• Protecting Yourself Online

    Cammie Croft
    October 15, 2009
    04:55 PM EDT

    To help raise awareness among all Americans of online threats, October has been designated National Cybersecurity Awareness Month and we’ve exposed some of the most common cyber threats in previous blog posts.  President Obama continues these efforts in the video below by explaining the importance of cybersecurity and strategies you can take to protect yourself online. To learn more about the strategies mentioned in the video, visit OnGuardOnline.gov and DHS.gov/Cyber.
    Viewing this video requires Adobe Flash Player 8 or higher. Download the free player.
    download .mp4 (40 MB)

  • Word from the White House: Another Day, Another Self-serving Analysis from the Insurance Industry

    Jesse Lee
    Jesse Lee
    October 15, 2009
    04:47 PM EDT

    It's no secret that institutions of all stripes focus their communications on certain messages day to day. We thought it would all be a little more open and transparent if we went ahead and published what our focus will be for the day, along with any related articles, documents, or reports.

    Supporting article: "Yes, It's Another Fishy Insurance Study," The New Republic, 10/14/09

    Talking Points: Blue Cross Blue Shield Report

    • Another day, another self-serving and deeply flawed analysis from the insurance industry.
       
    • Like the AHIP report from earlier this week, the Blue Cross Blue Shield report is hard to take seriously.
      • It comes at a time when we’re closer than ever to reform that will rein in some of the industry’s worst practices.
      • And it ignores critical provisions included in the Senate Finance Committee bill.
         
    • The reality is that the Congressional Budget Office and other independent analysts confirm that the current Senate Finance Committee health reform proposal will lower health care premiums in the exchange and make health insurance more affordable for families.
      • MIT Economics professor Jon Gruber recently conducted analyses based on the non-partisan Congressional Budget Office model to show that the bill will deliver savings for people purchasing health care in the nongroup insurance market, ranging from several hundred dollars for the youngest consumers to over $8500 for families.
      •  
    • In order to reach the skewed conclusion it was looking for, the Blue Cross Blue Shield selectively ignores key provisions including:
      • The impact that tax credits provided in the bill would have on out-of-pocket costs.
      • Special policies for young adults, who BCBS claims will be hit hard, including premium credits and the choice of a special "young invincibles" plan that has a low premium.
      • Benefits of risk pooling and increased administrative efficiencies of an exchange, which the non-partisan CBO says will reduce premiums.
      • Investments in prevention, reducing waste, and other policies that independent analysts say will help bend the long-term health cost curve.

  • The Open Internet Blog

    Julius Genachowski
    Julius Genachowski
    October 15, 2009
    04:28 PM EDT

    Cross-posted from OpenInternet.gov/blog.

    The Internet's open architecture has enabled this network of networks to become a unparalleled platform for innovation and speech, as well as an enduring engine for economic growth. Last month, I proposed that the FCC adopt a fair and high-level framework to preserve an open Internet. While my goals are clear, the path to achieving them involves many hard questions about how best to maximize the innovation and investment necessary for a robust and thriving Internet. Getting input from all stakeholders will be important as the Commission begins to address many critical questions. That is why we launched OpenInternet.gov. We wanted to create a place where people could join the discussion about the open Internet. While OpenInternet.gov is still in Beta, we are encouraged that thousands of visitors have already used the site to watch my speech proposing open Internet principles and more than 500 people have offered comments.

    Today, we are expanding the ways people can use OpenInternet.gov to participate in this discussion by launching the site’s blog. Visitors to this blog will be able to find expert commentary from FCC staff on how best to preserve the Internet’s openness and questions that arise during this debate. Our staff hopes to use this forum not only to share ideas but also to receive them. We encourage all visitors to weigh in with their own thoughts and engage in an open dialogue.

    The blog will also offer timely information on the FCC's latest activities to preserve an open Internet. On that front, we have an important announcement to make. Next Thursday, October 22, my fellow Commissioners and I will be hosting a meeting at the FCC’s headquarters to begin the process of establishing rules to preserve the Internet's openness. These proceedings will be open to the public and streamed live on this site. Please check it out, and let us know what you think.

    This blog is just the latest piece of an agency-wide effort to engage the public. We hope you will take advantage of it and keep coming back.  Come by and let us know what you think.

    Julius Genachowski is the Chairman of the Federal Communications Commission

     

  • Serious Questions on Regulatory Reform from Consumers, Fools, Yahoos and Moms

    Katie Stanton
    October 15, 2009
    04:19 PM EDT

    Last week, President Obama renewed his push for Financial Regulatory Reform. The goal of Regulatory Reform is to protect American consumers from abuse and set clear rules of the road for the financial industry. Reform will help prevent another financial crisis like the one we saw over the past year and will ultimately restore responsibility and accountability to our financial system.

    In the wake of the President’s remarks, we reached out to four websites dedicated to stakeholders in financial regulatory reform: investors, consumers and moms. After spending time getting a sense for the thoughts and questions among their readers, the editors of these websites sent in questions or came themselves to interview senior policy officials at the White House.

    First, the Motherhood collected a wide variety of questions from the "mommy blogger" community for Christina Romer, the Chair of the Council of Economic Advisors, and mother of three. Many of the questions revolved around how reform will help with family finances including paying for college and paying mortgages. A summary of all of the questions and the video clip can be found on the Motherhood.

    Romer also answered questions from Yahoo Finance. She said President Obama is fully committed to this as a central part of his agenda, and that it will serve consumers well and help people make better financial decisions. Watch more of the interview here.

