Obama has been talking about health care often and for months---with business leaders, state elected official, members of Congress, the public, in town halls and in his weekly address.
MARCH3/5/2009
Remarks by the President at the Opening of the White House Forum on Health Reform3/5/2009
Closing Remarks by the President at White House Forum on Health Reform, followed by Q&A, 3/5/09 3/6/2009
President Obama Announces Series of Regional White House Forums To Be Held Across CountryBuilding on Thursday’s White House Forum on Health Care Reform, President Obama announced a series of Regional White House Forums on Health Reform that will bring the conversation about health care reform directly to communities across the country. In keeping with the Obama administration’s commitment to a transparent, accountable government, the forums will be an opportunity for Americans from all over the country to voice their concerns and ideas about reforming our health care system.
3/21/2009
Weekly Address: President Obama to Focus on Budget Priorities Next WeekIn his weekly address, President Barack Obama announced that in the coming week, he will highlight the core principles of his budget: cutting the deficit in half by the end of his first term and making investments in long-delayed priorities like energy independence, education and health care reform.
3/26/2009
Remarks by the President at "Open for Questions" Town HallSo this is why any reform of the health care system I think has to address this issue, and to say we are going to allow anybody to get health insurance. And if you've got a preexisting condition you're not going to be excluded but you're going to be able to obtain health insurance. And if you can't obtain it through a private plan then there is going to a public plan that is available in some way to give you insurance, or insurers are obligated to provide you with insurance in some way.
APRIL4/3/2009
Statement By The President On Senate Passage Of FY10 BudgetTonight, the Senate has joined the House of Representatives in taking an important step toward rebuilding our struggling economy. This budget resolution embraces our most fundamental priorities: an energy plan that will end our dependence on foreign oil and spur a new clean energy economy; an education system that will ensure our children will be able to compete in the economy of the 21st century; and health care reform that finally confronts the back-breaking costs plaguing families, businesses and government alike. And by making hard choices and challenging the old ways of doing business, we will cut in half the budget deficit we inherited within four years. With this vote comes an obligation to pursue our efforts to go through the budget line-by-line, searching for additional savings. Like the families we serve, we must cut the things we don't need to invest in those we do.
4/8/2009
Executive Order Establishing The White House Office Of Health ReformMAY5/11/2009
Today's Health Care Costs Meeting-Participants, Fact Sheet, and Letter5/11/2009
Remarks by the President on Reforming the Health Care System to Reduce Costs5/12/2009
Fact Sheet Innovative Workplace Practices: A Discussion With President ObamaAll over the country, innovative ideas are being implemented in the workplace to improve the health of workers and reduce the rising rate of health care spending.
5/12/2009
Remarks by the President after Roundtable with Business Leaders on Health Care Costs5/12/2009
Letter from the President to health care stakeholdersIt was a pleasure to meet with all of you yesterday. As I said yesterday, health care reform will require all of us working together-from drug and insurance companies to labor unions and business executives, from doctors to hospitals and Members of Congress.
5/13/2009
Statement by the President after meeting with House Democratic leadership5/18/2009
Remarks by the President at Keep Indiana Blue Fundraiser in Indianapolis, 5/17/2009And that's why I'm here tonight. That's why I'm here, because I can't bring the change I promised all by myself. I can't rebuild our economy, and reform our health care system and our education system, and preserve our environment, and keep our nation safe if I'm all alone in the Oval Office. That's not how our democracy works.
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We need their help to pass a comprehensive energy plan and climate bill that will finally reduce our dependence on foreign oil, cap carbon pollution that threatens our health and our climate -- (applause) -- a plan that will create millions of new jobs producing wind turbines and solar panels and the alternative fuels that will power the future. Because we know that the nation that leads on energy, on clean energy in the 21st century, that's the nation that will lead economically -- and America can and must be that nation.
I need these gentlemen's help to create a 21st century health care system that's cutting costs for families and businesses. (Applause.) I've already met with representatives from the insurance and drug companies, from doctors and hospitals and labor unions. These groups, some of them used to be fierce critics of health care reform back in 1993. But today, they've pledged to do their part to reduce the annual health care spending growth rate by 1.5 percent. And coupled with comprehensive reform, that could save us up to $2 trillion -- $2,500 per family every year. And working with these congressmen, we're going to do everything we can to achieve comprehensive health care reform by the end of this year. (Applause.)
