Wednesday, August 19, 2009

Democrat Rift Threatens to Doom Barack Obama's Healthcare Reforms

TIMES ONLINE: After weeks of fierce protests against his plans to reform the US healthcare system, President Obama faced revolt inside his own party yesterday amid accusations that he was surrendering to its vociferous opponents.

The powerful liberal wing on Capitol Hill threatened to withdraw support for Mr Obama’s healthcare legislation if it did not include a government-run insurance programme — something he has appeared willing to abandon in recent days to try to garner Republican support.

However, fiscally conservative Democrats appeared increasingly opposed to the “public option”, leaving Mr Obama with the potential for a dangerous split in the Democratic Party that could doom the legislation.

The eruption of such a fight among Democrats underscored the huge challenge Mr Obama faces in getting legislation passed. It is the centrepiece of his domestic agenda and an issue on which he has spent enormous political capital.

Yet despite his efforts, voters are increasingly opposed to the idea of reform amid concerns about its huge cost.

For months Mr Obama has insisted that a government-run programme must be included in his effort to reform the health industry because it was the only way to give private insurance companies the competition needed to reduce soaring costs.

The scheme is opposed fiercely by Republicans, who claim it is too costly and will eventually lead to a solely government-run healthcare system. The conservative “Blue Dog” Democratic caucus in the House of Representatives is also unconvinced by the idea, and without its support the legislation could fail to pass the lower chamber.

In an effort to peel away more Republicans and assuage Blue Dog concerns, Mr Obama appeared to suggest at the weekend that a public option was not essential, describing it as only a “sliver” of his reform plans. His Health Secretary, Kathleen Sebelius, also hinted that the White House was open to dropping the idea.

The reaction from liberals was furious, with one Democratic congressman, Anthony Weiner, saying that without the option Mr Obama could lose 100 votes in the lower chamber, a reaction that would kill any Bill. Yesterday 60 House Democrats sent a letter to Ms Sebelius warning that without a government-run option the legislation would fail. >>> Tim Reid in Washington | Wednesday, August 19, 2009