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Obama challenges health insurance industry arguments

Saying it's not logical to complain that the government 'can't run anything' but will put them out of business, he also leaves room for compromise on a public plan as Congress tackles the issue.

June 24, 2009|Noam N. Levey and Peter Nicholas

WASHINGTON — In an effort to maintain control of the healthcare debate, President Obama on Tuesday ridiculed critics of his government-run insurance proposal, saying private insurers have nothing to fear if they are efficient and consumer-friendly.

"If private insurers say that the marketplace provides the best-quality healthcare -- if they tell us that they're offering a good deal -- then why is it that the government, which they say can't run anything, suddenly is going to drive them out of business?" Obama asked. "That's not logical."

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At the same time, the president left the door open to compromise with the private insurance industry as Congress begins the process of tackling one of the most complex and politically sensitive issues on the national agenda.

In a news conference Tuesday, Obama framed his proposal as the only way to break the cycle of ever-higher medical costs that has sapped the financial stability of families and the government.

At the same time, however, he refused to rule out the possibility that he might sign a healthcare bill that did not include a public-plan option.

"We are still early in this process," he told reporters at the White House. "We have not drawn lines in the sand."

The president, who last week both challenged and sought to appease doctors in a speech to the American Medical Assn., will host a healthcare town hall at the White House tonight, the second such event in the last two weeks.

And with help from the Democratic National Committee, Obama supporters plan to hold events around the country Saturday aimed at promoting his healthcare overhaul -- including blood drives, medical fairs and sessions on nutrition.

Fifteen years ago, the insurance industry was able to defeat President Clinton's healthcare proposal by playing on the public's fears with its "Harry and Louise" ad campaign, which featured a couple fretting about the government making their healthcare choices for them.

Now, Obama's campaign website is urging people to share stories about their own battles with the healthcare system and to send letters to members of Congress.

"We think there are powerful stories to be told that argue for healthcare reform," said Hari Sevugan, national press spokesman for the DNC. "Once you hear those stories, it demands reform this year."

The administration's push comes amid signs of division over Obama's plan among some Democrats on Capitol Hill.

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