth thereafter.

Now, the Recovery Act has encountered some criticism in recent days – from all sides. And a piece of legislation of this size and import should be scrutinized. In conducting this debate, however, we need to understand what the Act was designed to do.

Remember that the Recovery Act was designed to take effect over a two-year period with about 70 percent of all funds going out in the first 18 months.

As a result, and since job growth typically lags behind economic activity, both Administration and independent forecasts have predicted that only a very small part of the total job creation expected from the Recovery Act would take place by the end of the second quarter. Therefore evaluating how well the Recovery Act is working based on recent movement in employment numbers is misleading.

Implementation of the Recovery Act is on schedule, and the $220 billion in relief has already had a direct impact. Orszag explained how the Recovery Act is helping our economy rebound:

Goldman Sachs, for one, projects that the Recovery Act will add about 3 percentage points on an annualized basis to GDP in the second quarter and have a similar effect in the third quarter. To be sure, other analysts may reach slightly different quantitative conclusions than Goldman Sachs – and in any case we have a way to go before anyone should become satisfied with our economic performance. Nonetheless, it is becoming increasingly clear that the economy is no longer on the brink of disaster.

The equity markets have rebounded, and credit markets have thawed. The TED spread—an indicator of stress in private credit markets—was typically below 50 basis points before the crisis. In October of last year, it peaked at over five times that, at 460 basis points. It has now settled back under 50 basis points. And the consensus among private forecasters is that the economy will return to positive growth this year.

But even as progress is made, this year will continue to be difficult for American workers, as the unemployment rate typically lags behind other parts of the economy. He argued that recovery is not just about rescue, but about rebuilding our economy so that we can have long-term, sustainable growth -- and that health care reform is an essential element to building this new foundation:

The evidence is clear that the biggest threat to our fiscal future is rising health care costs. If health care costs grow at the same rate over the next four decades as they did over the previous four, Medicare and Medicaid spending will go from about 5 percent of GDP to about 20 percent by 2050. That was about the size of the entire federal government last year.

Our fiscal future is so dominated by healthcare that if we can slow the rate of cost growth by just 15 basis points a year, the savings for Medicare and Medicaid would equal the impact from eliminating Social Security’s entire 75-year shortfall.

The fiscal importance of health care reform is indisputable. Yet in the current debate, there’s been a lot of controversy surrounding whether the bills that are emerging from Congress accomplish our fiscal goals or not. So let me be clear: the President will not sign a health care reform bill unless it is deficit neutral with hard, scoreable savings over the next decade and on a stable trajectory as the decade ends.

In addition to reforming health care in a deficit-neutral way, the President has also insisted that we take additional steps to transforming our system to one that delivers better care, rather than more care.

Because if we fail to do more to move towards a high-value, low-cost healthcare system, we will be on an unsustainable fiscal path no matter what else we do. As it stands now, the health care system does the opposite of what it should -- creating incentives for doctors and hospitals to provide more care, not the best care.

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Reforming Health Insurance, Reforming Washington

Posted by Katherine Brandon on July 21, 2009 at 4:41 PM EDT

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The President spoke in the Rose Garden today on health insurance reform, but began his remarks by praising the Senate vote on F-22 funding. The President is committed to changing the way we do business in Washington, whether that means finding common ground on health care or eliminating waste and inefficiency in our defense projects. The President explained that today’s vote in the Senate against $1.75 billion in funds for additional F-22 fighter jets, which both parties agree are unnecessary, will free up money for more critical matters:

But I reject the notion that we have to waste billions of taxpayer dollars on outdated and unnecessary defense projects to keep this nation secure. That's why I’ve taken steps to greatly reduce no-bid defense contracts. That's why I've signed overwhelmingly bipartisan legislation to limit cost overruns on weapons systems before they spiral out of control. And that's why I'm grateful that the Senate just voted against an additional $1.75 billion to buy F-22 fighter jets that military experts and members of both parties say we do not need.

At a time when we’re fighting two wars and facing a serious deficit, this would have been an inexcusable waste of money. Every dollar of waste in our defense budget is a dollar we can’t spend to support our troops, or prepare for future threats, or protect the American people. Our budget is a zero-sum game, and if more money goes to F-22s, it is our troops and citizens who lose.

The President is committed to fiscal discipline, and health care costs are the biggest drivers of our deficit. That is why the status quo is unacceptable, and we must reform health care now to bring down costs, while expanding coverage and providing choice. As both the House and the Senate work to craft their bills, we are closer than ever before to comprehensive health care reform and the consensus continues to build. The President outlined the common ground that has been reached on substantial issues:

We've agreed that our health reform bill will extend coverage and include unprecedented insurance protections for the American people. Under each of these bills, you won't be denied coverage if you've got a preexisting medical condition. You won't lose your health care if you change jobs, if you lose your job, or if you start a business. And you won't lose your insurance if you get sick.

We've agreed that our health reform bill will promote choice. America -- Americans will be able to compare the price and quality of different plans, and pick the plan that they want. If you like your current plan, you will be able to keep it. Let me repeat that: If you like your plan, you'll be able to keep it. And each bill provides for a public option that will keep insurance companies honest, ensuring the competition necessary to make coverage affordable.

We've agreed that our health reform bill will emphasize prevention and wellness. By investing in programs that help Americans live healthier lives, we will save money, prevent illness, and increase the competitiveness of our country. We've agreed that our health reform bill will protect American families from financial catastrophe if they get sick. That's why each of these bills has out-of-pocket limits that will help ensure that families don't go bankrupt because of illness. And we have agreed that our health reform bill will include dramatic measures to cut costs while improving quality.

