NU Online News Service, July 22, 3:40 p.m. EDT

The White House is voicing support for a Senate proposal that would impose a tax on health insurance plans valued at $25,000 or more as a means of helping pay for health care reform.

At the same time, the president in several appearances yesterday made clear that any health care insurance reform program must include a mandate for insurers to cover pre-existing conditions–something the industry has already agreed to do.

And in the daily briefing yesterday, Robert Gibbs, presidential press secretary, said he doesn't expect Congress to finish work on getting health care reform bills through each chamber of Congress before the August recess. He does, however, want the House to pass a bill before then.

Specifically, when asked if President Barack Obama would be disappointed if the House went home for the August recess without passing health care reform legislation, Mr. Gibbs replied, "Well, it would be a pretty big disappointment to the American people."

He added that the president would like Congress to present a health care reform bill to him for signature before it leaves in 2009.

"I think the president is intent on ensuring that when Congress is done in 2009, that he signs comprehensive health care reform that cuts costs for small businesses and families, provides an opportunity for affordable, accessible health insurance," and has done something to "put our fiscal house in order," Mr. Gibbs said.

He also noted that the president is "encouraged" in terms of the "amount of progress that we've made–that we're closer to health care reform than we've been in 40 or 50 years."

Regarding taxing "Cadillac plans," Sen. Kent Conrad, D-N.D., said Tuesday that the Senate Finance Committee is considering a plan to tax insurers and employers that provide these plans. The tax would be on plans valued at more than $25,000 a year.

Sen. Conrad also said there could be regional variations on the cap.

In response, the president said he may be open to such a tax. But, Mr. Gibbs said the president would not support a total exclusion of such plans, as proposed during the presidential campaign by Sen. John McCain, R-Ariz., the Republican presidential candidate.

"I haven't seen the details of this yet, but it may be an approach that doesn't put additional burdens on middle-class families," President Obama said on a news show.

Regarding insurance companies, Mr. Gibbs said the president will continually say during the next several weeks that "basic insurance reforms" must be included in health care reform legislation.

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