    One of the founders of The Motley Fool, another online finance site, interviewed Austan Goolsbee from the Council of Economic Advisers. Over 400 comments were submitted by "Fools" (as the community is named ), including questions about how reform will provide for accountability, responsibility and effective enforcement. The Fool has a summary of the interview including a video on their site.

    Motley Fool intervies Austan Goolsbee from the Council of Economic Advisers.

    And finally, the Consumerist interviewed Diana Farrell from the National Economic Council. The Consumerist collected questions from their readers, including:

    "I agree with the need to reform the current financial regulatory system. Besides the high level plan of consolidating consumer protection power into one agency, what actions do you believe hold the most promise of achieving this reform quickly, effectively, and with minimum cost and effort?" – "opticnrv"
    "Will the CFPA have any actual legal authority to investigate and prosecute companies or individuals that violate its tenets?" – parvax

    The Consumerist interviews Diana Farrell from the National Economic Council.

    To see what Farrell had to say on these questions and others, check out the video at the Consumerist.

    We enjoyed this new way of engaging with citizens and communities online to sort through what can seem like a complicated issue, and thanks to everybody who took part.
     

  • The Pedometer Challenge

    Peter Orszag
    Peter Orszag
    October 15, 2009
    03:37 PM EDT

    On October 1st, OMB kicked off the Pedometer Challenge, a voluntary effort to boost OMBers’ physical activity and improve our health.  We made pedometers available to all OMB employees to give them a tool to track their steps, increase their physical activity, and make strides towards reducing their stress levels and improving their overall health. In just two weeks, OMB's highest stepper has taken 359,632 steps so far and I'm happy to report that I've taken 179,724 steps. I thought I'd be hard to beat since I like to go for a run every day, but I am currently ranked 49th of the 233 active participants.
     
    The OMB Pedometer Challenge is more than a contest: it's an intervention backed by evidence. Studies show that pedometers are proven to be one of the most cost-effective ways to increase physical activity. According to a study in the Journal of the American Medical Association (JAMA), the use of a pedometer caused participants to increase physical activity by as much as 27 percent — increasing average daily steps by over 2000 steps per day.  A second study suggests that pedometers are one of the most cost-effective interventions for increasing physical activity.
     
    Although there is serious evidence behind the Pedometer Challenge we had a bit of fun with it:

    download .mp4 (37 MB)

  • Why American Families and Businesses Need Financial Reform

    Lawrence H. Summers
    October 15, 2009
    09:58 AM EDT

    This week, the House Financial Services Committee began its formal deliberations regarding the President's financial reform plan.  This is a crucial piece of President Obama's agenda for change and something you will be hearing much more about in coming weeks.  Yesterday, we held a meeting at the White House with stakeholder groups to discuss the importance of passing financial reform.  We hope you'll take a moment to look through the materials from that meeting below, and we will post the video of the meeting later once it is ready.

    Financial Regulatory Reform: A New Foundation

     

    Why is financial reform so important for middle class families?

    Over the past two years, the American people have experienced the worst financial and economic crisis since the Great Depression.  From the time the recession began in December 2007, 7.6 million Americans have lost their jobs.  During the last few months of 2008 alone, over $5 trillion of household wealth was destroyed.  The aggressive actions by the Obama Administration have since pulled us back from the abyss, but the prospects for continued free fall were very real.

    Despite the extraordinary depth of this most recent crisis, the pattern it followed – a pattern in which instability emanating from the financial sector ultimately resulted in hundreds of thousands of middle class families who had nothing to do with the financial sector losing their jobs or much of the their savings – is disturbingly familiar:

    • The Latin American debt crisis of the early 1980s
    • The stock market crash of 1987
    • The savings and loan debacle of the late 1980s
    • The Mexican financial crisis of 1994
    • The Asian financial crisis of 1997
    • The bursting of the dot-com bubble
    • The collapse of the hedge fund LTCM in 2000
    • The fraud and bankruptcy at Enron
    • And now the financial crisis that began in 2007

    All too often, a financial system that is intended to manage, distribute, and control risk has, in fact, acted as a source of risk.  Risk that has resulted in severe consequences for millions of taxpayers, consumers, and investors through little fault of their own.

    To protect American consumers from abuse and to set clear rules of the road for Wall Street that will help prevent another financial collapse, President Obama has made financial reform a critical priority of his Administration.  His proposals include:

    • Raising capital requirements
    • Eliminating a system where financial institutions can choose who regulates them
    • Imposing rigorous standards and supervision to protect the economy and investors, and
    • Establishing resolution authority to ensure that no financial institution is too big to fail

    But among the President’s proposals, the greatest opposition from Wall Street has been reserved for the proposal to create, for the first time in American history, a unified, independent agency with just one mission: To protect the American consumer from fraud and abuse and ensure that people get the clear information they need about loans and other financial products.

    As the President made clear at the White House last Friday, the Consumer Financial Protection Agency "will be charged with setting clear rules of the road for consumers and banks, and it will be able to enforce those rules across the board."  It will take on the old ways of treating consumers: predatory lending, inappropriately high credit card rates, and exploitative overdraft fees.

    The time has come for a fundamental change in the financial sector of our economy – both in how financial institutions conduct their business and, especially, in how they are regulated.

    Financial reform will benefit our economy and result in a safer, more stable financial system.  Now is an appropriate moment for financial institutions – every one of which has benefited directly or indirectly from trillions of dollars of taxpayer support for the financial system – to consider their duty by recognizing that the status quo is not acceptable. 

