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Sebelius Voices Support For Public Health Plan Option Before HELP Committee

This article was originally published in The Pink Sheet Daily

Executive Summary

HHS Secretary-designate Sebelius does not want to see employer-based health care system dismantled, but supports a public option to compete for beneficiaries in a health exchange system.

HHS Secretary-designate Kathleen Sebelius came out in favor of having a government-run health care program during the first of two confirmation hearings in the Senate March 31.

After circling around questions posed by Senate Health, Education Labor and Pensions Committee member John McCain, R-Ariz., Sebelius finally admitted: "If the question is do I support a public option side-by-side with private insurers in a health insurance exchange, yes I do."

Sebelius was testifying in front of the committee during a hearing that was billed to be a part of the Senate confirmation process. She will appear before the Senate Finance Committee, which is the committee with jurisdiction to determine whether to send her nomination onward to the full Senate for approval, on April 2.

The creation of a public plan has become a key partisan issue in the overall health care reform debate, with Democrats holding onto the idea to use as a bargaining chip. Senate Finance Committee Chairman Max Baucus (D-Mont.) recently suggested that as long as it is on the table, it will help to spur negotiations to help find a solution to health care reform that is uniquely American (1 (Also see "Baucus’ Warning: Pass Health Reform This Year Or Wait 10 More Years" - Pink Sheet, 27 Mar, 2009.)).

And while the endorsement of a public plan option likely will not score points with Republicans in Congress, Sebelius throughout the hearing promoted her bipartisan credentials, noting that she is a Democratic governor in the predominantly Republican state of Kansas. She committed to bringing her experience working across the aisle to the HHS secretary position, if she were confirmed.

Sebelius was formally introduced March 2 as the nominee in the wake of Tom Daschle's withdrawal from consideration amidst tax issues (2 (Also see "Clinton Veteran DeParle Brings Medicare, Budget Pragmatism To White House" - Pink Sheet, 2 Mar, 2009.)).

-Gregory Twachtman ([email protected])

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