Health Care Costs Are Projected To Outpace Economic Growth

Increased use of generic drugs caused a slight drop in the price of prescription drugs in 2012.

Increased use of generic drugs caused a slight drop in the price of prescription drugs in 2012.

The nation's health spending will bump up next year as the Affordable Care Act expands insurance coverage to more Americans, and then will grow by an average of 6.2 percent a year over the next decade, according to projections by government actuaries.

That estimate is lower than the typical annual increases before the recession hit. Still, the actuaries forecast that in a decade the health care segment of the nation's economy will be larger than it is today, amounting to a fifth of the gross domestic product in 2022.

They attributed that to the rising number of baby boomers moving into Medicare and the expectation that the economy will improve, according to a study published online in the journal Health Affairs.

The actuaries were not persuaded that cost-cutting experiments in the health law will have an impact. Neither were they convinced that new insurer procedures that change the way doctors, hospitals and others provide services will help. They assumed "modest" savings from those changes from the law.

"It's a little early to tell how substantial those savings will be in the longer term," Gigi Cuckler, an actuary for the Centers for Medicare and Medicaid Services and lead author of the report, told reporters Wednesday.

Still, the Obama administration enthusiastically greeted the report. "We are on the right track to controlling health care costs, thanks in part to the Affordable Care Act," CMS Administrator Marilyn Tavenner said in a statement. "More Americans will have the ability to get the health care they need, and that is a good thing. We have identified several areas where our reforms to control costs are making progress and we must build on those efforts in the years ahead."

But not everyone agrees. "I think it's quite clear from the study that the notion that the health care law fundamentally bends costs is just totally unsupported by facts," James Capretta, a budget adviser to President George W. Bush, said in an interview. "Something more fundamental needs to be done to slow costs than what is in the health law."

And Uwe Reinhardt, a Princeton economist who supports overhauling the health system said, "I also believe the ACA had basically nothing to do with the bending of the cost curve in the last few years." But he said he was more optimistic that health spending will not resume its old path of sharp increases. "I do believe there is a mood among the payers for harder push back on prices," he added in a podcast discussion about the report recorded by Health Affairs.

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Health Care Costs Are Projected To Outpace Economic Growth

Health Care Costs Projected To Outpace Economic Growth

Increased use of generic drugs caused a slight drop in the price of prescription drugs in 2012.

Increased use of generic drugs caused a slight drop in the price of prescription drugs in 2012.

The nation's health spending will bump up next year as the Affordable Care Act expands insurance coverage to more Americans, and then will grow by an average of 6.2 percent a year over the next decade, according to projections by government actuaries.

That estimate is lower than the typical annual increases before the recession hit. Still, the actuaries forecast that in a decade the health care segment of the nation's economy will be larger than it is today, amounting to a fifth of the gross domestic product in 2022.

They attributed that to the rising number of baby boomers moving into Medicare and the expectation that the economy will improve, according to a study published online in the journal Health Affairs.

The actuaries were not persuaded that cost-cutting experiments in the health law will have an impact. Neither were they convinced that new insurer procedures that change the way doctors, hospitals and others provide services will help. They assumed "modest" savings from those changes from the law.

"It's a little early to tell how substantial those savings will be in the longer term," Gigi Cuckler, an actuary for the Centers for Medicare and Medicaid Services and lead author of the report, told reporters Wednesday.

Still, the Obama administration enthusiastically greeted the report. "We are on the right track to controlling health care costs, thanks in part to the Affordable Care Act," CMS Administrator Marilyn Tavenner said in a statement. "More Americans will have the ability to get the health care they need, and that is a good thing. We have identified several areas where our reforms to control costs are making progress and we must build on those efforts in the years ahead."

But not everyone agrees. "I think it's quite clear from the study that the notion that the health care law fundamentally bends costs is just totally unsupported by facts," James Capretta, a budget adviser to President George W. Bush, said in an interview. "Something more fundamental needs to be done to slow costs than what is in the health law."

