Obama prods Congress on healthcare; Senate panel acts

By Jackie Frank

WASHINGTON (Reuters) - Saying it was "time to get this done," President Barack Obama pressed Wednesday for swift congressional action on healthcare after a Senate panel approved a bill to overhaul the $2.5 trillion industry.

Panels led by his Democratic Party have stepped up activity on legislation that would meet Obama's goal of guaranteeing all Americans health care coverage, but they remain far from resolving the thorniest issue -- how to come up with about $1 trillion over 10 years in new taxes or savings to pay for it.

The first of five congressional panels to act, the Senate Health Committee approved on a 13-10 party-line vote legislation that would set up a government-run insurance program to compete with private insurers.

Obama praised the panel's action, but appealed to Americans to get involved, saying at the White House, "It's time for us to buck up Congress, this administration, the entire federal government, to be clear that we've got to get this done."

"This progress should make us hopeful, but it can't make us complacent," he said. "It should instead provide the urgency for both the House and the Senate to finish their critical work on health reform before the August recess."

The Senate bill would require most Americans to obtain health insurance and require employers of more than 25 workers to provide coverage or face a $750-per-worker penalty. Insurers could no longer bar people with pre-existing conditions. But, no one with insurance would be required to change insurers.

Health insurance reform is considered central to Obama's administration, building on his campaign pledge to expand coverage and control skyrocketing medical expenses, which are a burden on the federal government, businesses and individuals.

Most Americans have health insurance that is partially paid by their employers, but an estimated 46 million have no coverage. Insurers oppose the government-run health plan and say it would not lead to lower costs for consumers.

The National Federation of Independent Business, which worked to derail President Bill Clinton's reform push in the early 1990s, warned lawmakers the House bill would harm U.S. jobs and that it failed to meaningfully curb costs.

The trade group for small businesses called the employer mandate "punitive" and the tax "regressive" because it hits employers whether they have made a profit or not.

Some Republicans are trying to use the small business argument to defeat the Democrats' effort.

The senior Republican on the Senate health panel, Senator Mike Enzi, called the bill "a prescription for failure," and complained Republicans were shut out of the drafting process.

"If America is going to believe in what we do, this cannot be a bill just put together by one side."

In addition, the bill includes a provision sought by drug companies to give expensive biotechnology medicines protection from cheaper rivals for 12 years.

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