Obama spars with insurers on health care

0 Comments | USA TODAY, June, 2009 | by Richard Wolf and David Jackson

WASHINGTON -- President Obama challenged the health insurance industry Tuesday to drop its steadfast opposition to a government-run plan that could compete with private insurers to drive down costs in a revamped health care system.

Industry leaders, however, said any type of public insurance option would drive private companies out of business, raise costs for employers and workers and increase budget deficits.

The back-and-forth represented a potential setback for Obama's goal of overhauling the nation's health care system -- something insurers helped to scuttle 15 years ago under President Clinton with their national "Harry and Louise" advertising campaign.

After months of getting along, lawmakers and health industry stakeholders have parted ways in...