Obama, Democrats ponder next moves on health care

“It’s not going to be possible with that kind of an approach to come together within the time frame that he indicated,” said Senate Republican Whip Jon Kyl, flanked by fellow Republican leaders as he spoke to reporters outside the White House. That leaves the White House and congressional Democrats in the difficult position of deciding whether to try to force a reform of the $2.5 trillion US health care system through Congress with a little-used parliamentary maneuver that would allow approval by a simple majority vote.

Republicans have condemned any such move, but Obama suggested at the end of the health care summit the Democrats might have to consider it.

“We cannot have another yearlong debate about this,” the president said. “Is there enough serious effort that in a month’s time or a few weeks’ time or six weeks’ time we could actually resolve something?” “If we can’t, then I think we’ve got to go ahead and make some decisions,” he added, saying the voters could then pass judgment in November on the differing Republican and Democratic visions for the country.

Fundamental differences

Leaders of the two parties clashed frequently during the summit, with Democrats pushing their ideas for a sweeping reform of US health care, which now consumes some 16 percent of the economy while still leaving 48 million people uninsured with little access to regular care.

While Obama argues sweeping reform is necessary to the long-term health of the economy, Republicans sharply disagree with the size and scope of the plan. “There are some fundamental differences between us that we cannot paper over,” Kyl, the No. 2 Senate Republican, told Obama, adding his plan gave Washington too much power over the health system and took it away from patients and doctors. “We do not agree about the fundamental question of who should be in charge,” Kyl said.

Obama had hoped the daylong summit at Blair House, the presidential guest house across the street from the White House, would revive momentum in Congress for his faltering attempt to make health care more affordable and extend coverage to tens of millions of uninsured Americans. But at the end of the day, both sides seemed disheartened by the result. Obama admitted it might not be possible to bridge the differences, but said, “I thought it was worthwhile for us to make this effort.”

Obama may make ‘living wage’ factor in contracts

Companies that pay workers “living wages” and offer generous benefits could gain an advantage in bidding on government contracts under a new policy the White House is considering.

The policy, known as “high road” contracting, could draw the Obama administration into a larger debate over whether the government should use public purse strings to strengthen the middle class and promote higher labor standards. Business groups who oppose the plan say it would shut out smaller firms from competing for more than $500 billion a year in federal contracts and increase government procurement costs.

The plan’s advocates include unions. They say too many jobs financed by government contracts come with low wages and limited benefits and support companies that violate employment laws. The Economic Policy Institute, a liberal think tank, estimates that nearly 20 percent of the 2 million federal contract workers in the US earn less than the poverty threshold wage of $9.91 per hour.

Documents obtained by The Associated Press show the plan under consideration would examine the wages and benefits -- such as health insurance, retirement benefits and paid leave -- a firm pays its employees as a factor in the contract award process. Another factor would be whether a contract bidder is a repeat violator of labor and employment laws.  A Labor Department compliance office would compile a score on contract bidders based on the criteria.

Earlier this month, a group of four Republican senators led by Sen. Susan Collins of Maine wrote a letter to Budget Director Peter Orszag arguing that imposing such a policy could increase the cost of federal contracting and hurt small businesses. Washington AP