    Financial reform is a complicated subject.  We welcome input from anybody who can help us get it right.  But we are not interested in compromising with those who see these issues through the prism of their continued ability to operate within the profitable, but unacceptable, paradigms of the past. 

    President Obama came to Washington committed to change the way business in government is done.  What we are able to do with financial reform now, in the wake of the financial crisis, is an important embodiment of that commitment.  In order to usher in a "new era of responsibility" we must ensure that we do not go back to the kinds of abuse that helped cause this crisis in the first place.

     
    Lawrence H. Summers is Director of the National Economic Council and Assistant to the President for Economic Policy

     

  • Fiesta Latina In Pictures

    Kori Schulman
    Kori Schulman
    October 14, 2009
    07:07 PM EDT

    Last night the President and First Lady hosted the third installment of the White House Music Series, this one celebrating Hispanic Heritage Month. Fiesta Latina brought some of the country's best Latin music performers to the White House, including: Mark Anthony, Gloria Estefan, Jose Feliciano, Pete Escovedo, Thalía, Tito "El Bambino," Aventura, Los Lobos and Sheila E., with hosts Jimmy Smits, Eva Longoria and George Lopez.
    Enjoy some snapshots from "In Performance at the White House: Fiesta Latina" and in case you missed the livestream, you can still catch the program on October 15, 2009 at 8 p.m. ET on PBS stations nationwide (check your local listings).

    Read More

  • The Engine of Our Economy

    Jesse Lee
    Jesse Lee
    October 14, 2009
    06:12 PM EDT

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    download .mp4 (100 MB) | read the transcript
    If you live anywhere near Virginia, you know there's one issue that's always on Virginians' minds, whether the economy is up or down: transportation.  And so as the Recovery Act keeps doing its job of creating jobs, the rehabilitation of the Fairfax County Parkway Extension is a good example of what the President means when he says that the Act is also creating a new foundation for the country. Nationwide, men and women are going back to work to rebuild our infrastructure for the 21st Century, getting back on their feet and getting our country back on track.
    The President gave a few remarks to the workers there after taking a tour with Transportation Secretary Ray LaHood:

    Hardworking Americans have borne the brunt of this recession.  They've been laid off in historic numbers; they've seen their hours trimmed and their wages cut; they've lived in fear of being the next ones to be let go.  And that's not right.
    Middle class Americans are the ones who built this country, made it great, and keep it going each and every day.  And they deserve leaders in Washington who are willing to work as hard as they work; who are willing to fight for their futures as hard as they fight for their families.
    We need to all live up to our responsibilities as faithfully as these workers here are living up to theirs.  And that's why our goal is not just to rebound from this recession, but to start building an economy that works for all Americans; where everyone who's looking for work can find a job -- and not just a temporary job, but a permanent job that lasts from season to season; where our stock market isn't only rising again but our businesses are hiring again.  That's our goal.
    And I know that we have a lot of work to do to meet that goal.  But I also know that thanks to the governor here in Virginia, Tim Kaine, thanks to two outstanding senators, Mark Warner and Jim Webb, and a great congressman, Congressmen Jim Moran and as well as Congressman Gerry Connolly, and thanks to the work of Ray here and the rest of my administration, we've made some meaningful progress over the last few months.
    President Barack Obama speaks about the Recovery Act during a tour of the the Fairfax County Parkway(President Barack Obama speaks about the Recovery Act during a tour of the Fairfax County Parkway extension project in Springfield, Va., Oct. 14, 2009.  Transportation Secretary Ray LaHood is at left. Official White House Photo by Lawrence Jackson)

  • Secretary Sebelius and Senator Murray on Health Reform

    Jesse Lee
    Jesse Lee
    October 14, 2009
    01:07 PM EDT

    As the second in our series of live video chats responding to different states and regions of the country, the White House welcomes Senator Patty Murray of Washington state for a discussion about her constituents' questions and concerns on health insurance reform. Senator Murray has been a thoughtful and dedicated advocate for change, and has shown a particular passion and expertise in how reform will help women in America -- she'll be taking questions with HHS Secretary Sebelius who definitely shares that passion. In addition to the questions from the Senator's home state, as always we'll be taking some questions live through Facebook.
    UPDATE: Watch the full video of the session:
    Viewing this video requires Adobe Flash Player 8 or higher. Download the free player.
    download .mp4 (296 MB)
     

  • "A Critical Milestone"

    Jesse Lee
    Jesse Lee
    October 13, 2009
    06:19 PM EDT

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    download .mp4 (65 MB MB) | read the transcript
    After many months of debate and deliberation, dozens of hearings, the dissemination and debunking of hundreds of myths and falsehoods, and testimonials from thousands and thousands of ordinary Americans asking for change, reform took yet another step forward.  With the emergence of a reform bill from the final committee in Congress with jurisdiction over the the issue, this issue that has seemed utterly intractable for most of a century is now closer to a resolution than it has ever been.
     

