Feeds: 
symbol identifies content for paid subscribers only.
PETER ORSZAG'S REMARKS FROM THE FISCAL SUMMIT.
In my column today, I argue that Peter Orszag has proven the key figure in transforming fiscal responsibility from an obsession with entitlements to a focus on health reform (I even reprint his graphs). His introductory remarks at the White House's Fiscal Summit show why:
In charting a new fiscal course, we need to be clear in diagnosing the problem. The single most important thing we can do to improve the long-term fiscal health of our nation is slow the growth rate in health care costs. Health care is the key to our fiscal future.
So to my fellow budget hawks in this room and in the rest of the country, let me be very clear: health care reform is entitlement reform.
The path of fiscal responsibility must run directly through health care.
We also must recognize that reforms to Medicare and Medicaid will only succeed in the context of slowing the spiraling growth of overall health care costs.
Improving the efficiency of the health system -- so that we get better results for less money -- is therefore not just or even primarily a budget issue.
Health reform would also provide direct help to struggling families, since health care costs are reducing workers’ take-home pay to a degree that is both under-appreciated and unnecessarily large.
And for many states, health care is increasingly crowding out other priorities -- such as support for higher education, which in turn had lead to higher tuition and painful cutbacks at state universities.
All of this is why the President has said time and again that he is committed to reforming our health care system this year.
Orszag, by the way, was the only administration member aside from the President and the Vice President who spoke at today's fiscal summit. This, in other words, is not just Orszag's message. It's the White House's message.
Full speech below the fold.
Related: How Entitlement Reform Became Health Care Reform.
• The Orszag profile.
OMB Director Peter R. Orszag Urges that Fiscal Reform Start Now
White House Summit First Step to Long-Term Fiscal Health
“Our nation is being forced to grapple with a pair of trillion-dollar deficits: one is the trillion-dollar deficit between what the economy could be producing each year and what it is producing; the other is the trillion-dollar budget deficit that this Administration inherited.
The first deficit – the trillion dollar income gap this year -- is an urgent crisis. The longer it persists, the more jobs that are lost, the more businesses that are closed, and the more income loss that families suffer. The Recovery Act that was enacted earlier this month helps to address that crisis – jumpstarting the economy and creating or saving 3.5 million jobs.
The second deficit -- the budget deficit -- may be somewhat less urgent, but it’s no less important. Over the medium to long term, the nation is on an unsustainable fiscal course. To be responsible, we must begin the difficult process of fiscal reform now.
That’s why the President convened this summit today: because we can no longer let the urgent get in the way of the important. No longer can we put off the tough choices we must make to address our budget deficits.
In charting a new fiscal course, we need to be clear in diagnosing the problem. The single most important thing we can do to improve the long-term fiscal health of our nation is slow the growth rate in health care costs. Health care is the key to our fiscal future.
So to my fellow budget hawks in this room and in the rest of the country, let me be very clear: health care reform is entitlement reform.
The path of fiscal responsibility must run directly through health care.
We also must recognize that reforms to Medicare and Medicaid will only succeed in the context of slowing the spiraling growth of overall health care costs.
Improving the efficiency of the health system -- so that we get better results for less money -- is therefore not just or even primarily a budget issue.
Health reform would also provide direct help to struggling families, since health care costs are reducing workers’ take-home pay to a degree that is both under-appreciated and unnecessarily large.
And for many states, health care is increasingly crowding out other priorities -- such as support for higher education, which in turn had lead to higher tuition and painful cutbacks at state universities.
All of this is why the President has said time and again that he is committed to reforming our health care system this year.
With his leadership and the hard work of everyone in this room, we can reform health care, start to bend the curve of long-term costs, and get our economy on a path of long-term growth.”
COMMENTS (8)
What did other participants have to say? Is this "entitlement reform is health care reform" theme a bit of successful Obama admin jujitsu?
Posted by: bdbd | February 23, 2009 5:00 PM
As step one in a plan to work on health care reform, I'd say the speech is great. And I'd say that "entitlement reform is health care reform" is also a great rhetorical device to take Social Security off the table, and leave Republicans scrambling to get up to speed, since they've got next to nothing in this regard, except denial.
Still, I think the question that follows is... control health care costs, how? Agreeing to Orszag's general approach is easy, the question that almost every health policy person has struggled with is what follows from it - insurance reform, even universal coverage - as wisewon reminds us endlessly - won't control costs, alone. And other changes - reimbursement rates, or changing the whole concept of fee for service - are hard ideas, as yet unsold, and bound to raise new objections (especially by hospitals, and then by docs). Still, this is a great way into the discussion (which, I think is fast becoming the real strength of the Obama team - framing the issues smartly and accurately)... it's just that the actual discussion - and the choices that follow from it - are the hard part. I've yet to see this Administration as truly strong at the hard part.
Posted by: weboy | February 23, 2009 5:36 PM
In DC (and the media) a oft-repeated mantra, even if it isn't factual or true (like the cutting taxes will raise fed. income GOP mantra), can become the game changer.
Obama/Orszag seem to believe in this magic elixir, and I guess I do too. It may be enough to get healthcare restructuring on the way, but that will raise the premium on getting it right so that costs/capita do start to bend.
Just like the stimulus, the dosage has to be correct on healthcare restructuring (a term I like better than reform) Too low a dose, and the drug doesn't work. Too high a dose and the patient likely gets killed.
I'm afraid we may get the pack moving in the correct direction but without enough propulsive force to make a difference. The force of gravity is likely to be stronger than estimated.
This time, we'd better not give away through pre-negotiation bi-partisanship half of the pony and think it will get us to the destination. Obama needs to sound stubborn and determined through the early stages and save the negotiation give-backs for the final strokes.
Posted by: JimPortlandOR | February 23, 2009 5:43 PM
After the mediocre Clinton years, and the absolutely pathetic Bush years, there just isn't that much trust between the establishment and the base. Obama can only polish the Establishment so much before it starts to tarnish him.
As long as these folks keep the actual details secret, and stick to broader points, it's really hard to take them at their word. These same folks promised NAFTA would be a great boon to Americans as a whole, and promised all sorts of additional reforms to make it such. They never delivered. There is no reason to think this health reform talk isn't there to try and placate us as they gut social security.
Posted by: soullite | February 23, 2009 5:52 PM
Let me add to my comment by saying that Obama may have to scare his opponents a bit by explicitly leaving on the table some things which are only marginal thoughts for Obama/Orszag. Things like single-payer, Medicare for all, VA-like hospitals, no private basic health insurance (only extended coverage allowed). Then when the faces are red in the deal room, some or all of the bad stuff (from the GOP/Conservative view) can be traded away for reasonableness on progressive features.
I agree with webboy that the framing from Obama team is pretty good (except on the bank solvency issue), but we have yet to find out if Obama can be an asshole negotiator when needed to focus opposition on compromise.
Posted by: JimPortlandOR | February 23, 2009 5:54 PM
I think I'm in love...
This is the kind of thoughtful, insightful analysis that I only hear from Ezra - never even from a mainstream media source, let alone the White House!
Posted by: Terry | February 23, 2009 7:04 PM
GREAT Ugg BOOTS THANK YOU QUICK SERVICE.
Posted by: efef | November 2, 2009 6:22 AM
The hot-sale Ugg Boots are coming now.We offer wide range of colors and styles ugg boots uk and Ugg Boots Sale for you.Shopping now for your favorite!
Posted by: ugg boots sale | December 19, 2009 2:23 AM