President Barack Obama says America can no longer live with the status quo when it comes to healthcare.
"Currently, 14 million Americans lose their health insurance every day," he said in a July 22 TV briefing. "This is about Americans who don't have healthcare, and this is about every American who has ever worried about losing healthcare."
As Congress debates reform packages on Capitol Hill – none are looking likely to pass by the hoped-for August deadline – Obama has been endorsing change almost daily in speeches around the country. One of the sticking points in his plan has been cost, with wavering support from centrist Democrats and little support from Republicans.
Obama said he would like to see a bill pushed through as early as this summer, but won’t sign a bill that puts the burden on the middle class.
He also said his bill will be paid for in advance – "I won't add to the deficit – and I mean it."
Obama and some Democrats have said two-thirds of the cost of the proposed healthcare overhaul would come from eliminating wasteful and fraudulent use of taxpayer dollars. Where the remaining third comes from is up for debate, with Obama recommending limiting tax deductions for the wealthiest Americans. He said he is not sure if Congress will follow his advice, and currently the House is considering taxing Americans who jointly earn more than $1 million a year.
Office of Management and Budget Director Peter Orszag said the Obama plan would cost $750 billion to $1 trillion over 10 years. Most lawmakers have agreed on Obama's proposal to trim $600 billion from the Medicare and Medicaid programs by eliminating waste, changing reimbursement rates and adding competitive bidding for Medicare Advantage, he said.
Obama said his plan would likely cover up to 98 percent of Americans and would eliminate pre-existing conditions as an excuse for insurance companies to decline coverage and pick the most healthy and least expensive beneficiaries.
In a blog published online in the Des Moines Register, Sen. Charles Grassley (R-Iowa), ranking member of the Senate Finance Committee, said he supports a bipartisan solution, but draws the line at cost. He said the bill proposed by Sen. Edward Kennedy (D-Mass.) would blow "a $2 trillion hole in the federal deficit (already projected to reach $1.8 trillion by Sept. 30) and, like the House bill, massively expand the role of the federal government in delivering medicine in America."
Grassley said his only hope for a bipartisan bill would have to come out of the Senate Finance Committee.
Though the Democrats have enough votes to pass a bill, it’s unclear if all will support a reform package. In addition, Obama and other key leaders have said healthcare reform can’t succeed without Republican backing.