JUNE6/3/2009
Letter from President Obama to Chairmen Edward M. Kennedy and Max BaucusThe meeting that we held today was very productive and I want to commend you for your leadership -- and the hard work your Committees are doing on health care reform, one of the most urgent and important challenges confronting us as a Nation
6/19/2009
Statement by the President on the Progress of Health Care Reform Legislation in the House6/22/2009
Remarks by the President on the Medicare Part D "Doughnut Hole" and AARP Endorsement6/23/2009
Press Conference by the President, 6-23-09Now, the public plan I think is a important tool to discipline insurance companies. What we've said is, under our proposal, let's have a system the same way that federal employees do, same way that members of Congress do, where -- we call it an "exchange," or you can call it a "marketplace" -- where essentially you've got a whole bunch of different plans. If you like your plan and you like your doctor, you won't have to do a thing. You keep your plan. You keep your doctor. If your employer is providing you good health insurance, terrific, we're not going to mess with it.
But if you're a small business person, if the insurance that's being offered is something you can't afford, if you want to shop for a better price, then you can go to this exchange, this marketplace, and you can look: Okay, this is how much this plan costs, this is how much that plan costs, this is what the coverage is like, this is what fits for my family. As one of those options, for us to be able to say, here's a public option that's not profit-driven, that can keep down administrative costs and that provides you good, quality care for a reasonable price -- as one of the options for you to choose, I think that makes sense.
6/24/2009
Remarks by the President after meeting with Governors Granholm, Douglas, Doyle, Rounds, and Gregoire to discuss health care6/25/2009
Remarks By The President In ABC "Prescription For America" Town Hall On Health Care, 6-24-09JULY7/1/2009
Remarks of the President in an Online Town Hall on Health Care ReformI also strongly believe that one of the options in the exchange should be a public option, in order for us to create some competition for the private insurers to keep them honest. If they are in fact giving good service and providing high-quality coverage, then that's where people will want to go. But there should be a benchmark there of a public plan, non-for-profit plan, that keeps administrative costs low and is focused on providing good service. And that way you can make the decision which deal is going to be better for you and your family.
7/2/2009
Statement by the President on Health Care Reform Bill Released by Senate HELP Committee TodayFor decades, Washington has failed to act as health care costs continued to rise, crushing businesses, families and placing an unsustainable burden on governments. Today the Senate HELP committee has produced legislation that lowers costs, protects choice of doctors and plans and assures quality and affordable health care for Americans. The Congressional Budget Office has now issued a more complete review of this bill, concluding that it will cost less and cover more Americans than originally estimated. It also contains provisions that will protect the coverage Americans get at work. When merged with the Senate Finance Committee’s companion pieces, the Senate will be prepared to vote for health reform legislation that does not add to the deficit, reduces health care costs and covers 97% of Americans.
The HELP Committee legislation reflects many of the principles I’ve laid out, such as reforms that will prohibit insurance companies from refusing coverage for people with pre-existing conditions and the concept of insurance exchanges where individuals can find affordable coverage if they lose their jobs, move or get sick. Such a marketplace would allow families and some small businesses the benefit of one-stop-shopping for their health care coverage and enable them to compare price and quality and pick the plan that best suits their needs.
Among the choices that would be available in the exchange would be a public health insurance option. The public option would make health care affordable by increasing competition, providing more choices and keeping the insurance companies honest.
The legislation also improves the quality of patient care, improves safety for patients and strengthens the commitment to preventive health care – preventing people from getting sick in the first place.
I thank chairman Kennedy, Senator Dodd, and all the members of the HELP Committee for their hard work on health reform.
7/3/2009
WEEKLY ADDRESS: President Obama Celebrates Independence Day and the American Spirit7/7/2009
Statement from the President on Health Care ReformI am pleased by the progress we're making on health care reform and still believe, as I've said before, that one of the best ways to bring down costs, provide more choices, and assure quality is a public option that will force the insurance companies to compete and keep them honest. I look forward to a final product that achieves these very important goals.
