With Congress working to flesh out controversial elements of his healthcare reform plan, U.S. President Barack Obama will make his case to the nation’s doctors on Monday for a new public insurance program, seeking to overcome their resistance.

Obama, in a speech to the American Medical Association, will “lay out his vision for a system that replicates best practices, incentivizes excellence and closes cost disparities - and he’ll ask for our medical professionals’ help in getting the job done,” an administration official said.

Speaking to the doctors’ group’s annual meeting in Chicago, Obama will make his case for “a health insurance exchange where private plans compete with a public option that drives down costs and expands choice,” the official said.

In a move that could appeal to doctors and Republican skeptics of his healthcare overhaul ideas, Obama privately has been making the case for taking action to help protect doctors from malpractice lawsuits, the New York Times reported on Monday.

The Times quoted an unnamed Democrat described as close to the president as saying Obama views addressing medical liability issues as a “credibility builder” and an issue that might keep the nation’s doctors as well as Republicans at the negotiating table over his broader healthcare overhaul goals.

The Times reported that Obama likely would refer to the lawsuit reform issue in his speech to the AMA but would not offer any specific proposal. The doctors’ group and many Republicans want to limit malpractice jury awards.

The newspaper noted that doctors complain that “defensive medicine” - ordering tests and procedures out of fear of being sued if they do not - drives up health costs.

DEBATE SHARPENS

The president’s speech to the AMA comes as debate sharpens over elements of the sweeping healthcare overhaul being drafted by Congress, including how to pay for the plan and whether it should include a public insurance program to compete with private insurers.

The U.S. healthcare industry costs about $2.5 trillion annually but leaves 46 million Americans uninsured and with little access to medical care. Despite the cost, the U.S. system consistently ranks worse than other developed countries on many key measures.

Obama says a public insurance plan is needed to compete with private insurers to drive down costs, but some Republicans say a public plan would have competitive advantages that would ultimately drive private insurers out of the market.

The AMA has expressed skepticism about any public insurance plan that would be similar to the Medicare program for the elderly. But the group said last week it was willing to consider other public options being considered by Congress, including member-owned cooperatives.

“Health reform that covers the uninsured is AMA’s top priority this year,” AMA President Nancy Nielsen said in a statement. “Every American deserves affordable, high-quality healthcare coverage.”

Health and Human Services Secretary Kathleen Sebelius, in a television news show appearances on Sunday, defended the president’s push for a public insurance option.

“The president feels that having a ‘public option’ side by side - same playing field, same rules - will give Americans choice and will help lower costs for everybody. And that’s a good thing,” Sebelius told CNN.

“The president does not want to dismantle privately owned plans,” she added. “He doesn’t want the 180 million people who have employer coverage to lose that coverage. He wants to strengthen the marketplace.”

But many Republicans oppose a public plan and say there is not enough support in Congress to approve approve. The idea of a system of federally chartered insurance cooperatives has emerged as an alternative to a public plan.

By David Alexander
WASHINGTON (Reuters)