Each of these bills improves oversight while cracking down on waste. Each will help reduce unwarranted giveaways to insurance companies in Medicare. And each of these bills will provide incentives so that patients get the best care, not just the most expensive care.

The consensus that we've forged is not limited to Congress. Indeed, we've forged a level of consensus on health care that has never been reached in the history of this country. Health care providers have agreed to do their part to reduce the rate of growth in health care spending. The pharmaceutical industry has agreed to spending reductions that will make prescription drugs more affordable for seniors. Hospitals have agreed to bring down costs. The American Nurses Association and the American Medical Association, who represent millions of nurses and doctors who know our health care system best, have announced their support for reform.

(President Barack Obama makes a statement on health care reform in the Rose Garden of the White House, Tuesday, July 21, 2009. Official White House Photo by Chuck Kennedy)

Even as consensus builds on these critical issues, the President knows the road ahead will not be easy. Those who are committed to the status quo will fight to delay and defeat reform, as they’ve done before. But the President is committed to bringing change to Washington, and he knows that this isn’t about political games, it is about the American people:

So I understand that some will try to delay action until the special interests can kill it, while others will simply focus on scoring political points. We've done that before. And we can choose to follow that playbook again, and then we'll never get over the goal line, and we'll face an even greater crisis in the years to come. That's one path we can travel.

Or, we can come together and insist that this time it will be different. We can choose action over inaction. We can choose progress over the politics of the moment. We can build on the extraordinary common ground that's been forged, and we can do the hard work needed to finally pass the health insurance reform that the American people deserve.

And I can guarantee you that when we do pass this bill, history won't record the demands for endless delay or endless debates in the news cycle –- it will record the hard work done by the members of Congress to pass the bill, and the fact that the people who sent us here to Washington insisted upon change. That's the work that we've come here to do, and I look forward to working with Congress in the days ahead to getting the job done.

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"Not This Time"

Posted by Jesse Lee on July 20, 2009 at 2:30 PM EDT

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This afternoon the President continued his conversation on health reform with a roundtable at the Children's National Medical Center, a conversation that has taken him to every region of the country and encompassed every imaginable perspective on health care reform.

It has been a conversation that has brought more people and more stakeholders into the fold supporting strong reform than ever before, and taken us further down that road than ever before. And so it is no surprise, perhaps, that those who feel they would profit financially or politically have come out swinging furiously to try to kill reform.

Surrounded by those who heroically do everything they can to help the young and the ill, today the President made clear that whereas those special interests and their voices in Congress have stopped change in the past, they would not win this time:

And over the past decade, premiums have doubled in America; out-of-pocket costs have shot up by a third; deductibles have continued to climb. And yet, even as America's families have been battered by spiraling health care costs, health insurance companies and their executives have reaped windfall profits from a broken system.

Now, we've talked this problem to death, year after year. But unless we act -- and act now -- none of this will change. Just a quick statistic I heard about this hospital: Just a few years ago, there were approximately 50,000 people coming into the emergency room. Now they've got 85,000. There's been almost a doubling of emergency room care in a relatively short span of time, which is putting enormous strains on the system as a whole. That's the status quo, and it's only going to get worse.

If we do nothing, then families will spend more and more of their income for less and less care. The number of people who lose their insurance because they've lost or changed jobs will continue to grow. More children will be denied coverage on account of asthma or a heart condition. Jobs will be lost, take-home pay will be lower, businesses will shutter, and we will continue to waste hundreds of billions of dollars on insurance company boondoggles and inefficiencies that add to our financial burdens without making us any healthier.

So the need for reform is urgent and it is indisputable. No one denies that we're on an unsustainable path. We all know there are more efficient ways of doing it. We just -- I spoke to the chief information officer here at the hospital and he talked about some wonderful ways in which we could potentially gather up electronic medical records and information for every child not just that comes to this hospital but in the entire region, and how much money could be saved and how the health of these kids could be improved. But it requires an investment.

Now, there are some in this town who are content to perpetuate the status quo, are in fact fighting reform on behalf of powerful special interests. There are others who recognize the problem, but believe -- or perhaps, hope -- that we can put off the hard work of insurance reform for another day, another year, another decade.

Just the other day, one Republican senator said -- and I'm quoting him now -- "If we're able to stop Obama on this, it will be his Waterloo. It will break him." Think about that. This isn't about me. This isn't about politics. This is about a health care system that is breaking America's families, breaking America's businesses, and breaking America's economy.

And we can't afford the politics of delay and defeat when it comes to health care. Not this time. Not now. There are too many lives and livelihoods at stake. There are too many families who will be crushed if insurance premiums continue to rise three times as fast as wages. There are too many businesses that will be forced to shed workers, scale back benefits, or drop coverage unless we get spiraling health care costs under control.

(President Barack Obama roundtable with health care providers at Children's Hospital, July 20, 2009. Official White House Photograph by Pete Souza)

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Weekly Address: Health Care Reform Cannot Wait

Posted by Jesse Lee on July 17, 2009 at 11:59 PM EDT

The President calls on Congress to seize this opportunity – one that may not come again for decades – and finally pass health care reform: "It’s about every family unable to keep up with soaring out of pocket costs and premiums rising three times faster than wages. Every worker afraid of losing health insurance if they lose their job, or change jobs. Everyone who’s worried that they may not be able to get insurance or change insurance if someone in their family has a pre-existing condition..."

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