President Barack Obama took another step forward in his pledge to expand health care coverage for all Americans by nominating Kansas Gov. Kathleen Sebelius to head the U.S. Department of Health and Human Services to oversee that process.

It is Obama’s second nomination to the post, after former Sen. Tom Daschle backed out over tax issues in early February, Sebelius’ nomination is getting a favorable reaction from those in the insurance industry.

Kathleen Sebelius

“Kathleen Sebelius has a remarkable intellect, unquestioned integrity and the kind of pragmatic wisdom you’ll tend to find in a Kansan,” Obama said at a press conference on Monday (March 2). “I know she will bring some much-needed grace and good humor to Washington, and she will be a tremendous asset to my cabinet.”

The announcement comes on the heels of a health reform summit to be hosted at the White House this week and following the president’s $634 billion “down payment” on reform measures in his budget recently delivered to Congress. It comes on top of billions more for health care reform, including a network for electronic medical records, through the $787 billion American Recovery and Rehabilitation Act.

Both are seen by many as initial moves to institute universal health care in the United States, a task Sebelius will be charged with, if approved by the Senate.

Sebelius served as Kansas’ insurance commissioner from 1994 to 2002, helping to draft a proposed national bill of rights for patients and blocking a BlueCross BlueShield move that would have raised premiums. She also served as president of the National Association of Insurance Commissioners (NAIC).

Sebelius, a Democrat, has served as the governor of Kansas, a largely Republican state, since 2003. Some considered her as a strong contender as Obama’s selection as vice president during the 2008 election. Obama praised her ability to work with both Democrats and Republicans, a skill that may come in handy as Congress works through the president’s health care agenda.

Obama also announced his choice to lead the White House Office for Health Reform, former commissioner of the Tennessee Department of Human Services, Nancy Ann DeParle. The president noted her experience watching the impact of the U.S. health care system on families and workers in that role and her experience as an administrator with the Centers for Medicare and Medicaid Services and as an associate director for health and personnel with the White House budget office under the Clinton Administration.

During his introduction of both women, Obama also disclosed that $155 million from the

will support 126 new health centers across the country, expanding care to 75,000 Americans and creating 5,000 jobs.

“If we are going to help families, save businesses, and improve the long-term economic health of our nation, we must realize that fixing what’s wrong with our health care system is no longer just a moral imperative, but a fiscal imperative,” Obama said. “Health care reform that reduces costs while expanding coverage is no longer just a dream we hope to achieve – it’s a necessity we have to achieve.”

Karen Ignagni, president and CEO of America’s Health Insurance Plans, applauded both new members of the president’s health care reform team.

“Governor Sebelius is the right person to move the President’s health care agenda forward,” Ignagni said in a statement. “She is a proven leader with extensive knowledge of health care issues and a long history of working effectively across the political aisle.  As a former CMS administrator, Nancy-Ann DeParle brings considerable experience and a strong track record working on all of the health care issues facing the nation.”

Ignagni said that reforming the nation’s health care system “requires strong leadership and a commitment by all stakeholders to be a part of the solution.”

” Health plans are committed to doing our part by offering proposals that ensure every American has high-quality, affordable health care coverage,” she said.

New Jersey Governor Jon Corzine also applauded the selection of Sebelius, calling her “an excellent choice” who will “no doubt provide strong leadership in an area that is one of the administration’s top priorities.”

“She has the right perspective on the issues vital to states, including the children’s health insurance program, and I am confident she will shine as Secretary of Health and Human Services,” Corzine said in a statement. “I have had a long working relationship with Governor Sebelius and I look forward to working with her further to bring health care to the residents of New Jersey.”