Obama: Health Care Reform Will Impact All Americans

When Debby Smith was diagnosed with a second tumor in her kidney, causing her renal failure, she had no way to pay for health care. So she turned to President Obama.

The president comforted the tearful questioner at the health care town hall meeting he held Wednesday at Northern Virginia Community College in Annandale, Va.

"Debby is a perfect example of somebody, in a country this wealthy, we should be able to provide coverage for her health care problems," Mr. Obama said, after hugging Smith. "What we don't want is a situation where Debby gets worse and worse because she's not getting treatment and then goes to the emergency room," raising costs for all taxpayers.

Health care reform will impact every American, the president said.

"If we do not act to bring down costs, everybody's health care will be in jeopardy," he said. "We've got to stop clinging to a broken system that doesn't work."

Mr. Obama repeated his previous assertions that two thirds of his reform proposals could be paid for by re-allocating money already in the system, while one third would be paid for by raising revenues. He indicated he is more open to the idea of taxing health care benefits than he has been in the past.

While Mr. Obama on the campaign trail opposed Sen. John McCain's proposal to eliminate the current tax exclusion for employer-based health benefits, the president pointed out that the debate in Congress is currently about capping -- not eliminating -- the exclusion. For instance, someone with a $17,000 plan may have to pay taxes on the last $4,000.

"This is something that's going to be debated in the House and the Senate," he said. "My bottom line is if you've got health insurance right now, you shouldn't suddenly see your costs go up because of health care reform."

Mr. Obama said as he has before that he would prefer to raise revenues by capping the itemized tax deductions wealthy Americans can make.

The president said the most important thing Americans can do to move health care reform forward is stay informed

"I want everybody to be well enough informed so the scare tactics of those who oppose reform don't work," he said. "When you hear somebody say Obama is proposing a government takeover of health care... I actually think reforming the system is the most likely way for you to keep the health care you've got."

He said that the pressure regular Americans can put on Congress will be effective.

"Those who said we couldn't do it, they're already being surprised," he said, citing examples of progress made so far such as the pharmaceutical industry's agreement to cut the cost of prescription drugs for seniors.

"I am very pleased the drug companies decided to cough up $80 billion to close up this doughnut hole," he said, referring to the gap in coverage the industry has agreed to help pay for.

He added, however, "Were it not for the prospect of serious health reform, they would not have given up that money -- that's just my guess."