And Uwe Reinhardt, a Princeton economist who supports overhauling the health system said, "I also believe the ACA had basically nothing to do with the bending of the cost curve in the last few years." But he said he was more optimistic that health spending will not resume its old path of sharp increases. "I do believe there is a mood among the payers for harder push back on prices," he added in a podcast discussion about the report recorded by Health Affairs.

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Health Care Costs Projected To Outpace Economic Growth

American Legion Issues Report on VA Health Care for Women Veterans

WASHINGTON--(BUSINESS WIRE)--

The American Legion has issued its report on the quality of health care for women veterans at 15 Department of Veterans Affairs (VA) medical centers across the country.

Key findings of the Legions report include the fact that many former women servicemembers do not identify themselves as veterans, many VA medical centers lack long-term health care plans for women veterans, and VA facilities often have no inpatient or residential mental health programs for women veterans.

We found one case in which a woman veteran in Colorado had to fly to Coatesville, Pa., just to receive her mental-health care, said Verna Jones, director of the Legions Veterans Affairs & Rehabilitation (VA & R) Division. Many women who have served in uniform may suffer from post-traumatic stress disorder, military sexual trauma or depression. VA will be treating many more women veterans in the future, and it needs to make access to mental-health services for women one of its top priorities.

The 2013 Task Force Report on Women Veterans Health Care, released to the public on Sept. 17, is based on site visits by the Legions System Worth Saving (SWS) Task Force to VA facilities in Buffalo, N.Y.; Augusta, Maine; Fargo, N.D.; Chicago; Tampa, Fla., Erie and Coatesville, Pa.; Dublin, Ga.; Salem, Va.; Las Vegas; Tuscaloosa, Ala.; San Antonio; Texas; Madison, Wis.; Spokane, Wash.; and St. Cloud, Minn.

During these visits, SWS task force members and American Legion field service representatives interviewed each facilitys leadership and staff on the delivery of health care for women veterans.

The reports objectives were to understand what perceptions and barriers prevent women veterans from enrolling in VA health care, determine what challenges women veterans face with their health care, and provide recommendations that VA can take to improve access to health care for women veterans.

Challenges and recommendations from the Legions report include:

Recommendation: VA should develop a customized women veterans health benefits track to assist in making them aware of benefits available to them.

Recommendation: VA should consider implementing baseline facility enrollment and unique women veterans seen as percentage goals in relation to the facilitys catchment area.

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American Legion Issues Report on VA Health Care for Women Veterans

Report: W.Va. lagging on health care for poor

CHARLESTON, W.Va. (AP) -- West Virginia isn't doing a good job of delivering health care services for low-income residents, according to a private foundation's report released Wednesday.

The Commonwealth Fund report ranked West Virginia tied with Nevada for 41st among the states and the District of Columbia.

The New York and Washington, D.C.-based organization that supports independent research on health policy looked at 30 different indicators in four categories.

While West Virginia ranked 20th in providing appropriate preventive care screenings and treatment for low-income residents, it ranked 28th in health-care access and affordability, 46th in potentially avoidable hospital use and 50th in promoting healthy lifestyles.

The report, titled "Health Care in the Two Americas," found big gaps between the lowest- and highest-performing states. For instance, low-income adults in West Virginia are far more likely to lose six or more teeth to decay or disease compared to Connecticut, Hawaii and Utah.

The report also ranked West Virginia at the bottom for the number of hospital admissions and return trips and potentially avoidable emergency room visits among Medicare patients.

"We found repeated evidence that we are often two Americas, divided by income and geography when it comes to opportunities to lead long and healthy lives," said Cathy Schoen, a Commonwealth Fund senior vice president and the report's lead author. "These are more than numbers. We are talking about people's lives, health, and well-being."

Nine of the bottom 10 states were in the South.

The report used the most current data available, generally from 2010-2011. The goal is to prompt state policymakers and health care leaders to use the data to target resources for improvements for low-income residents.

West Virginia is already taking steps to do that.

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Report: W.Va. lagging on health care for poor

Health care seen wanting, but access better

How to improve health care for low-income Americans? Supporters of the Affordable Care Act say the key is expanding access to health insurance.

But in New York, that situation appears flipped, according to a report to be released Wednesday by The Commonwealth Fund.