7/8/2009
Background On Todays Health Care AnnouncementAs families, businesses and governments struggle with the increasing burden of health care costs, hospital leaders are joining with the Administration to say the status quo is no longer sustainable. Like others in the health care industry, hospitals have seen firsthand that Americans with health insurance are struggling to pay their health care bills because they are under-insured and their out of pocket expenses are rising. Often those without insurance – because they have lost a job or someone in their family suffers from a pre-existing condition – are forced to throw themselves on the mercy of America’s hospitals. Hospitals absorb some of the cost of caring for Americans without insurance – while the remainder is passed on to taxpayers or Americans with insurance. The hospital industry agrees with the President that the time to enact health reform that lowers costs and assures quality and affordable coverage for all Americans is now.
Now is the time to reform an unsustainable health care system that is imposing crushing costs on families, businesses, large and small, and state and federal budgets. We need to protect what works, fix what’s broken, and bring down costs for all Americans. No more talk. No more delay. Health care reform must happen this year.
7/14/2009
Statement by the President on the Health Care Reform Legislation Introduced in the House Today"For decades, Washington failed to act as health care costs continued to rise, crushing businesses and families and placing an unsustainable burden on governments. But today, key committees in the House of Representatives have engaged in unprecedented cooperation to produce a health care reform proposal that will lower costs, provide better care for patients, and ensure fair treatment of consumers by the insurance industry.
This proposal controls the skyrocketing cost of health care by rooting out waste and fraud and promoting quality and accountability. Its savings of more than $500 billion over 10 years will strengthen Medicare and contribute to our goal of reforming health care in a fiscally responsible way. It will change the incentives in our health care system so that Americans can receive the best care, not the most expensive care. And it will offer families and businesses more choices and more affordable health care.
This proposal will also prevent insurance companies from denying people coverage because of a pre-existing medical condition. It will ensure that workers can still have health insurance if they lose their job, change their job or start a new business. And it includes a health insurance exchange that will allow families and small businesses to compare prices and quality so they can choose the health care plan that best suits their needs. Among the choices that would be available in the exchange would be a public health insurance option that would make health care affordable by increasing competition, providing more choices, and keeping the insurance companies honest.
The House proposal will begin the process of fixing what’s broken about our health care system, reducing costs for all, building on what works, and covering an estimated 97% of all Americans. And by emphasizing prevention and wellness, it will also help improve the quality of health care for every American.
I thank Chairmen Rangel, Waxman, and Miller for their hard work on this bill that fundamentally reforms the health care system. As this process moves forward, I look forward to continuing to work with all House members in ensuring this legislation helps all Americans and plays an essential role in reducing deficits and bringing fiscal sustainability to our nation."
7/15/2009
Statement by the President on the Health Care Reform Legislation Passed Today by the Senate HELP Committee"Today, thanks to the unyielding passion and inspiration provided by Senator Edward Kennedy, the HELP committee he chairs has produced a proposal that will finally lower health care costs, provide better care for patients, and ensure fair treatment of consumers by the insurance industry.
Like the legislation produced by the House of Representatives, this proposal would offer Americans quality, affordable health care that is there when they need it. No longer will insurance companies be able to deny coverage based on a pre-existing medical condition. No longer will Americans have to worry about their health insurance if they lose their job, change their job, or open a new business.
This proposal will bring down costs, expand coverage, and increase choice. Through a health insurance exchange, families and small businesses will be able to compare prices and quality so that they can choose the health care plan that best suits their needs. Among the choices that would be available in the exchange would be a public health insurance option that would make health care affordable by increasing competition, providing more choices, and keeping the insurance companies honest.
This proposal would also control rising costs by investing in preventive care and wellness programs, rooting out waste and fraud in the system, and changing the incentives that automatically equate the most expensive care with the best care.
When this proposal is combined with other proposals that the Senate Finance Committee is working on, it’s estimated that health reform will cover 97% of all Americans.
The HELP committee’s success should give us hope, but it should not give us pause. It should instead provide the urgency for both the House and Senate to finish their critical work on health reform before the August recess. I want to commend Senator Kennedy, Senator Dodd, as well as Senators Harkin, Mikulski, Bingaman, and Murray on the leadership they’ve shown and the foundation they’ve laid to reform our health care system."
