Health

WASHINGTON (AP) ― Health and Human Services Secretary Kathleen Sebelius on Wednesday defended President Barack Obama's call for a new public health insurance plan in the face of strong opposition from Republicans and fresh criticism from a powerful business group.

Sebelius told the House Energy and Commerce Committee that a government-run option would increase choice and competition, but the U.S. Chamber of Commerce said in testimony that it would "gut the private market."

"Whether or not this proposal is a Trojan horse for single-payer health care, it is apparent that its cause is ideological, not pragmatic," the chamber said Wednesday.

Argued Sebelius: "If there is no choice in the market, cost regulation is almost irrelevant. It's a marketplace strategy that competition is often more effective than heavy-handed regulation."

Obama and his administration stepped up the campaign for comprehensive health care overhaul that would reduce costs and provide coverage to nearly 50 million uninsured Americans. The president planned a meeting with several governors Wednesday afternoon and a prime-time town hall to be broadcast on ABC.

In an interview with ABC News that aired Wednesday morning, Obama declined to say whether he was open to taxing health benefits. But he indicated there was a breaking point in the balance sheets where he would say that the cost of reforming the system is too great for the federal government to handle.

"I'm going to wait and see what ideas ultimately they (Congress) come up with," he said on ABC's "Good Morning America."

"I think that if any reform that we get is not driving down costs in a serious way," Obama added. "If people say, 'We're just going to add more people onto a hugely inefficient system,' then I will say no. Because ... we can't afford it."

Republicans and outside groups are making the public plan issue a focus of stepped-up television ad campaigns that warn of a government takeover of health care, contending the result would be rationing of care similar to Canada and other countries.

But Sebelius said that "rationing, frankly, is something that happens each and every day under our current system." It's done by private insurers, she said.

Sebelius also told lawmakers that Obama is willing to listen to suggestions on how to pay for a health care overhaul, as long as they don't increase the deficit. She testified as Democrats struggle with the $1 trillion-plus price tag over 10 years.

Obama's policies, including a stimulus package earlier this year designed to jump-start the economy, have added to the federal budget deficit, stirring public restiveness that could undermine his domestic agenda. About $1.3 trillion when Obama took office, this year's deficit is on track to soar to a record $1.85 trillion after his massive influx of federal spending to help struggling homeowners, stabilize frozen credit markets and bail out troubled banks, automakers and insurers.

Although lawmakers are considering an option Obama has opposed — taxing employer-provided benefits — Sebelius' testimony indicates that the administration is ready to be flexible if Congress can deliver a bill.

That has seemed uncertain, as cost concerns and partisan disputes have stalled progress. Sebelius used her testimony to encourage Democratic efforts — and to make clear that Obama expects lawmakers to deliver.

"Health reform constitutes our most important domestic priority," she said.

A new Washington Post-ABC poll found that most Americans are "very concerned" that a health care overhaul would lead to higher costs, lower quality, fewer choices, a bigger deficit, diminished insurance coverage and more government bureaucracy. About six in 10 are at least somewhat worried about all of these factors, the poll found.

More than eight in 10 said they were satisfied with the quality of care they now receive and were relatively content with their own current expenses.

Addressing that issue, Obama on Tuesday dismissed as "not logical" the insurance lobby's assertion that a new government health plan he backs would dismantle the employer-sponsored coverage most Americans now have. Yet, despite the harsh words from the president, senators attending a Tuesday evening meeting in the Capitol with White House Chief of Staff Rahm Emanuel said the administration was not ready to abandon the search for compromise.

That puts the spotlight on a small group of senators who are trying to find common ground on the issue of giving the middle class the option of joining a government health plan. Republicans are almost unanimously opposed, while Democrats insist it must be part of any final deal.

Dubbed "the coalition of the willing," the Senate group is focusing on nonprofit co-ops as an alternative both to private insurance and full-blown government intervention.

"The co-op proposal is alive and well, and negotiations are ongoing," said Sen. Kent Conrad, D-N.D., who proposed the idea, adding that it's the only version of a public plan that stands a chance of getting Republican support.

(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)