Low-income New Yorkers fare better than residents of most other states at getting affordable medical services. But their illnesses are not always prevented or treated as effectively as other Americans, and they are more likely than most to end up in the hospital when such a trip could be avoided.

That's according to "Health Care in the Two Americas," a report examining low-income people's experience getting health care in 50 states and the District of Columbia.

New York ranked 17th on measures intended to show how well the state's health care system serves low-income families. About 40 percent of New Yorkers were considered low-income, defined as earning 200 percent of the federal poverty level $22,980 a year for an individual and $47,100 a year for a family.

The state was listed among the best performers in making health care accessible and affordable to low-income residents. It also scored well on measures indicating residents lead long, healthy lives, including relatively low rates of obesity and premature deaths.

But it landed among the lower half of states on measures of prevention, treatment and avoidable hospital admissions.

The reasons lie mostly in problems downstate, said Cathy Schoen, the report's lead author.

Asthma-related hospitalizations among children from low-income communities in New York were eight times higher than in Oregon, the state with the lowest rate. New York City health officials are working to remove asthma triggers from deteriorating homes, Schoen said.

The state's health system, especially downstate, is fragmented, with lots of specialty care and insufficient coordination, Schoen said. That accounts for high rates of readmission to the hospital for the same condition, among other things.

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Health care seen wanting, but access better

Coventry Health Care of Illinois and UnityPoint Health – Methodist Collaborate to Form High-Performance Network

PEORIA, Ill.--(BUSINESS WIRE)--

Coventry Health Care of Illinois, Inc. and UnityPoint Health Methodist are pleased to announce a new high-performance network in Peoria, IL.

The new product, Carelink from Coventry: A UnityPoint Health Methodist Partnership, is effective September 1, 2013. The goal of this collaboration is to improve quality of care and lower overall health care costs in the Peoria community. The partnership demonstrates a commitment to deliver more value to the patient, no matter what his or her health care needs may be.

Methodist is pleased to partner with Coventry to provide a high level of coordinated care to our community, said Methodist President and CEO Debbie Simon. Our partnership offers a seamless experience of holistic care to our patients. While we improve the quality of care, we can also reduce our patients out-of-pocket costs and enhance their entire health care experience.

Jered Wilson, Coventrys Vice President of Network Development, said, Were excited to partner with Methodist and offer a new and improved path to healthy living. This approach provides aligned, performance-based incentives between Methodist, its physicians and Coventry. Our combined goal is to keep our community that we live in, and serve in, healthy.

Methodist has an employed physician network of over 150 and an active medical staff of nearly 600 that provides coordinated clinic, hospital and home-based care for patients in Central Illinois. In 2012, Methodist delivered more than 1,748 babies, admitted 17,285 patients and had more than 56,545 emergency visits.

High-performance network model drives focus on more coordinated care

A high-performance network collaboration consists of a group of health care providers who assume responsibility for the quality and cost of care for a group of patients.

Coventry works with health care organizations throughout the state to develop products and services that support value-driven, patient-centered care. For more information on this specific high-performance network, please visit http://www.chcillinois.com > Health Care Solutions > Our Products > Carelink from Coventry.

About UnityPoint Health Methodist

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Coventry Health Care of Illinois and UnityPoint Health - Methodist Collaborate to Form High-Performance Network

Feds predict health care spending to rise 6.1% next year

Washington The nations health care spending will jump by 6.1 percent next year as the big coverage expansion in President Barack Obamas overhaul kicks in, government experts predicted Wednesday.

Thats more than 2 percentage points higher than the growth rate forecast for this year, and compares with a growth rate that has hovered under 4 percent, historically low, for the past four years.

Much of the increase projected for next year is attributed to the new health care program, which is expected to provide insurance coverage to millions of currently uninsured Americans beginning Jan. 1.

Without it, the estimated growth would be 4.5 percent, according to the report Wednesday from Medicares Office of the Actuary. The findings were published online by the journal Health Affairs.

Other factors driving up spending include an improving economy and the aging of the nations population.

Over the longer term, the health care overhaul would only be a modest contributor to spending increases, the report said. From 2012 to 2022, the new law is projected to add about 0.1 percent to average annual health spending growth.