7/15/2009
Remarks by the President on Health Care Reform7/16/2009
Statement from the President on the American Medical Association's Support for H.R. 32007/20/2009
Remarks by the President on Health Care at Children's Hospital7/21/2009
Remarks by the President on Health Care and the Senate Vote on F-22 FundingWe'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.
7/22/2009
Excerpts of the President's Opening Remarks at Tonight's News Conference, 7-22-09That is why I’ve said that even as we rescue this economy from a full-blown crisis, we must rebuild it stronger than before. And health insurance reform is central to that effort.
This is not just about the 47 million Americans who have no health insurance. Reform is about every American who has ever feared that they may lose their coverage if they become too sick, or lose their job, or change their job. It’s about every small business that has been forced to lay off employees or cut back on their coverage because it became too expensive. And it’s about the fact that the biggest driving force behind our federal deficit is the skyrocketing cost of Medicare and Medicaid.
So let me be clear: if we do not control these costs, we will not be able to control our deficit. If we do not reform health care, your premiums and out-of-pocket costs will continue to skyrocket. If we do not act, 14,000 Americans will continue to lose their health insurance every single day. These are the consequences of inaction. These are the stakes of the debate we’re having right now.
I realize that with all the charges and criticisms being thrown around in Washington, many Americans may be wondering, "What’s in this for me? How does my family stand to benefit from health insurance reform?"
Tonight I want to answer those questions. Because even though Congress is still working through a few key issues, we already have agreement on the following areas:
If you already have health insurance, the reform we’re proposing will provide you with more security and more stability. It will keep government out of health care decisions, giving you the option to keep your insurance if you’re happy with it. It will prevent insurance companies from dropping your coverage if you get too sick. It will give you the security of knowing that if you lose your job, move, or change your job, you will still be able to have coverage. It will limit the amount your insurance company can force you to pay for your medical costs out of your own pocket. And it will cover preventive care like check-ups and mammograms that save lives and money.
If you don’t have health insurance, or are a small business looking to cover your employees, you’ll be able to choose a quality, affordable health plan through a health insurance exchange – a marketplace that promotes choice and competition Finally, no insurance company will be allowed to deny you coverage because of a pre-existing medical condition.
I have also pledged that health insurance reform will not add to our deficit over the next decade – and I mean it.
7/23/2009
News Conference by the President, July 22, 2009Q Thank you. To follow up on Jake's question earlier, sir, so many Americans are concerned that this plan, particularly the government insurance, the public option, would lead to reduced benefits or reduced coverage.
Two questions. One, can you guarantee that this legislation will lock in and say the government will never deny any services; that that's going to be decided by the doctor and the patient, and the government will not deny any coverage? And secondarily, can you, as a symbolic gesture, say that you and the Congress will abide by the same benefits in that public option?
THE PRESIDENT: Well, number one, not only the public option but the insurance regulation that we want to put in place will largely match up with what members of Congress are getting through the federal employee plan. That's a good example of what we're trying to build for the American people -- the same thing that Congress enjoys, which is they go -- there is a marketplace of different plans that they can access, depending on what's best for their families.
Now, one of the plans that we've talked about is a public option. And part of the reason we want to have a public option is just to help keep the insurance companies honest. If the insurance companies are providing good care -- and as it is, they're going to be more regulated so that they can't deny you care because of a preexisting condition or because you change jobs or because they've decided you're too sick and not a good risk -- with regulation there's already going to be some improvement in the insurance industry.
But having a public plan out there that also shows that maybe if you take some of the profit motive out, maybe if you are reducing some of the administrative costs, that you can get an even better deal, that's going to incentivize the private sector to do even better. And that's a good thing. That's a good thing.
7/23/2009
Background On The President's Events In Ohio TodayThis afternoon President Obama will visit the Cleveland Clinic in Cleveland, Ohio. He will be accompanied by Governor Ted Strickland. At the clinic, President Obama will hold a brief discussion with doctors and nurses to not only learn about their innovative health care practices, but to also hear their thoughts on health reform and the current state of our nation’s health care system.
