Health & Medical Newswire

The American Medical Association (AMA) said  it opposes a proposal by President Obama to create a public health insurance plan as part of a massive effort to reform the health care industry.

Charles E. Grassley, Iowa Republican and ranking member of the Finance Committee is urging Mr. Obama to support taxing employer health benefits to pay for reform, an idea which President Obama denounced Sen. John McCain for proposing during the presidential debates.

“It looks like he’s looking at doing similar to what McCain wanted to do, and I think for the benefit of making this bipartisan, presidential leadership in this area would be very good based upon the tune of the last campaign,” said Sen. Grassley.

Sen. Christopher J. Dodd on the other hand while appearing Sen. Grassley on “Fox News Sunday” that he’s against taxing the benefits.

“I mean, the idea that you’re going to have people out there that are struggling to make ends meet today, they’re falling further and further behind with wages, people losing jobs, losing homes – to turn around and say, ‘You basically have no change in your health care plan, and by the way, we’re going to tax you now for those benefits’ – we can actually pay for this with proposals Mr. Obama has made”, he said.

Obama plans to pitch the AMA’s annual meeting in Chicago. President Obama is expected to walk through the case for health care reform, including how medicine is delivered and how efficiency could be improved, White House press secretary Robert Gibbs told reporters.