WRAPUP 5-Obama makes pitch for US House healthcare votes

By John Whitesides and Donna Smith WASHINGTON, Nov 7 (Reuters) - President Barack Obama urged Democrats in the U.S. House of Representatives to pass a broad healthcare reform bill on Saturday as they prepared for a close vote on the biggest changes in health policy in four decades. House Democratic leaders said they were confident they would have the 218 votes needed for approval after striking a middle-of-the-night deal with foes of abortion rights. The healthcare overhaul cleared its first hurdle when Democrats easily approved on a 242-192 vote a procedural rule setting the terms of the debate. It was the first test of support for the measure. Obama visited Capitol Hill for a closed-door pep rally with Democrats where lawmakers said he emphasized the urgent need for action on healthcare reform, his top domestic priority. "I urge members of Congress to rise to this moment, answer to the call of history and vote yes for health insurance reform for America," Obama said later at the White House. The bill is designed to rein in costs, expand coverage to millions of uninsured and bar insurance practices such as denying coverage to people with pre-existing conditions. The abortion deal, struck after hours of closed-door negotiations on Friday, allowed dozens of party moderates concerned about the bill's abortion provisions to have a floor vote on whether to impose stronger restrictions on using federal funds to pay for abortions. The vote on the amendment adds a new element of uncertainty after days of fevered negotiations and intense lobbying. If it is adopted, party leaders hope it will win over many abortion rights opponents without driving off supporters. BIG POLICY CHANGES The reform bill would lead to the biggest policy changes in the $2.5 trillion U.S. healthcare system since the creation of the Medicare health program for the elderly in 1965. House Republicans are united in opposition to the measure, unhappy with its $1 trillion price tag, new taxes on the wealthy and what they say is government interference in the private insurance market. The vote is critical for Obama and his fellow Democrats who control Congress. A House victory would be a big step forward for the overhaul and would shift the political spotlight to the Senate, which is preparing its own version. But failure in the House would be a huge blow to Obama, who has staked much of his political capital on the healthcare battle and has said he wants to sign a bill by year's end. Democrats can afford to lose 40 of their 258 House members in a vote, but the ranks of potential defectors is larger. House Republicans will be given a vote on their alternative healthcare plan before debate on the Democratic bill. The much smaller Republican proposal focuses on controlling costs and curbing medical malpractice lawsuits. The debate opened to an outburst of intense partisan and procedural wrangling, with Republicans repeatedly objecting to Democratic attempts to enter speeches in the record. "As the day goes on, we'll do everything we can to make sure this does not happen," House Republican leader John Boehner said. The Democrats' House bill would require individuals to have insurance and all but the smallest employers to offer health coverage to workers. It would set up exchanges where people could choose between private plans and a government-run insurance option, and offer subsidies to help low-income Americans buy insurance. Congressional budget analysts say the bill would extend coverage to 36 million uninsured people living in the United States to cover about 96 percent of the population, and would reduce the budget deficit by about $100 billion over 10 years. About 40 moderate House Democrats have said they will oppose the bill unless it ensures federal subsidies are not used to pay for abortions. About 190 members who favor abortion rights said they do not want the bill to exceed current restrictions on using federal money to finance abortions. Federal law prohibits the use of federal funds to pay for abortions except in the case of rape, incest or to protect the life of the mother. The amendment offered by abortion rights opponents would ban insurance policies offered on the new exchanges, including the public option, from covering abortions. Those seeking abortion coverage would purchase separate riders with private funds. (Editing by Arshad Mohammed and Vicki Allen) Keywords: USA HEALTHCARE/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.