Obama reiterates interest in keeping insurance companies ‘honest’

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As members of the U.S. House and Senate continue to debate various aspects of health care reform, President Barack Obama is reiterating his belief in a public insurance plan to compete with private insurers.

Barack Obama

Barack Obama

During his trip to Russia, Obama told reporters he is “pleased” by the progress his administration and others are making on health care reform.

“And [I] still believe, as I’ve said before, that one of the best ways to bring down costs, provide more choices, and assure quality is a public option that will force the insurance companies to compete and keep them honest,” Obama said. “I look forward to a final product that achieves these very important goals.”

The statement echoes his comments at a press conference June 23 when he called a possible government-run insurance program “an important tool to discipline insurance companies,” and that private insurers should not worry about a public option if they are truly doing what is best for their customers.

Obama’s latest remarks came on the same day the Wall Street Journal ran an interview with White House Chief of Staff Rahm Emanuel, who said the administration is open to a deal on a public health plan.

“The goal is to have a means and a mechanism to keep the private insurers honest,” Emanuel said in the interview. “The goal is non-negotiable; the path is negotiable.”

Published reports indicate that while the proposed public option could be a stumbling point for support among some legislators on Capitol Hill, a much-discussed tax on health insurance benefits is the latest issue dividing Democrats.

Sen. Max Baucus (D-Mont.), one of the leading voices in the health care reform effort, told Reuters he would consider the tax to help pay for reform efforts that could cost nearly $1 trillion.

“I think that tax provision should be on the table,” Baucus said, adding that such a tax is “too aggressive” and “skews the system.”

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