APPOINTMENTS

Monday, March 2, 2009 4:06 PM

Obama Announces Sebelius For HHS, DeParle As Health Czar

By AMY HARDER

(Credit: Rick Bloom/National Journal)

President Obama today announced his nomination of Kansas Gov. Kathleen Sebelius (D) as secretary of Health and Human Services, filling a vacancy that opened up almost a month ago when Tom Daschle pulled out amid revelations that he had failed to pay his back taxes.

Obama also named Nancy-Ann DeParle, administrator of the Health Care Financing Administration during the Clinton administration, as his choice to lead the newly minted Office of Health Reform. Since leaving HCFA in 2000, DeParle has been serving on corporate boards and working at a New York private equity firm, Harvard University and Wharton School at the University of Pennsylvania.

Obama touted Sebelius' willingness to work across the aisle and DeParle's extensive experience on health care regulatory issues. Sebelius has "bridged the partisan divide and worked a Republican legislature to get things done for the people of Kansas," the president said at a White House press conference. She "knows health care inside and out."

"Kathleen and Nancy share my resolve," the president said. "I look forward to working with them as we begin the urgent and immediate task of ensuring quality, affordable health care for every American."

He also underscored the importance of working with Senate Finance Committee Chairman Max Baucus, D-Mont., and House Energy and Commerce Committee Chairman Henry Waxman, D-Calif., lawmakers the administration deems crucial in passing health care.

Sebelius was re-elected in 2006 for her second term as governor, and she endorsed Obama in January 2008. Before her governorship, she served eight years as Kansas insurance commissioner. (Subscribers can read her full profile in the Almanac of American Politics here.) While Daschle was slated to fill both the HHS post and the White House health czar, Obama has chosen to split the role between two appointments.

In her remarks at the press conference, Sebelius drew parallels between the ailing economy and health care, stressing that "we can't fix the economy without fixing health care." She went on to emphasize her commitment to working across the aisle. "This isn't a partisan challenge; it's an American challenge, and one that we can't afford to ignore," she said.

Sen. Baucus, Interest Groups Give Thumbs Up

In a statement, Baucus endorsed Obama's choice, saying he was "particularly pleased to hear of her selection because she brings such solid experience to the position." The senator went on to say that "passing comprehensive health care reform is an absolute imperative this year, and, as a former insurance commissioner, Governor Sebelius really gets what needs to be done."

Ron Pollack, executive director of consumer group Families USA, agreed, saying Sebelius would do best working with Congress and having someone with more Beltway experience serve as health czar -- namely DeParle. "Governor Sebelius' strength is significant knowledge about the health care system and her general ability to work in a bipartisan fashion," Pollack said. "It makes sense that she be joined by someone who has more experience in Washington."

Drew Altman, president of the nonprofit Kaiser Family Foundation, cautioned that there will undoubtedly be "a lot of hurdles ahead" and that "we're just in the beginning of the process in terms of getting major health care reform legislation passed." Nonetheless, he sees a "truly strong team" with Sebelius and DeParle. The two balance each other well, he said.

Nancy Nielsen, president of the American Medical Association, also praised Obama's HHS pick. In a statement, Nielsen cited Sebelius' actions both as a governor and a commissioner as reason to believe she's "demonstrated the leaderships skills required" for the HHS post. As governor, "she demonstrated her commitment to health care reform by expanding access to care for children. As insurance commissioner, she helped preserve competition and choice in the health care marketplace by halting a problematic health insurance merger in the state."

The announcement precedes a White House summit on health care Thursday. Lawmakers on both sides of the aisle, as well as representatives from major interest groups and insurance and drug companies, are slated to participate, but the administration has not yet released any official information regarding the conference. Pollack said he didn't think Sebelius would play much of a role at the summit, however; she'll likely be busy prepping for her nomination hearing.