7/23/2009
Remarks by the President at Health Care Reform Town Hall7/28/2009
Remarks by the President in AARP Tele-Town Hall on Health Care ReformThe other reason we can drive your costs down is you'd be part of a huge pool, right? Part of the reason why large companies are typically able to offer lower insurance premiums for their employees than small companies is they've got a big pool. The federal government is a classic example. The Federal Health Employees Program is a pretty good deal, because you've got several million people who are part of it. So that gives you a lot of bargaining power with the insurers. Well, the exchange will provide that same market power to help negotiate with the insurers to drive prices down.
And the other thing that we do want to do -- now, this is controversial, and I understand some people are worried about this -- we do think that it makes sense to have a public option alongside the private option. So you could still choose a private insurer, but we'd also have a public plan that you could choose from that would be non-for-profit, wouldn't have, hopefully, some of the same high administrative costs, and would be potentially more responsive to your needs at a lower cost. I think that helps keep the insurance companies honest because now they have somebody to compete with.
And I have to say, the reason this has been controversial is a lot of people have heard this phrase "socialized medicine" and they say, we don't want government-run health care; we don't want a Canadian-style plan. Nobody is talking about that. We're saying, let's give you a choice. You can choose the private marketplace, or this other approach.
And I got a letter the other day from a woman; she said, I don't want government-run health care, I don't want socialized medicine, and don't touch my Medicare. (Laughter.) And I wanted to say, well, I mean, that's what Medicare is, is it's a government-run health care plan that people are very happy with. But I think that we've been so accustomed to hearing those phrases that sometimes we can't sort out the myth from the reality.
7/29/2009
Remarks by the President at Town Hall in Raleigh, North CarolinaTHE PRESIDENT: I'm for the public option. (Applause.)
So I just want everybody to know, Congress will have time to read the bill. They will have time to debate the bill. They will have all of August to review the various legislative proposals. When we come back in September, I will be available to answer any question that members of Congress have. If they want to come over to the White House and go over line by line what's going on, I will be happy to do that. (Applause.)
We are not trying to hide the ball here. We're trying to get this done. But the American people can't wait any longer. (Applause.) They want action this year. I want action this year. And with your help, we're going to make it happen, North Carolina.
7/29/2009
Statement from the President on Health Insurance Reform Efforts in Congress"I want to thank the members of both the Senate and House of Representatives for continuing their work on health reform to provide more stability and security for Americans who have insurance, and quality, affordable coverage for those who don’t. I’m especially grateful that so many members, including some Blue Dogs on the Energy and Commerce Committee, are working so hard to find common ground. Those efforts are extraordinarily constructive in strengthening this legislation and bringing down its cost."
AUGUST8/1/2009
Statement from the President on House Energy and Commerce Committee Passage of Health Insurance ReformI’m pleased that the third and final House committee working on health reform legislation has successfully passed a bill that would provide quality, affordable health insurance for all Americans. This historic step by the House Energy and Commerce Committee moves us closer to health insurance reform than we have ever been before.
On Monday, August 3, the White House released a behind-the-scenes
video showing how the 10 letters the President reads every day are chosen from the tens of thousands he receives daily. These letters help to inform the President’s position on health insurance reform.
On Saturday, August 8, President Obama emphasized in his
weekly radio address that health insurance reform is critical to our nation’s long-term economic growth and dispelled some of the rumors being promoted by those who are defending the status quo.
On Monday, August 10, the White House announced a new
Reality Check website that focuses on what reform really means for you and your family, debunks some common myths about health insurance reform, and provides online tools to share.
8/11/2009
Remarks by the President at Town Hall on Health Insurance Reform in Portsmouth, New HampshireUnder our proposal, the majority of Americans will still be getting their health care from private insurers. All we want to do is just make sure that private insurers are treating you fairly so that you are not buying something where if you failed to read the fine print, next thing you know, when you actually get sick, you have no coverage.
We also want to make sure that everybody has some options. So there's been talk about this public option. This is where a lot of the idea of government takeover of health care comes from. All we want to do is set up a set of options so that if you don't have health insurance or you're underinsured you can have the same deal that members of Congress have, which is they can look at a menu of options -- we're calling it an exchange, but it’s basically just a menu of different health care plans -- and you will be able to select the one that suits your family best.
