Washington: August 13, 2009 –IR Summary/NYT - President Obama has determined to put forward the broad principles in the area of health care system,  among them is the creation of a strong, government-run insurance plan to compete with private insurers and press for lower costs,;his team is working hard to achieve the results desired by the President, by negotiating deals with utmost wisdom and care.

As per NYT, the hospital officials last month were poised to appear at the White House to announce a deal limiting their industry’s share of the costs of the overhaul proposal when a wave of jitters swept through the group. Senator Max Baucus, the Finance Committee chairman and a party to the deal, had abruptly pulled out of the event. Was he backing away from his end of the deal?

Not to worry, Jim Messina, deputy White House chief of staff, told the lobbyists, according to White House officials and lobbyists briefed on the call. The White House was standing behind the deal, Mr. Messina said, capping the industry’s costs at a maximum of $155 billion over 10 years in trade for its political support.

Some Democrats and industry lobbyists now argue that, in negotiating deals through Mr. Baucus’s panel with powerful health care interests, the White House was tacitly signaling as early as last spring that it might end up accepting something more modest than the government insurer the president has said he prefers.

The Finance Committee, for example, appears to be coalescing around the idea of nonprofit insurance cooperatives instead of a government-run plan. It is a proposal the health care industry prefers, but many liberal Democrats oppose, in both cases because cooperatives are likely to have less leverage over health care prices.

Rahm Emanuel, the White House chief of staff, disputed that the administration had elevated the work of the Senate finance panel above the four other committees that have all approved strong government insurers.

“They are an important committee,” Mr. Emanuel said. “They have a bipartisan process. The president would like that to work, just as he is proud that the other committees have done their work. They don’t get an exalted status over everybody else.” More