Obama hits the road

President Obama

In an attempt to drum up last-minute support for his healthcare bill, President Barack Obama has taken to the road to secure votes. The outcome of the vote, which Obama wants passed by the middle of next week, could determine the future of his presidency. Obama hopes to sign both additional economic stimulus plans and a comprehensive health care bill within the next two months.

White House officials are trying to rally public support for the biggest changes to US healthcare in 45 years. The effort was on the brink of failure just a few weeks ago and still faces opposition from Republicans and some Democrats.

"How much higher do premiums have to rise until we do something about it?" Obama said in his speech at Arcadia University. "It's time to make a decision."

The White House is seeking passage of a health overhaul that stalled after Democrats lost a US Senate race in Massachusetts in January. The administration wants the House to pass a Senate-approved measure by 18 March, but it is unclear if the bill has enough support among Democrats.

Independent commission

Many healthcare economists believe there are elements of the 2700-page healthcare bill which could make the difference between US bankruptcy and solvency in coming decades.

Of these, the creation of an independent commission to set payments for Medicare, the expensive healthcare system for pensioners, is probably the most radical. US entitlement spending is forecast to account for the entire US budget by the middle of the century. Of this, Medicare is by far the largest item. Under the bill, a new Medicare commission, known as the Independent Payments Advisory Board, would have the power to impose steep annual cuts in Medicare payments against forecast healthcare inflation, the Financial Times reports.

"History suggests that if you phase something in, it works," Peter Orszag, Obama's budget director, told the Financial Times. "The commission would have the power to propose changes to hit the growth targets for healthcare spending, which would take effect unless Congress enacts alternative proposals with equivalent savings. I don't think people have appreciated just how big a game changer this could be."

Over time, a fully empowered board could help transform a chronic fiscal challenge. Government spending accounts for half of the annual $2500 billion health spending, of which Medicare is by far the largest portion.

Obama says his bill would extend coverage to some 31 million Americans who now lack health insurance and would prohibit insurers from denying coverage to people who are sick.

Jodie Humphries

Jodie Humphries graduated from Bath Spa University with a BA Hons in Creative Writing in 2008. She has worked for GDS Publishing for the digital group since July 2009. She has previous experience with writing for the web, running her own website since April 2007.

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