And I do think that having a public option as part of that would keep the insurance companies honest, because if they've got a public plan out there that they've got to compete against, as long as it's not being subsidized by taxpayers, then that will give you some sense of what -- sort of a good bargain for what basic health care would be. (Applause.)
8/14/2009
Remarks by the President in town hall on health care, Belgrade, MontanaThat's why what we want to do is create an exchange -- it's like a marketplace -- where you can go and choose from a menu of different options, different kinds of plans that you think might be right for you. And one of the options that's being debated is, should there be a public option, all right? (Applause.) And I want to -- I want to just explain this briefly, because this is where the whole myth of a government takeover of health care comes from. And not everybody -- not even every Democrat -- agrees on the public option, but I just want at least people to be informed about what the debate is about.
The idea is, if you go to that marketplace and you're choosing from a bunch of different options, should one of the options be a government-run plan that still charges you premiums? You still have to pay for it just like private insurance, but government would not -- this government option would not have the same profit motive. It would be obviously like a non-for-profit. It would have potentially lower overhead, so it might be able to give you a better deal, should you be able to choose from that option among many others. That's what the debate is about. (Applause.)
Now, what the opponents of a public option will argue is, you can't have a level playing field; if government gets into the business of providing health insurance, they will drive private insurers out of the health insurance market. That's the argument that's made. (Applause.) And I -- that is a legitimate, it's a fair concern, especially if the public option was being subsidized by taxpayers, right? I mean, if they didn't -- if they could just keep on losing money and still stay in business, after a while they would run everybody else out. And that's why any discussion of a public option has said that it's got to pay for itself, it's not subsidized by private insurers.
The only point I want to make about this is whether you're for or against a public option, just understand that the public option is not a government takeover of health insurance. Everybody here who still has -- who has currently private insurance, you would more than likely still be on your private insurance plan. Employers wouldn't stop suddenly providing health insurance. So that is where this idea of government-run health care came from. It is not an accurate portrayal of the debate that's going on in Washington right now. All right?
8/15/2009
Remarks By The President In Town Hall On Health Care Grand Junction ColoradoTHE PRESIDENT: No, I think it's a good question. Thank you. For those of you who have not been following the debate as closely, let me just describe what this issue of the public plan is all about. And to do so, I've got to describe how we're looking to provide health insurance for people who currently don't have it. I spent most of my time talking about what we would do for folks who have health insurance, but we've still got 46 million uninsured and I think it is the right thing to provide them with some help. Most of them work. Most of them are responsible. But their employer -- maybe they work for a small business -- their employer just can't afford it because they don't have the bargaining power to get low enough rates to cover all their employees. That's a big category of the uninsured.
So what we've said is, let's set up what's called a health insurance exchange. It's essentially a marketplace where you could go online and you'd have a menu of options, most of them private insurers -- Aetna, BlueCross BlueShield -- insurance companies that wanted to participate, and they would list a range of plans just like when Mike and Mark want to get health insurance as members of the Senate, they go on to this exchange for federal health care -- for federal employees, and they select which plan works best for their families.
So we want everybody to be able to access that and choose which plan works best for them. And if they can't afford it, even though we'd have a lot of bargaining power, we'd be able to get the same kinds of rates that really big companies are able to get or the federal system is able to get, some people will still not be able to afford it, and then we would provide some subsidies. And there would be certain rules governing any insurance company that's participating: You couldn't exclude for preexisting conditions; you couldn't have a lifetime cap; you'd have to limit out-of-pocket expenses. So all the insurance rules that I talked about, that would be part of the deal if you as an insurer wanted to sell insurance through this exchange.
So far, so good. The argument around public option is, should one of the choices -- not the only choice -- but one of the choices on that exchange be a public option? And the idea here would be that a government-run non-for-profit would have its own option that people could sign up for -- they wouldn't have to, but they could sign up for it -- and if it could keep its costs lower and provide a good-quality service and good benefits, then that would help keep the insurance companies honest -- (applause) -- because the idea being -- the idea being that as a non-for-profit, potentially with lower administrative costs, they could do a good job.
Now, the insurance companies have come back and said, well, that's not fair, because nobody can compete against the government. They have a legitimate point if, if what's being done is the government is either subsidizing that government plan -- essentially taking taxpayer money and saying, here, we'll just keep on spending money regardless of whether you run a good operation or not, then it's hard for insurance companies to compete against that. And by the way, it would be wildly expensive for taxpayers.