    The President took a few minutes this afternoon to express his approval:

    THE PRESIDENT: Good afternoon. Today we reached a critical milestone in our effort to reform our health care system. After many months of thoughtful deliberation, the fifth and final committee responsible for health care reform has passed a proposal that has both Democratic and Republican support. This effort was made possible by the tireless efforts of Chairman Max Baucus and the other members of the Senate Finance Committee. It's a product of vigorous debate and difficult negotiations.
    After the consideration of hundreds of amendments, it includes ideas from both Democrats and Republicans, which is why it enjoys the support of people from both parties. And I want to particularly thank Senator Olympia Snowe for both the political courage and the seriousness of purpose that she's demonstrated throughout this process.
    Now, this bill is not perfect and we have a lot of difficult work ahead of us. There are still significant details and disagreements to be worked out over the next several weeks as the five separate bills from the Senate and the House are merged into one proposal. But I do believe the work of the Senate Finance Committee has brought us significantly closer to achieving the core objectives I laid out early in September.
    Most importantly, this bill goes a long way towards offering security to those who have insurance, and affordable options for those who don't. It reins in some of the worst practices of the insurance industry, like the denial of coverage due to preexisting conditions. It also sets up an insurance exchange that will make coverage affordable for those who don't currently have it. And as the nonpartisan Congressional Budget Office has certified, it will slow the growth of health care costs in the long term and it will not add a penny to our deficit.
    The committee's progress over the past several weeks is the culmination of work by all five committees and numerous members of Congress over the better part of this year. We've reached out to stakeholders across the spectrum -- doctors and nurses, businesses and workers, hospitals and even drug companies. And we've considered a wide variety of ideas and proposals in an effort to find common ground.
    As a result of these efforts, we are now closer than ever before to passing health reform. But we're not there yet. Now is not the time to pat ourselves on the back. Now is not the time to offer ourselves congratulations. Now is the time to dig in and work even harder to get this done. And in this final phase, I hope that we will continue to engage each other with the spirit of civility and seriousness that has brought us this far and that this subject deserves.
    I commend the Chairman and the committee's members for their achievement and the example that they've set, and I look forward to continue to work with Congress in the weeks ahead. We are going to get this done.
    Thank you very much, everybody.

     

  • HHS and Flu.gov answer questions about the flu

    Erin Edgerton
    October 13, 2009
    06:00 PM EDT

    Healthcare professionals are seeing as much flu activity today as they normally see at the height of flu season and, with both Seasonal and H1N1 flu circulating the country, many are wondering what they should do about the flu.  With new tools and updated content on Flu.gov, the American public can continue to turn to the Department of Health and Human Services (HHS) for information on all things flu.

    "Flu.gov is a one-stop clearinghouse for the latest news about the flu," said HHS Secretary Kathleen Sebelius in a recent press release.  "These new resources on Flu.gov will help individuals get critical information on how to protect themselves and their families from the H1N1 virus. They will also help us to get accurate information out into the public realm so people know what the facts are about the flu."

    Along with federal guidelines, posters, toolkits, widgets, and e-cards, featured content on Flu.gov includes:

    H1N1 Flu Self-Evaluation

    During flu season this year, you might have to wait a long time in a crowded waiting room before you can see a doctor just to see if you might have the flu.  Some people who actually have the flu may need to be seen right away.  And other people can take care of themselves at home just fine.   This self-evaluation, available in both English and Spanish, gives you information about flu symptoms so that you can decide what to do.

    Created for educational purposes only and not meant to be a substitute for a doctor’s advice, answering the questions in the online self-evaluation gives individuals 18 and older information on:

    • What you can do to take care of yourself,
    • What you can do to prevent the flu in other members of your families, and
    • What the warning signs of more serious flu symptoms are—symptoms that need the attention of a medical professional.

    Flu Myths and Facts

    With the appearance of a new flu strain and an accompanying vaccine, many people have questions about H1N1 and Seasonal flu.  The myths and facts section on Flu.gov debunks some of the myths about the H1N1 virus and vaccine, and provides accurate information on vaccinations, the flu, and public health. And if you don’t see the information you are looking for, you can submit a question directly to public health experts.

    Ask the Expert

    Flu.gov offers information on a variety of different topics but for those who have a specific question about flu, you can send a question to public health experts.  A sample of the submitted questions and answers are posted on flu.gov.  Recent questions include:

    • Is the nasal spray seasonal flu vaccine as effective as the shot?
    • How long (one season or more) will immunity be effective from the H1N1 vaccine? Will this be an annual vaccine like the seasonal flu?
    • At work, they are putting together a team to develop Policies & Procedures. Do you have any suggestions?

    Read the answers to these questions or ask your own and for more information about flu, visit Flu.gov.

  • A Relationship that Dates Back Centuries

    Jesse Lee
    Jesse Lee
    October 13, 2009
    05:45 PM EDT

    (President Barack Obama and Spanish Prime Minister Jose Luis Rodriguez Zapatero, right, attend a working lunch in the Cabinet Room of the White House, Oct. 13, 2009. Official White House Photo by Pete Souza)
    Today, President Obama welcomed Spanish President Zapatero to the Oval Office for a productive meeting on issues of immediate and mutal concern—Afghanistan and the economy were at the forefront of the discussion.  President Obama shared highlights of the discussion with members of the press:
    The United States and Spain are NATO allies and our countries have a relationship that dates back centuries.  So on behalf of the American people I want to welcome you and deliver a strong message of friendship.
    Spain and the United States are working together on some of the most difficult security issues that we face in the world.  And during the course of our lunch we discussed the situation in Afghanistan, and I thanked Prime Minister Zapatero for the partnership with Spanish forces in helping to bring security and stability to Afghanistan and to help train Afghans so that they can provide for their own security.
    We discussed the Middle East, where the Prime Minister will be traveling after his visit to Washington.  And we both agreed that the time is right for a resumption of negotiations between the Palestinians and the Israelis in order to create two states that are living side by side in peace and security.
    In addition, President Obama congratulated President Zapatero on his 2010 assumption of the EU presidency:
    And I congratulated Prime Minister Zapatero on his assumption in 2010 of the E.U. presidency and pledged that the United States is going to be working closely with the E.U. on a whole range of issues -- from counterterrorism to Kosovo to dealing with improving relations with Russia -- even as we continue to move forward on further integration in Europe.
     
