OBAMA: Criticizes Insurers, Cites Need for Reform in Philadelphia Speech
President Obama on Monday traveled to Arcadia University near Philadelphia for a campaign-style rally aimed at generating public support for health reform legislation and encouraging lawmakers to cast a final vote on the overhaul, the Washington Post reports (Wilson, Washington Post, 3/8).
Obama’s speech — which he is scheduled to reprise on Wednesday in St. Louis — is a continuation of more direct efforts by the president to guide the reform process, following his bipartisan health reform summit and the release of his own overhaul proposal. Obama has set a March 18 deadline for the House to pass a Senate version of reform legislation (HR 3590), before he leaves for a trip to Asia. Congress likely will then consider a budget reconciliation bill to amend the Senate overhaul package (American Health Line, 3/8).
On Monday, Obama addressed a crowd of about 1,800 people and criticized insurance companies, citing rising premiums and lost coverage as reasons for passing health reform legislation. He said that “every year, insurance companies deny more people coverage because they have a preexisting condition,” adding, “Every year, they drop more people’s coverage when they’re sick and need it most. Every year, they raise premiums higher and higher” (Washington Post, 3/8).
Obama also discussed large rate increases for individual policyholders in various states. Obama said, “We can’t have a system that works better for the insurance companies than it does for the American people.” According to the New York Times, Obama focused on provisions in his reform proposal that would protect consumers, provide U.S. residents more choice in the health insurance market, expand coverage and help control health care costs (Cooper/Herszenhorn, New York Times, 3/8).
The president also encouraged voters to lobby Congress about the need for reform. He said, “They need to hear your voices because right now the Washington echo chamber is … as deafening as it’s ever been,” adding, “And as we come to that final vote, that echo chamber’s telling members of Congress, ‘Wait, think about the politics’ instead of thinking about doing the right thing” (CongressDaily, 3/8).
Obama Cites Goldman Sachs Analysis, Conference Call
Obama during the speech also cited a new analysis by New York investment bank Goldman Sachs that recommends investors buy shares in insurers UnitedHealth Group and Cigna. The analysis notes that health premiums are increasing, while competition is decreasing (CongressDaily, 3/8). Obama said that during a conference call organized by Goldman Sachs “[a]n insurance broker told Wall Street investors that insurance companies know they will lose customers if they keep raising premiums,” adding, “But since there’s so little competition in the insurance industry, they’re okay with people being priced out of health insurance because they’ll still make more by raising premiums on the customers they have. And they will keep doing this for as long as they can get away with it” (Washington Post, 3/8).
– Matthew Wayt