So I've already said a public option can only work if they have to collect premiums just like a private insurer and compete on a level playing field. That's point number one.
The second argument that's been made is the one that you just made, which is, if public option is reimbursing at Medicaid rates that are substantially lower than what private insurers have to negotiate for, then eventually, over time, private insurers might be run out of business. So that's the second argument.
Now, what's happened in the House bill, that as it's been modified, is they've actually said we're going to negotiate rates, they won't be Medicaid rates. So that actually solves the problem that you're addressing, because now this would be a negotiated process and prices would not be set just to Medicaid. All right?
Now, there's a third argument against the public option, and this is the one, really, that you've been hearing mostly about, and that is just this idea that we shouldn't have government involved at all, that government is part of the problem, not part of the solution, to quote Ronald Reagan. (Applause.) We've got some supporters of that view. And I guess the only -- look, I think you can have a legitimate position just saying you don't want to see more government involvement. I understand the argument. The only thing I would point out is, is that Medicare is a government program that works really well for our seniors and has protected people -- (applause) -- hold on one second, let's not start yelling.
It's true that it's expensive, but the truth is that actually the cost of Medicare inflation has actually gone up at a slower rate than private insurance. So it's not because it's mismanaged; it's because of what was referred to in the first question -- the whole health care system is out of whack and way too expensive. It's not government, per se. It has to do with the fact that the health care system itself, the delivery systems, are not working the way they should.
So if you just believe the government shouldn't be involved in anything, or shouldn't be involved in health care, period, then you're right that you can't support the kind of reform that we're proposing. The only thing I want to make sure of, though, is you've got to -- you make an honest argument, because nobody is talking about government takeover of health care. There's a difference between what we're proposing, which has some government involvement, versus this idea that somehow government is going to take over everything and get between your and doctor. That's not what we're proposing.
So we can have an honest disagreement, but I just want to be clear on what the debate is about. It's about this narrow issue of the public plan. It's not about somehow eliminating private insurance. Everybody who has currently private insurance that works for them will be able to keep private insurance under the proposals that have been made in Congress. All right? (Applause.)
8/20/2009
Remarks by the President at the Organizating for America National Health Care ForumSo that is absolutely critical. Now, one of the options we want to provide them is a public option, and there's been -- this has been a confusion around this -- (applause) -- there's been a lot of confusion about this, so let me just clarify. I think a public option is important. And let me explain why.
We're going to have a marketplace where people can select the options that work best for them, the insurance plan that works best for them. A lot of those choices, the overwhelming majority of those choices, will be private insurance options, just like members of Congress have -- they're allowed to choose from various proposals or various plans that are part of the federal employees' health plan.
But what we do think is if we have a public option in there, that can help keep insurers honest; it can provide a benchmark for what an affordable basic plan should look like. And so even though we've got a whole bunch of insurance regulations that ensure that any private insurer that's participating in the exchange is giving you a fair deal, this is sort of like the belt-and-suspenders concept -- it means that not only do they have to abide by these regulations, but they also have to compete with somebody whose interest is not just profit but instead is interested in making sure that the American people get decent care.
Now, having said that -- (applause) -- having said that, I want everybody to be clear that the public option is just one option. It will be voluntary. Nobody is talking about you having to be in the public option. Only -- the only thing that we're talking about is this being available to you as a choice, expanding consumer choice. And we think that's a good idea.
8/22/2009
WEEKLY ADDRESS: President Obama Debunks "Phony Claims" about Health Reform; Emphasizes Consumer ProtectionsNow, the source of a lot of these fears about government-run health care is confusion over what’s called the public option. This is one idea among many to provide more competition and choice, especially in the many places around the country where just one insurer thoroughly dominates the marketplace. This alternative would have to operate as any other insurer, on the basis of the premiums it collects. And let me repeat – it would be just an option; those who prefer their private insurer would be under no obligation to shift to a public plan.
The insurance companies and their allies don’t like this idea, or any that would promote greater competition. I get that. And I expect there will be a lot of discussion about it when Congress returns.
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