CNN - Obama: Health care reform central to economic recovery

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Obama: Health care reform central to economic recovery

President Obama said Wednesday that health care reform is "central" to successfully rebuilding the U.S. economy after the current economic crisis.

"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," Obama said in a nationally televised news conference Wednesday night.

Spiraling health care costs are bankrupting Americans, causing 14,000 people to lose their health insurance coverage every day, and also will bankrupt the nation if allowed to continue, Obama said.

"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," he said.

"These are the stakes of the debate we're having right now."

As he laid out the list of benefits that health care reform offers, he dropped a direct reference to a government-funded public health insurance option.

Until now, Obama has consistently touted the government-funded public option as competition for private insurers in expanding access to health coverage.

It was unclear if Obama changed the wording to avoid a label opposed by Republican supporters, or if he was signaling a policy shift toward a compromise being negotiated by the Senate Finance Committee to have health insurance cooperatives rather than a government-funded public option.

Instead, he promised that his plan would offer "security" and "stability" to sick and healthy Americans.

"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," he said.

He also said his program would not add to the deficit over the next decade, addressing concerns from Republican opponents and fiscally conservative Democrats over the costs of the program.

"Already, we have estimated that two-thirds of the cost of reform can be paid for by reallocating money that is simply being wasted in federal health care programs. This includes over $100 billion in unwarranted subsidies that go to insurance companies as part of Medicare -- subsidies that do nothing to improve care for our seniors," he said.

Earlier Wednesday, Obama worked the phones, urging lawmakers to embrace health care reform, White House Communications Director Anita Dunn said Wednesday.

It follows the president's Tuesday meeting with Democrats at the White House, dubbed a "serious working session" where "major progress" was made, Dunn said.

Officials said Obama will be taking a more hands-on approach with members of Congress in the days and weeks to come regarding the health care debate.

Tuesday, House Energy and Commerce Chairman Rep. Henry Waxman of California and six other committee members met at the White House for more than two hours -- and during one hour the president was with them, aides said.

During that meeting the six so-called Blue Dog Democrats gave their list of 10 demands on how they want the bill changed, including ways to cut costs, according to aides.

Some argued the Medicare advisory council, which advises Congress in setting rates for reimbursement to medical providers under the Medicare program, should be empowered to make changes in cost-related issues. White House aides said they want the panel to be empowered to make cuts in benefits and increases in premiums, and to force those changes, unless Congress rejects.

While lawmakers say a tentative deal was reached on this point, White House officials would only say the president "agreed with the lawmakers he met with [on] the need to cut costs."

They refused to confirm there was a verbal agreement because there was "not an actual ink agreement" regarding the council. "The process is still going on," one official said.

White House aides say the administration is concerned about three centers of serious opposition from House Democrats: the fiscally conservative Blue Dog Democrats who are worried about the cost of a public health care plan; the freshmen and other Democrats from high-income districts who are concerned about taxes for high-income Democrats, and the anti-abortion Democrats who are concerned about federal funding going for abortion services, and whether health care providers can opt out of certain procedures.

One official said the administration is aware that "if any of these three groups abandon the effort the bill would be impossible to get out of committee, much less pass."

Aides say the president and lawmakers also discussed the public option versus a co-op option.