Obama says insurance companies holding US hostage

BELGRADE, Mont., (Reuters) – U.S. President Barack  Obama, pushing for healthcare reform during a trip to the West,  said yesterday the country was “held hostage” by insurance  companies that deny coverage to sick people.

Obama, on a multi-state swing to tamp down vociferous  opposition to his top domestic priority, targeted insurance  companies for dropping customers who become sick or forcing  patients to cover huge costs.

“We are held hostage at any given moment by health  insurance companies that deny coverage or drop coverage or  charge fees that people can’t afford,” Obama told a crowd of  some 1,000 people in Montana.

“It’s wrong. It’s bankrupting families. It’s bankrupting  businesses. And we are going to fix it when we pass health  insurance reform this year,” he said.
In a half-work, half-play trip with his family that will  include stops at the Grand Canyon and other national parks,  Obama, a Democrat, aims to emphasize the benefits of his nearly  $1 trillion plan to overhaul the insurance industry, expand  healthcare coverage and cut costs to consumers.

Protesters and supporters lined up outside the venue for  his first town hall-style meeting in Montana, a traditionally  conservative state, but the crowd inside was mostly supportive  of the president.

One man challenged Obama on how he would pay for the  reform.
“You can’t tell us how you’re going to pay for this,” the  man said. “The only way you’re going to get that money is  raising our taxes … (and) you said you wouldn’t do that.”

Obama repeated his promise not to raise taxes on people  earning $250,000 or less a year, but he acknowledged that the  government would likely end up having to find $30 billion a  year to cover the cost of getting coverage to the uninsured.

“You are absolutely right I can’t cover another 46 million  people for free,” Obama said, thanking the man for asking his  question respectfully. “We’re going to have to find money from  somewhere.”

Another questioner, who identified himself as someone who  sold health insurance, asked the president why he was vilifying  insurance companies.
Obama said some companies had been constructive, citing  Aetna as a firm that had worked with the administration on the  issue of pre-existing conditions.
Obama has been fighting against Republican criticism that  his plan amounts to a government takeover. The issue has  sparked emotional and sometimes hostile questioning from  citizens at similar question-and-answer sessions with lawmakers  across the country.