    (President Barack Obama listens to Spanish Prime Minister Jose Luis Rodriguez Zapatero, left, as they speak with reporters in the Oval Office following their meetings at the White House, Oct. 13, 2009. Official White House Photo by Pete Souza)

  • Fiesta latina en la Casa Blanca

    Luis Miranda
    Luis Miranda
    October 13, 2009
    03:45 PM EDT

    Esta noche la Casa Blanca se llenará del sabor de la cultura latina. Cómo parte de una serie de eventos en celebración de la música y el Mes de la Herencia Hispana, el Presidente Barack Obama y la Primera Dama le darán la bienvenida a una serie de invitados especiales de la música y entrenamiento latino. Entre los invitados se encuentran Marc Anthony, Gloria Estefan, Tito el Bambino, Thalia y el grupo Aventura. También estarán presentes Jimmy Smits, Eva Longoria y George Lopez, entre otros. La cena estará a cargo de la chef Maricel Presilla. 

    El evento será transmitido en vivo a partir de las 7:15 hora del este en WhiteHouse.gov/live y a través de Facebook. También podrá seguirnos a través de la nueva cuenta en español en twitter .

    Por otra parte y para continuar la celebración del Mes de la Herencia Hispana, WhiteHouse.gov  ha puesto hoy a su disposición una nueva versión de su página principal en español. En esta página podrá encontrar información sobre la reforma de salud, comunicados de prensa y declaraciones del Presidente así como acceso a nuestra lista de reproducción de videos en español o con subtítulos en español en YouTube, la nueva cuenta en Twitter y el blog. Esta página será actualizada cada semana, por lo que le pedimos que la visite frecuentemente.

    ¡Comparta esta información con sus familiares, amigos y compañeros de trabajo y disfrute el resto del Mes de la Herencia Hispana! 

    ----------------------------------------

    Latin Celebration at the White House

    Tonight, the White House will be filled with the Latin Culture flavor. As part of a series of evenings celebrating music and the Hispanic Heritage Month, President Barack Obama and the First Lady will welcome several Latin performers to the White House.  Among the guests are Marc Anthony, Gloria Estefan, Tito el Bambino, Thalia and group Aventura. Jimmy Smits, Eva Longoria and George Lopez will also be at the event. Food will be served by Chef Maricel Presilla. 

    The event will be broadcasted live starting at 7:15 pm EST on WhiteHouse.gov/live and Facebook. You can also follow us on our new account in Spanish on Twitter. 
     
    Also and to continue the Hispanic Heritage Month Celebration, WhiteHouse.gov  has launched today an updated version of its Spanish page at WhiteHouse.gov/spanish. On this page you can find information on the health reform, press releases, and remarks by the President as well as access to our YouTube playlist of videos in Spanish or with captions in Spanish, the new account in Twitter and the blog. This page will be updated every week, so we ask you to visit it frequently. 
     
    Share this information with your family, friends and co-workers and enjoy the rest of the Hispanic Heritage Month!

  • Bending the Curve in More Ways Than One

    Peter Orszag
    Peter Orszag
    October 13, 2009
    02:57 PM EDT

    Cross-posted from the OMB blog.

    Over the past few days, a number of news articles about health reform have suggested that efforts to control the growth of health care costs are in jeopardy.  Great strides to control long-term health care costs have been made in both the Senate and the House — fulfilling a key goal of the President's health reform effort.

     
    The two provisions that get the most attention are found in the Senate Finance Committee's mark.  The first is an excise tax on insurance companies offering high-premium plans — which would create an incentive for more efficient plans that would help reduce the growth of premiums. The second is a Medicare commission — which would develop and submit proposals to Congress aimed at extending the solvency of Medicare, slowing Medicare cost growth, and improving the quality of care delivered to Medicare beneficiaries. 
     
    These are both crucial facets of a reform plan, but too often other important delivery system reforms are ignored — which is unfortunately the case for those recent news articles.  The result is a failure to recognize how far the entire political system has come in putting us on the verge of passing fiscally responsible health insurance reform.
    Consider these important reforms found in many of the bills:
    • Bundled payments.  Bundled payments, which pay a fixed amount for an entire episode of care rather than piecemeal for each individual treatment or procedure, would help improve patient care by encouraging better and more coordinated care than under a fee-for-service system.  Bills in both the Senate and the House would develop, test, and evaluate bundled payment methods through a national, voluntary pilot program. Once we see what works and what doesn’t, bundled payments can be quickly scaled up across the country.
       
    • Penalties for high readmissions.  Too often, patients are discharged from the hospital without the necessary follow-up care — leading to re-hospitalization, risks to one’s health, and higher costs.  Under the proposals being considered, Medicare would collect data on readmission rates by hospital and would assess penalties on those hospitals with high, preventable readmission rates.
       
    • Accountable care organizations (ACOs).  Under the current system, quality and efficiency are not sufficiently rewarded, and there is little incentive for physicians to collaborate in the coordination of patient care.  Legislation in both houses would encourage and reward ACOs, which are groups of providers that are jointly responsible for the quality and cost of health care services for a population of beneficiaries with chronic conditions.
       
