Obama Defends Health Care Overhaul

WASHINGTON (July 18) - President Barack Obama said Saturday his health care overhaul is financially sound, but a new analysis by congressional budget experts of emerging House legislation said it would increase deficits by $239 billion over a decade.

It was the sixth consecutive day Obama sought to keep the focus on his chief domestic priority in the face of mounting resistance on Capitol Hill, including conservative Democrats. Republicans also renewed their criticism.

The United States is the only developed nation that does not have a comprehensive national health care plan for all its citizens, and Obama campaigned on a promise to offer affordable health care to all Americans.

However, the recession and a deepening budget deficit have made it difficult to win support for costly new programs. Obama says that overhauling health care is vital to the United States' long-term economic recovery.

"I want to be very clear: I will not sign on to any health plan that adds to our deficits over the next decade," the president said in his weekly radio and Internet address. "And by helping improve quality and efficiency, the reforms we make will help bring our deficits under control in the long-term," he added.

The president's remarks were released late Friday, a few hours before an update by the Congressional Budget Office said the overall cost of the House bill would "result in a net increase in the federal budget deficit of $239 billion over the 2010-2019 period." The estimate included the cost of higher Medicare fees for doctors, an important ingredient of the measure for the American Medical Association. Medicare is the government-sponsored health insurance for the elderly, and the AMA, which represents physicians, endorsed the bill late last week.

The CBO analysis said the bill would result in a reduction in the deficit from 2010-2014, before it began to add red ink in gradually increasing amounts for the next five years.

Administration officials could not be reached for comment immediately.

About 50 million of America's 300 million people are without health insurance. The government provides coverage for the poor and elderly, but most Americans rely on private insurance, usually received through their employers. However, not all employers provide insurance and not everyone can afford to buy it on their own. With unemployment rising, many Americans are losing their health insurance when they lose their jobs.

Obama has said consistently the current drive for health care could be the last for the foreseeable future if it does not succeed.

"This is what the debate in Congress is all about: whether we'll keep talking and tinkering and letting this problem fester as more families and businesses go under and more Americans lose their coverage," Obama said in his weekly address. "Or whether we'll seize this opportunity — one we might not have again for generations — and finally pass health insurance reform this year, in 2009."

Through the week, Obama tried to project confidence about his approach to cover millions of uninsured people. During a private meeting with Jewish leaders on Monday, he joked that the only thing more difficult than passing health care legislation might be negotiating Mideast peace.

At a late scheduled White House appearance Friday, he appealed to lawmakers not to "lose heart" and asked for deeper cost cuts to calm concern over the huge expense.

Republicans were not swayed.

"The president and some Democrats insist we must rush this plan through," said Sen. Jon Kyl. "Why? Because the more Americans know about it, the more they oppose it. Something this important needs to be done right, rather than done quickly."

Two House committees on Friday approved their parts of the bill over Republican objections. That left one more to act. But Democrats facing tough re-election bids or representing conservative districts demanded additional measures to hold down costs.