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Obama's Health Care Plan on Fast Track: Could Be Law by Christmas, Politico's Allen Says

Posted May 12, 2009 03:11pm EDT by Aaron Task in Healthcare Information, Newsmakers
President Obama made his push to reform the health care system and provide coverage for 42 million uninsured Americans this week. On Tuesday, the President outlined his plan to create a $630 billion "health reform reserve fund", and how he intends to pay for it - a combination of increased taxes, greater efficiency in the system and promises from the industry to cut costs.

The President was joined at the White House by representatives from six major health care industry trade groups, which collectively promised to cut the growth of healthcare spending by 1.5 percentage points a year for 10 years, generating $2 trillion in savings.

The very fact the industry groups were at the White House and willing to play ball with the President shows how much things have changed since the contentious "Hillary care" debate of the early 1990s, says Mike Allen, chief White House correspondent of Politico.com.

The other big change vs. the Clinton era effort is the Obama administration is trying to tinker with and augment the existing private health care system, rather than totally replace it with government-run universal health care.

"This is a one step at a time approach," says Allen. Because erstwhile opponents of health care reform, including some Republicans, are now supporting the effort, Allen expects the President will have legislation ready to be signed by Christmas.

Of course, there are obstacles that could trip up the President along the way, including:

  • The cost: To pay for half off the plan, the President this week added $59 billion in additional taxes, notably tightening of estate and gift tax rules, and limits on deductions for charitable donations.
  • The special interests: Doctors, insurers, health care providers and big pharma each have problems with various aspects of the plan, as The NYT reports. Plus, those six industry groups are going to want something in return for their initial cooperation, which by the way isn't binding or detailed at this point.
  • The loyal opposition: Allen notes with amazement the President doesn't need a single Republican vote to get legislation passed, but Obama faces some opposition from his own party. Some "Blue Dog" House Democrats are chaffing at how the legislation is being put together, and other Dems aren't happy with the plan to reduce charitable donations.

263 Comments

Yahoo! Finance User
Yahoo! Finance User - Tuesday May 12, 2009 03:12PM EDT

We are SCREWED!!!

- Tuesday May 12, 2009 03:18PM EDT

Pretty soon we will run out of toilet paper.

- Tuesday May 12, 2009 03:21PM EDT

Damn. Thought we were going to get through a whole day without hearing from the Dumber half of Dumb and Dumber.

Yahoo! Finance User
Yahoo! Finance User - Tuesday May 12, 2009 03:23PM EDT

All one needs to do is look at UK and Canada to see what a nightmare this will be. In UK a panel decides who gets what treatment, not your Dr. Treatment is rationed and based on age and avialability. While you are young and rarely use the system, you will be taxed heavily to subsidize it. But when you are old and need it, your age will work against you since rationed treatment will go to younger worker who contributes to the system via taxes. SEE CPRIGHTS.com

- Tuesday May 12, 2009 03:24PM EDT

American system is duplicitous. Those who work hard and try to pay, can't pay enough. For the rest it is cradle to grave welfare. Has to be reconciled someway.

- Tuesday May 12, 2009 03:25PM EDT

Amen!

- Tuesday May 12, 2009 03:26PM EDT

Legalize drugs and then tax the hell out of them. Then you can pay for healthcare for all Americans. Legal ones that is.

- Tuesday May 12, 2009 03:28PM EDT

This will be the straw that breaks the camel's back. The first time one of the other 260 million of us (especially Obama's union buddiis) who do have good health care gets told by a govt. bureaucrat that you can't see your own doctor anymore or you have to get on a waiting list, there will be political hell to pay. This is just step #1. There will be more govt. takeover, and our health care system will collapse under the weight of govt. Obama/Pelosi/Reid will suffer the political consequences and will be gone by 2012 when people realize who they actually have elected. So I guess there is some good news here.

- Tuesday May 12, 2009 03:29PM EDT

How much more taxes does this goverment wat to take away from the american people. Pretty some your pay check is going to say 0 for take home pay.

- Tuesday May 12, 2009 03:29PM EDT

If you thhink healthcare is expensive now, wait till it's free!

- Tuesday May 12, 2009 03:29PM EDT

Just remember, the majority of America voted for this jackass. Good thinking guys.

- Tuesday May 12, 2009 03:31PM EDT

System is currently broken and the definition of insanity is" DOING THE SAME THING AS IN THE PAST AND EXPECTING A DIFFERENT OUTCOME" That said we need to try something different!!

- Tuesday May 12, 2009 03:31PM EDT

we were screwed the day he, and the idiots he took with him, the day he went in!

Yahoo! Finance User
Yahoo! Finance User - Tuesday May 12, 2009 03:33PM EDT

We are definately screwed if the american people don't wake up and smell the coffee soon. Or I should say "Obama says: Drink my koolaid and you will feel great!"

- Tuesday May 12, 2009 03:35PM EDT

Good to see that things are finally changing. The Right Wing has failed in its efforts to convince the rest of the population in their premise that allowing the privilidged few to extort large sums of wealth from the masses will somehow create a thriving economy. The Financial Services industry, Real Estate speculators have fallen flat on their faces......Next up is the Insurance industry. Probably the most moraly bankrupt of all. Their time is up. Good riddance. Level the playing field....time to let Health care mean dealing with providers not fighting with suits ripping you off for little care. Keep in mind when they talk about the "un-insurred", they are not only talking about down-and-outers living off the system. They are talking about employed people with no help from their employeer in securing insurance, and of course the sick. There is no profit in insuring the sick so the insurance industry drops them at the first chance they get.

- Tuesday May 12, 2009 03:36PM EDT

Ever experienced socialized health care? Great if you have a cold or need a filling. If somethinig serious happens, well good luck!

- Tuesday May 12, 2009 03:36PM EDT

The Republicans better back up talking with doing something to stop this Socialism push. You can't cut health care costs, get more people in to it and expect to have quality health care. Bottom line is the Obama people don't care about "quality" . The people that don't have health care and will get it figure anything is better than nothing. The middle class and retirees get the bill and the shaft again.

- Tuesday May 12, 2009 03:38PM EDT

yadda yadda yadda.

- Tuesday May 12, 2009 03:38PM EDT

A big ole crapola pie and everyone is going to have to eat a slice.

Yahoo! Finance User
Yahoo! Finance User - Tuesday May 12, 2009 03:38PM EDT

Health Care for Americans....Finally!

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