    • Quality incentives for physicians. These proposals would expand quality incentives for physicians and provide more timely feedback on physician performance based on their submitted data.
    These — and other measures — are why a bipartisan group of experts recently wrote that health reform legislation under discussion "offers many promising ideas to improve the overall performance of the U.S. health care system.  In addition to steps that would reduce the number of Americans without insurance coverage, the plan includes ways to slow long-term spending growth while building the high-value health care system our nation urgently needs."  The Administration looks forward to working with the Congress as the legislation proceeds to continue to refine and improve these cost-containing steps.

    Peter Orszag is Director of the Office of Management and Budget

     

  • Word from the White House: AHIP Report on Senate Finance Committee Bill

    Jesse Lee
    Jesse Lee
    October 13, 2009
    10:40 AM EDT

    It's no secret that institutions of all stripes focus their communications on certain messages day to day. We thought it would all be a little more open and transparent if we went ahead and published what our focus will be for the day, along with any related articles, documents, or reports.
    Supporting article: "Accounting Firm Admits Cost Savings Left Out Of Report Prepared For AHIP Report," TPMDC, 10/13/09
    Supporting blog post: "Reality Check: AHIP's "Study" Hard to Take Seriously," White House blog, 10/12/09
    Talking Points: AHIP Report on Senate Finance Committee Bill
     
    ·        This is a self-serving analysis from the insurance industry, one of the major opponents of health insurance reform.  Even the company hired to produce the report has issued a statement saying they produced a skewed report that analyzes only part of the bill because that is what the insurance industry paid them to do.
    ·         It comes on the eve of a vote that will reduce the industry's profits.  It is hard to take it seriously. The analysis completely ignores critical policies such as:
     
    Ø Grandfather policy that requires no change in the health insurance plan that you already get at work.
     
    Ø Tax credits for those who need help purchasing health insurance
     
    Ø Special policies for young adults, who AHIP claims will be hit hard, including tax credits and the choice of a special "young invincibles" plan that has a low premium.
     
    Ø A health insurance exchange that will increase choice and competition and put downward pressure on costs.
     
    Ø Reinsurance and other policies proven to ensure that no single group bears unexpectedly high costs.
     
    Ø Flawed analysis - especially on the tax on insurance companies that offer high-end policies.  Most economists conclude that will begin to lower costs, not increase them.
     
    Ø Few health insurance plans - and over time fewer - will have premiums high enough to be affected by the assessment.
     
    Ø The individual responsibility requirement in the Finance bill is sufficient to cover 94 percent of Americans and create an insurance exchange with over 20 million people, according to CBO.

  • Two Nominations for the Health, Safety and Lives of Women and Girls

    Nancy Hogan
    October 13, 2009
    09:15 AM EDT

    Recently, the President nominated two women to serve in his Administration who, if confirmed, will serve in positions that will directly impact the health, safety and lives of women and girls.
    Sara Manzano-Diaz was nominated to lead the Women's Bureau at the Department of Labor.  For almost 90 years, the Department of Labor's Women's Bureau has worked to improve the status of wage-earning women, improve their working conditions, and advance their opportunities for profitable employment. The Bureau is the only federal agency mandated to represent the needs of wage-earning women.  In 1922, it launched a major investigation on the conditions facing African-American women in industry. In the 1950's, it examined the dynamic situation of older women as office workers. In the 1980's, it broke new ground on the plight of contingent workers, and in the 1990's it researched and reported on domestic violence, long before experts considered the topic relevant to the workplace. 
    Sara is uniquely qualified to lead the Women's Bureau.  She has spent her career in public service advocating on behalf of working class families, women, and girls. She has more than 25 years of federal, state, and judicial experience including 16 years in senior management.  Most recently, she was appointed by Governor Edward G. Rendell as Deputy Secretary for Regulatory Programs at the Pennsylvania Department of State.  As Deputy Secretary, and the highest-ranking Latina in Pennsylvania state government, Ms. Manzano-Diaz is responsible for protecting the health, safety, and welfare of the public by overseeing the licensure of approximately 1 million professionals.  Previously, she served as Deputy General Counsel for Civil Rights and Litigation at the U.S. Department of Housing and Urban Development, where she enforced fair housing, civil rights, and anti-discrimination laws.  She has served as Co-Chair of The Forum of Executive Women's Mentoring Committee, which mentors young professional women as they begin their careers, and also participated in Madrinas, a program that provides mentors for at-risk Latina girls to encourage them to finish high school and attend college. 
    The President also nominated Susan Carbon as the head of the Office on Violence Against Women.  The announcement was made on the first day of the Domestic Violence Awareness Month.  Susan Carbon, first appointed to the bench in 1991, has been a Supervisory Judge of the New Hampshire Judicial Branch Family Division since 1996.  She is a member of the Governor's Commission on Domestic and Sexual Violence and, until recently, chaired New Hampshire's Domestic Violence Fatality Review Committee.  Judge Carbon was also a President of the National Council of Juvenile and Family Court Judges (NCJFCJ) from 2007 to 2008 where she still frequently serves as a faculty member.  She also serves as faculty for the National Judicial Institute on Domestic Violence - a partnership of the U.S. Department of Justice’s Office on Violence Against Women, the Family Violence Prevention Fund, and the NCJFCJ.  
    Sara and Susan are dedicated to the issues confronting women and girls across America and we are excited about the prospect of them leading such important offices.   
    Nancy Hogan is Director of Presidential Personnel

  • Calling all Investors, Consumers and Moms: What Do You Want to Know about Financial Regulatory Reform?

    Macon Phillips
    Macon Phillips
    October 12, 2009
    04:12 PM EDT

    In an effort to expand our online engagement around financial regulatory reform, the White House is trying something new. 

