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Democrats face mounting obstacles to health reform

Vice President Joseph R. Biden and HHS Secretary Kathleen Sebelius announce the hospital savings deal (image from whitehouse.gov)The battle to pass a comprehensive health reform bill this summer has tightened as conservative and centrist Democrats take issue with its staggering price tag - despite attempts by the White House to grease the skids for reform.

Earlier this week, Vice President Biden announced that three top hospital associations, including the AHA, had agreed to create $155 billion in Medicare and Medicaid savings over 10 years.

Physician groups including the AMA made a similar pledge to slash $300 billion in costs earlier this year.

These deals seem to be efforts by the administration to soften the blow of health reform's $1 trillion price tag, later amended to $600 billion in a revised bill.

Either figure, taken with the massive $787 billion stimulus package, provide Republicans with easy ammunition to attack Obama as a profligate spender.

Nevertheless, the greatest danger to a timely reform bill could come from within Democratic ranks. The Washington Post is reporting that Rep. Henry Waxman (D-Calif.), chairman of the House Energy and Commerce Committee and a key health reform player on the House side, disparaged the Biden agreement.

In the Post article, Waxman is quoted as saying "we're certainly not bound by that agreement. The White House was involved, and we were not."

Meanwhile, two public hospital systems that were apparently barred from talks with the White House "suggested the reductions ‘could severely damage' hospitals that serve the poor," the Post article notes.

Top Democrats planned to have a bill ready for Obama to sign by August, but the prospects aren't looking good. It'll be interesting to see how things pan out in the next four weeks...

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Reader Comments (2)

The student loans for many physicians exceeds $250K.

The federal government as well as the States have many programs already in place to serve the aged and low income groups.  Who will pay for this massive give away?  Trying to squeeze the hospitals and physicians for financial concessions to help offset the cost could cause those entities to try to cut services and thus provide less than optimum care.   Why would any bright young student choose a profession in health care?  When some family practice physicians leave medical school to enter the working world, they may owe in excess of $25K in student loans.  With shrinking incomes, those prospective students may lean towards a different career path or  degree with a more certain payback.

With huge ranks of unemployed, there are less and less working citizens to foot the bill. 

In additon , President Obama has a Robin Hood mentality that needs a reality check in terms of economics since the rich are those that create jobs in the first place. 

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