In all, Obamas plan will add $621 billion to health care spending over that 10-year period, while expanding coverage to some 30 million uninsured people, experts said.

Some 11 million people are expected to gain health insurance coverage in 2014, mostly through new state insurance markets the law sets up or through expanded eligibility for Medicaid, the federal-state insurance program for low-income people.

Medicaid enrollment alone is expected to increase by 8.7 million people next year.

Many of the newly insured are expected to be younger and healthier. Theyre expected to devote a larger share of their health care spending to prescription drugs and physician and clinical services and a smaller share to hospital spending.

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Feds predict health care spending to rise 6.1% next year

Health care reforms drive opportunity for real estate investors

Originally Published: September 18, 2013 12:05 PMModified: September 18, 2013 2:42 PM

As health care reforms continue to change how the industry operates, many health systems are also taking a fresh look at how they manage their facilities.

During that re-evaluation, health systems are increasingly asking the question: Do we need to tie up our capital in buildings and infrastructure, or can it be put to better use in other areas of our operations?

The answer, at least as evidenced by recent activity in West Michigan, is that systems seem to be opting for sale-leaseback agreements rather than remaining property owners and they're finding willing investors interested in doing deals.

The health care market "is aggressive right now," said Anthony Pecchio, vice president of health care services for Christman Co. Most health systems these days are more concerned with consolidating, merging or buying other health systems, Pecchio said.

Health care organizations need to achieve a certain scale to operate efficiently in today's health care environment. At the same time, many are looking for capital to reinvest in their caregiving operations and see divesting of their real estate, particularly medical office buildings, as a way to put money in the bank. Being a property owner or their own landlord is not core to their patient-centered missions.

The trend has created an opportunity for third-party developers to develop facilities and lease them out or to take existing noncore facilities, such as medical office buildings and outpatient facilities, off health systems' hands, Pecchio said.

In particular, New York City-based American Realty Capital Healthcare Trust Inc., a real estate investment trust formed to invest primarily in high-quality medical office buildings and health care-related facilities, has been active in West Michigan over the past year.

The REIT, which floated a $1.5 billion initial public offering in 2011 to invest in health care infrastructure, continues to add properties to its portfolio in the sector, the most recent of which in Michigan was the Spectrum Health West Pavilion.

The building, built and owned by Christman, is a two-story, 52,000-square-foot structure designed as a prototype for Spectrum that's set up in the manner of a hub-and-spoke-inspired services delivery environment, said Joe Hooker, development services manager for the contractor.

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Health care reforms drive opportunity for real estate investors

How Sick is our Health Care System: The Question of Health Care Reform – Video


How Sick is our Health Care System: The Question of Health Care Reform
Steve Ullmann, director of Programs in Health Sector Management and Policy and professor of management, gave a special presentation, "How Sick is our Health ...

By: University of Miami School of Business Administration

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How Sick is our Health Care System: The Question of Health Care Reform - Video

Mrs. America Runner Up, Rachel Powers promotes natural health care and holistic sports medicine. – Video


Mrs. America Runner Up, Rachel Powers promotes natural health care and holistic sports medicine.
Rachel Powers, Actress and Dancer, shares her experience with natural health care and Dr. James Huang, owner of Center Your Health and Holistic Sports Care C...

By: Centeryourhealth

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Mrs. America Runner Up, Rachel Powers promotes natural health care and holistic sports medicine. - Video

Health care push in full swing in New Jersey

Monday, September 16, 2013 Last updated: Monday September 16, 2013, 2:53 PM

With Obamacares most critical stage set to launch in two weeks, efforts are intensifying across North Jersey to prepare thousands of uninsured people to enroll in new coverage plans, even as many remain ignorant about the most extensive government-sponsored health care initiative in nearly 50 years.

MITSU YASUKAWA/STAFF PHOTOGRAPHER

Sheila Thorne, a health care consultant, explaining the Affordable Care Act to employees at Bergen Community College in Paramus.

Volunteers went door-to-door in Moonachie trailer parks one recent sunny weekend in a campaign to tell the uninsured about the new options available Oct. 1.