    The President’s speech on Friday was covered by a number of blogs, including three that will be following up with exclusive White House interviews.  The editors of those websites have been collecting questions from their readers and tomorrow senior White House officials will answer them.

    First is a website self-described as a "multimedia financial-services company dedicated to building the world's greatest investment community", The Motley Fool:

    This is Washington's way of saying that they value the community of investors that gathers here at Fool.com. We've got plenty of questions about the White House's financial reform plans, but as ambassadors of Fool.com, we want your voice to be heard.

    This is your chance to speak to the people who are shaping the policies that will affect our portfolios for years to come. Tell us what issues you want to see addressed. Just use the "comments" section below to tell us what we should ask the White House.

    The second is a popular resource for consumer-driven advice on a wide range of topics, including finance, The Consumerist:

     Watch his video and leave your questions in the comments.... Then, next Tuesday, we'll interview Diana Farrell, Deputy Director of the National Economic Council, get you some answers, and post the video. Deal?

    And finally, given the very active "mommy blogging" community’s unique perspective on financial decisions, we asked The Motherhood to gather questions from concerned parents.

    So learn more about financial regulatory reform, join the conversation happening at these sites and check back tomorrow for the follow-up videos.

  • Cybersecurity Awareness Month Part II

    John Brennan
    John Brennan
    October 12, 2009
    03:45 PM EDT

    In my last blog post, I linked to President Obama’s proclamation announcing the start of National Cybersecurity Awareness Month.  This week, I would like to discuss in more detail the cyber threats that we are facing as a Nation and as individuals.  A key theme for this month is that cybersecurity is "our shared responsibility."  Each one of us must take the time to increase our awareness of the cyber risks that are present every time we turn on our computers.
    Just the other day, the media was breaking a story about the latest generation of malicious software designed to steal money from bank accounts.  This "bank Trojan," called URLzone provides a sophisticated interface for managing theft from numerous accounts and deceives the account owner with false statements.
    For years, research institutions have noted a steady increase in number of malicious programs that are being used to exploit the vulnerabilities of our computers.  A vast percentage of all e-mail is spam, which tries to lure us into downloading software, visiting an infected website or social networking account, or even making a phone call in order to get us to reveal information useful for identity theft or to steal money.  Many of these malicious actors are now sending out fake emails from the Internal Revenue Service.
    Sophisticated cyber criminals are bypassing individual computer users and are attacking financial institutions. To them, the motivation is simple.  Why steal one bank account record when you can steal millions?  Fortunately, our law enforcement agencies have had some remarkable successes against key groups responsible for cyber attacks.  Just last week, nearly 100 people were arrested in the United States and Egypt on charges of computer fraud, conspiracy to commit bank fraud, money laundering, and aggravated identify theft.  Last month the U.S. Government convicted the individual responsible for the theft and sale of more than 40 million credit and debit card numbers from numerous U.S. retailers with losses of more than $21 billion. You can learn more about federal law enforcement efforts in combating cyber crime here, here, and here.
    And then there are the botnets, which are large numbers of compromised computers that are controlled remotely by criminals or other malicious actors.  Some computer experts have estimated that one quarter of all personal computers are part of a botnet.  The Conficker worm has been around for about a year and has managed to spread into millions of machines through network connections and portable media such as thumb drives.  These botnets appear to be used primarily for supporting criminal activities such as spam, but we worry that such large botnets could be used to launch unprecedented denial-of-service attacks against banking, government, or other important websites.
    As you can see, the cyber threat is quite real.  Every day dozens of Federal departments and agencies work with their industry partners to help mitigate these threats.  And while we have made great strides thwarting the efforts of cyber criminals, more needs to be done.  Next week, I will write more about the basic cybersecurity tips that every computer user should know and adopt.
    John Brennan is Assistant to the President for Homeland Security and Counterterrorism

  • Reality Check: AHIP's "Study" Hard to Take Seriously

    Jesse Lee
    Jesse Lee
    October 12, 2009
    03:35 PM EDT

    Reality CheckThis morning America's Health Insurance Plans (AHIP), the health insurance companies' lobbying operation, released a study it commissioned in an attempt to confuse the debate around health reform. Linda Douglass of the White House Health Reform Office didn't mince words in her reaction:
     
    "It comes on the eve of a vote that will reduce the industry's profits," Douglass told TPMDC. "It is hard to take it seriously. The analysis completely ignores critical policies will lower costs for those who have insurance, expand coverage and provide affordable health insurance options to millions of Americans who are priced out of today's health insurance market or are locked out by unfair insurance company practices."
     

    Here's an extended Reality Check to set the record straight:

    AHIP CLAIM: Health reform will cause health care premiums to rise faster than they would under the current system.
    REALITY: The Congressional Budget Office and other analysts confirm that the current Senate Finance Committee (SFC) health reform proposal will lower health care premiums in the exchange and make health insurance more affordable for families. AHIP’s study reaches its flawed conclusion for at least three reasons:
    ·         Selective analysis: the AHIP study picks and chooses which policies to consider, ignoring the full benefits of the SFC proposal. For example the AHIP analysis completely ignores:
    o   Grandfather policy that assures that if you like the plan you have, you can keep it.  
    o   Special policies for young adults, who AHIP claims will be hit hard, including premium credits and the choice of a special "young invincibles" plan that has a low premium.
    o   Reinsurance and risk-adjustment policies proven to ensure that no single group bears unexpectedly high costs.
    ·         Ignores historic investments in lowering premiums: In addition to cherry-picking policies to analyze, the AHIP study ignores the fact that the SFC reform proposal would provide tax credits to make health insurance affordable and help reduce the current $1,000 hidden tax imposed on families with coverage by those who seek care in emergency rooms.
    o   Eighty-five percent of people obtaining health insurance in the exchange would be eligible for new tax credits to make health insurance affordable. In addition, their out-of-pocket expenses on health would be capped. The AHIP analysis completely ignores the impact of these tax credits and cost-sharing protections.  
    ·         Does not take into account other policies to bend the cost curve – including ones that the consultant AHIP paid to produce this study has recommended to reduce costs. Pricewaterhouse Coopers itself has published reports confirming that investments like those in the SFC proposal – including in prevention and in reducing waste – will help bend the long-term health cost curve.
     
