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Kansas Gov. Kathleen Sebelius (R) speaks after U.S. President Barack Obama announced her as his choice for Secretary of the Department of Health and Human Services in the East Room of the White House March 2, 2009 in Washington, DC. (Chip Somodevilla/Getty Images)
WASHINGTON—President Barack Obama named Kansas Governor Kathleen Sebelius Monday to lead his ambitious health reform effort, kicking off a week focused on revamping an inefficient healthcare system whose cost he fears is hurting the U.S. economy.
Obama also named former Clinton administration health official Nancy-Ann DeParle to serve as head of the newly created White House Office for Health Reform, which will help coordinate Obama's health reform agenda with Congress.
"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 is wrong with our healthcare system is no longer just a moral imperative, but a fiscal imperative," Obama said in announcing the appointments.
Sebelius, a former state insurance commissioner, is noted for trying to reach across the political divide as a Democratic governor in a conservative and Republican state—skills she will need to tackle one of the most ambitious undertakings of the new administration.
"We can't fix the economy without fixing healthcare," Sebelius told reporters after Obama's introduction. "This isn't a partisan challenge. It's an American challenge and one that we can't afford to ignore."
DeParle handled budget matters for federal healthcare programs during President Bill Clinton's administration as well as the job of managing the Medicare and Medicaid health programs for retirees and the poor, which could be building blocks for a new system.
Obama's healthcare push was stymied when his first nominee for the cabinet health job, former Senate Democratic leader Tom Daschle, withdrew after admitting he had paid $140,000 in back taxes and fines after being tapped for the post.
Obama has set goals of expanding healthcare to 46 million uninsured Americas, easing the burdens of insurance costs to employers and paying for it with new taxes, and streamlining operations of the medical system.
On Thursday, the White House will host a healthcare summit, with sessions among health insurers, members of Congress and lobbyists for groups ranging from the drug industry to employers. While the guest list has not been published yet, White House officials have indicated a broad range of expertise will be represented.
There is wide agreement the U.S. healthcare system needs change, and some unusual alliances have arisen — with retail giant Walmart, for example, joining labor unions.
Drug companies also support reform but not at the cost of sharply lower prices, and Obama has not indicated he would press a so-called "single-payer" option that would change the face of the health insurance industry.
The Backlash Begins
Obama is getting a backlash from Republicans, who have not embraced his plans to move the U.S. agenda sharply to the left and nudge healthcare out of the control of various private interests.
"The era of big government is back," House Republican Leader John Boehner said last week after Obama released his new budget proposal, which put an emphasis on healthcare reform.
In his campaign, Obama promised to extend health insurance coverage to more Americans, although he has said little about how he plans to do this. He indicated he would set a broad agenda and let Congress handle the details.
Most of his own power would lie in using Medicare as a catalyst, either by expanding the giant federal health insurance plan for the elderly and disabled, or by making changes that private insurers would be likely to follow.
Obama's budget last week highlighted a $634 billion "reserve fund" to pay for 10 years of changes in healthcare, ranging from new computer-based initiatives to a program to send nurses to the homes of new mothers.
Sebelius has some experience in trying to find ways to pay for expanding healthcare — she failed to persuade the Republican-led Kansas legislature to raise tobacco taxes to pay for expanded government health insurance there.
But at her urging, Kansas is working to let residents buy cheaper prescription drugs from state-approved pharmacies in Canada and Europe.
