News From Washington, D.C.

President Obama nominates Kansas Governor Kathleen Sebelius for Secretary of Health and Human Services and Nancy-Ann DeParle as Counselor to the President and Director of the White House Office for Health Reform
Kathleen Sebelius has been the Governor of Kansas since 2003 and previously served eight years as a representative in the Kansas Legislature and eight years as Insurance Commissioner. Nancy-Ann DeParle was the Associate Director for Health and Personnel at the Office of Management and Budget under President Clinton and then became Administrator of the Health Care Financing Administration (now known as the Centers for Medicare and Medicaid Services). These nominations fill a void left by the withdrawal of former Senate Majority Leader Tom Daschle from consideration of two positions central to President Obama's health reform agenda.

President Obama releases 2010 budget and health care priorities
President Obama provided a budget outline that highlights the priorities for his Administration, including eight principles for health care reform: 1) protecting families' financial health; 2) ensuring that coverage is affordable; 3) aiming for universality; 4) achieving portability of coverage; 5) guaranteeing choice; 6) investing in prevention and wellness; 7) improving patient safety and quality of care; and 8) maintaining long-term fiscal sustainability. Although no specific proposals for health care reform are provided to address these eight principles, the President's budget includes a 10 year $634 billion reserve fund for health care reform. The President has stated that the reserve fund will not fully fund comprehensive reform of the health care system and that he will work with Congress to find additional resources.

President Obama's 2010 Budget proposal.

Statement from UnitedHealth Group on modernization of the health care system.

President Obama signs the American Recovery and Reinvestment Act (stimulus bill)
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act, which includes several health care provisions related to Medicaid funding, health information technology, health and wellness, comparative effectiveness research, privacy, and COBRA. The law provides a temporary federal subsidy of 65 percent of COBRA premiums for up to nine months for individuals involuntarily terminated from employment between September 1, 2008 and December 31, 2009.

COBRA provisions in the stimulus bill.

President Obama signs bill that extends and expands the Children's Health Insurance Program (CHIP)
On February 4, 2009, President Obama signed into law the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA). This law extends the program through 2013 at an additional cost of over $30 billion funded by an increase in tobacco taxes. Eligibility for children is expanded to 300 percent of the federal poverty level and it is estimated that an additional 4.1 million children will be covered by the program. In total, the expanded program is estimated to cover 11 million children. Under the law, there are also new disclosure, enrollment, and notification requirements for group health plans.

Requirements for group health plans under CHIPRA.

News from the states