     
    AHIP CLAIM: Taxes on the highest cost health plans – so called "Cadillac" plans – will raise the cost of employer-based coverage. This is the single largest driver of AHIP’s assumed $4,000 premium increase in the large group market.  
    REALITY: The majority of health economists from all parts of the political spectrum have arrived at precisely the opposite conclusion — a tax on insurers that provide the highest cost health plans will contribute to lowering premiums. Even AHIP’s study acknowledges that insurers are like to lower premiums in response to this tax change.  
    ·         The AHIP study acknowledges that the impact of this plan will be for insurers to reduce premiums by creating more efficient plans. The report states: "we expect employers to respond to the tax by restructuring their benefits to avoid it." However, the study then assumes away this conclusion in its analysis. 
    ·         In addition, the AHIP study reaches its conclusion by assuming that the assessment provision will apply to some of the lowest cost "bronze" plans by 2016. This is at odds with the facts. In fact, premium data from the Congressional Budget Office suggest that the Bronze plan premium will be at half the Cadillac tax cap level in 2016.
    ·         A bipartisan group of health economists recently found that a tax on insurers offering high cost health pans was one of the "key opportunities for slowing long-term spending growth in the Baucus proposal."
     
     
    AHIP CLAIM: The failure to enact an individual responsibility requirement will increase costs in the individual market by creating an incentive for people to wait until they are sick to purchase coverage. This is the single largest driver of AHIP’s assumed 49% premium increase in the individual market.  
    REALITY: AHIP incorrectly downplays the responsibility requirement in the SFC proposal, which, in the context of comprehensive reform, will increase coverage by providing an incentive for the uninsured to enter the system.  
    ·         The Congressional Budget Office estimates that under the amended SFC proposal, by 2014, 15 million people will enter the exchanges, and by 2015, 22 million will enter, enabling adequate risk pooling and minimizing the adverse selection that the AHIP analysis assumes.

     

    ·         The Congressional Budget Office reached this conclusion because "the proposed mandate and subsidies would lead many people who would be uninsured under current law to obtain coverage in the exchanges."

     

     
    AHIP CLAIM: Reductions in Medicare spending will raise costs for families. Part of the premium increases that the AHIP analysis assumes stems from "provider payment cuts" in Medicare and Medicaid, leading to cost-shifting onto private plans.
     
    REALITY: Health insurance reform will strengthen Medicare. Once again, the assumptions in the AHIP analysis are not consistent with the facts of the bill that they are analyzing.
    ·         The overwhelming majority of savings in Medicare from the SFC reform proposal comes from reducing fraud and abuse, decreasing overpayments to Medicare Advantage plans, and other policies recommended by experts such as the Medicare Payment Advisory Commission. In fact, many of the industries affected recommended these levels of savings as responsible and necessary for health reform. 
    ·         AHIP also assumes that a public option would exist that would pay lower than private rates. The Finance proposal does not include a public option, and the Senate HELP version would negotiate rates rather than fix them, as suggested in the analysis.
     
     
    AHIP CLAIM: Fees on health insurance providers, pharmaceutical manufactures and device makers will be passed through to individuals and families.
     
    REALITY: This claim does not withstand scrutiny for at least three reasons:  
     
    ·         First, the idea that every dollar of assessment will be passed on to consumers is not credible – especially given the policy design. The policy assesses a flat amount per year, paid by companies based on their market share, beginning in 2010. The AHIP assumption that they will accumulate the amount of these fees and pass them along in a lump sum to enrollees later simply does not make sense.
     
    ·       Second, these fees are intended to recapture part of the benefits these businesses will get from reform. No one disputes that newly insuring nearly 30 million more Americans will increase their access to needed services – translating into new business for insurers, drug companies and device makers and other providers. This new revenue would far exceed the amount of the new fees – so if you believe that they will pass along the new assessment, they will also pass along their new windfall to consumers. 
     
    ·       Third, the fees help improve and expand coverage and thus reduce the $1,000 hidden tax tens of millions of Americans pay for the uncompensated care of the uninsured. Even if you believed that somehow companies would find a way to pass the fees along, they would be more than outweighed by the benefits middle-class families would get from not only hundreds of billions of dollars in health care tax credits but from reducing the hidden tax they currently pay for the uninsured.
     

  • Weekly Address: New Momentum for Health Reform

    Jesse Lee
    Jesse Lee
    October 10, 2009
    12:01 AM EDT

    The President goes through the leading conservative and Republican figures who have come out one after another urging passage of health insurance reform. After a summer of intense debate, cooler heads begin to prevail to make progress for the American people.

    Viewing this video requires Adobe Flash Player 8 or higher. Download the free player.

    download .mp3 |download .mp4 (78 MB) | read the transcript