By Michael Bryan AP Wire as well as informal sources report that a budget deal has been struck between the Governor and the Legislature: the legislatures brutal program cuts in exchange for a November ballot on a 1 cent sales tax boost. Yay. There will be much more to say about this subject, but let … Read more

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Posted by AzBlueMeanie:

From Tuesday's White House Press Conference President Obama Holds Press Conference:

(Prepared Remarks)

The last issue I'd like to address is health care. Right now, Congress is debating various health care reform proposals. This is obviously a complicated issue, but I am very optimistic about the progress that they're making.

Like energy, this is legislation that must and will be paid for. It will not add to our deficits over the next decade. We will find the money through savings and efficiencies within the health care system, some of which we've already announced.

We will also ensure that the reform we pass brings down the crushing cost of health care. We simply can't have a system where we throw good money after bad habits. We need to control the skyrocketing costs that are driving families, businesses and our government into greater and greater debt.

There's no doubt that we must preserve what's best about our health care system, and that means allowing Americans who like their doctor and their health care plans to keep them. But unless we fix what's broken in our current system, everyone's health care will be in jeopardy. Unless we act, premiums will climb higher, benefits will erode further, and the rolls of the uninsured will swell to include millions more Americans.

Unless we act, one out of every five dollars that we earn will be spent on health care within a decade, and the amount our government spends on Medicare and Medicaid will eventually grow larger than what our government spends on everything else today.

When it comes to health care, the status quo is unsustainable and unacceptable. So reform is not a luxury. It's a necessity, and I hope the Congress will continue to make significant progress on this issue in the weeks ahead.

* * *

(Press Questions)

QUESTION: Thank you, Mr. President.

Two of the key players in the insurance industry, America's Health Insurance Plans and Blue Cross/Blue Shield, sent a letter to the Senate this morning saying that a government health insurance plan would, quote, "dismantle," end quote, private insurers.

QUESTION: Why are they wrong?

And, secondly, this public plan, is this non-negotiable? Would you sign a health care bill without it?

OBAMA: Well, let's — let's talk first of all about health care reform more broadly. I think in this debate there's been some notion that if we just stand pat, we're OK. And that's just not true.

You know, there are polls out that show that 70 percent or 80 percent of Americans are satisfied with the health insurance that they currently have.

The only problem is that premiums have been doubling every nine years, going up three times faster than wages.

The U.S. government is not going to be able to afford Medicare and Medicaid on its current trajectory. Businesses are having to make very tough decisions about whether we drop coverage or we further restrict coverage.

So the notion that somehow we can just keep on doing what we're doing, and that's OK, that's just not true. We have a long-standing critical problem in our health care system that is pulling down our economy. It's burdening families. It's burdening businesses. And it is the primary driver of our federal deficits. All right?

So — so if we start from the premise that the status quo is unacceptable, then that means we're going to have to bring about some serious changes. What I've said is our top priority has to be to control costs.

And that means not just tinkering around the edges. It doesn't mean just lopping of reimbursements for doctors in any given year because we're trying to fix our budget.

It means that we look at the kinds of incentives that exist, what our delivery system is like, why it is that some communities are spending 30 percent less than other communities, but getting better health care outcomes, and figuring out how can we make sure that everybody is benefiting from lower costs and better quality by improving practices. It means health I.T. It means prevention.

So all of these things are the starting point, I think, for reform. And I've said very clearly, if any bill arrives from Congress that is not controlling costs, that's not a bill I can support. It's going to have to control costs. It's going to have to be paid for. All right?

So there's been a lot of talk about, well, a trillion-dollar price tag. What I've said is, if we're going to spend that much money, then it's going to be largely funded through reallocating dollars that are already in the health care system, but aren't being spent well.

OBAMA: If we're spending $177 billion over 10 years to subsidize insurance companies under Medicare Advantage, when there's no showing that people are healthier using that program than the regular Medicare program, well, that's not a good deal for taxpayers.

And we're going to take that money and we're going to use it to provide better care at a cheaper cost to the American people. So, that's point number one.

Number two, while we are in the process of dealing with the cost issue, I think it's also wise policy and the right thing to do to start providing coverage for people who don't have health insurance or are underinsured, are paying a lot of money for high deductibles.

I get letters, two, three letters a day that I read, of families who don't have health insurance, are going bankrupt, are on the brink of losing their insurance, have deductibles that are so high that, even with insurance, they end up with $50,000, $100,000 worth of debt, are at risk of losing their homes.

And that has to be part of reform, making sure that, even if you've got health insurance now, you are not worried that, when you lose your job or your employer decides to change policies, that somehow you're going to be out of luck.

I think about the woman who was in Wisconsin that I was with, who introduced me up in Green Bay, 36 years old, double mastectomy; breast cancer has now moved to her bones. And she's got two little kids, a husband with a job. They had health insurance, but they're still $50,000 in debt.

And she's thinking, my main legacy, if I don't survive this thing, is going to be leaving $100,000 worth of debt.

So, those are the things that I'm prioritizing.