What it means for you

Upcoming events where people in North Jersey can learn about the Affordable Care Act:

Tuesday, Paramus: AARP will distribute information at Bergen Countys Annual Senior Picnic, 9 a.m. to 3 p.m., Van Saun County Park.

Thursday, Paterson: Town Hall meeting, 6 to 9 p.m. Speakers: Sheila L. Thorne, National Partnership for Action to End Health Disparities, Region 11 Health Equity Council, and Carolyn Daniels, executive director, New Jersey Department of Health Office of Minority and Multicultural Health. City Council Chambers, 155 Market St., third floor. Free, but registration required: divvy@patersonnj.gov

Sept. 28, Hackensack: "Health Insurance 2013: What You Need to Know about the Affordable Care Act," presented by the YWCA Bergen County at Logan Family Life Center at Mount Olive Baptist Church, 274 Central Ave. Lunch and panel discussion, noon to 1 p.m.; Affordable Care Act workshops, 1 to 4 p.m. Free. Reserve seats at http://www.stayclassy.org/health2013 or call Wendy Worden at 201-881-1720 for more information, including VIP breakfast with Sherri Shepherd.

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Health care push in full swing in New Jersey

Health care workers near top of the list for getting hurt on job

Needles everywhere. Dangerous germs. Blood, urine and vomit. Users high on bath salts.

And, of course, lots of heavy lifting.

You have to be brave to face the hazards of working in health care.

More health care workers get hurt on the job than miners, farmers or stevedores. In fact, more health care and social assistance workers suffer work-related injuries and illnesses each year than in any other industry, according to the Occupational Health and Safety Administration.

And health care has one of the highest incidence rates of nonfatal injuries and illness.

That's bad news for workers and for employers who lose skilled workers to medical leave and foot the bill for workers' compensation claims. Faxton St. Luke's Healthcare, for example, racked up more than $4 million in worker comp claims last year, officials said.

The hospital now is implementing a program that should help reduce one of the most common health care injuries - back and upper extremity injuries while transferring patients, a job that's gotten more difficult as the population has become more obese. St. Elizabeth Medical Center has seen big payoffs since starting the same program in 2005.

Kathleen Schaub knows all about the risk of patient transfers. As a registered nurse in a cardiac telemetry unit at Faxton St. Luke's, she frequently helps patients into and out of bed.

In one scenario, workers lift a patient with their hands under the patient's armpits, she said. Sometimes, though, an uncooperative patient suddenly goes slack.

You can imagine what that does to your back, Schaub said. And that happens frequently.

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Health care workers near top of the list for getting hurt on job

First Thoughts: Health care remains a tough sell

NBC/WSJ poll: Health care remains a tough sell for Obama White House The older you are, the less you like it But the more you know about the law, the more you like it Obama addresses 5th anniversary of Lehman collapse, as well as perhaps the Great Disconnect Larry Summers drops out of contention for Fed Chair And wrapping Bidens day in Iowa.

By Chuck Todd, Mark Murray, and Domenico Montanaro

(AP Photo/Manuel Balce Ceneta)

Linda Norman, right, and Joanna Galt, both from Florida, hold their banners during a "Exempt America from Obamacare" rally on the West Lawn of the Capitol in Washington, Tuesday, Sept. 10, 2013.

*** Health care remains a tough sell: While Syria isnt officially on the backburner yet, its now an issue thats no longer consuming the Obama White House 24-7. But other potential problems remain, including keeping the government open after Sept. 30 and raising the debt ceiling by next month. Yet hanging over all of these budget debates is the implementation of Obamas signature domestic achievement: the health-care law. And new numbers from our NBC/WSJ poll show that the law remains unpopular with the American public. Per the poll, 44% call it a bad idea, while 31% believe its a good idea, which is virtually unchanged from Julys survey. Whats more, by a 45% to 23% margin, Americans say the law will have a negative impact on the country's health-care system rather than a positive one. And 30% of respondents think it will have a negative impact on their families. Just 12% say it will be positive, and a majority -- 53% -- don't believe it will have an impact one way or another. Weve said this before, and well say it again: Health cares unpopularity can be traced to the decision by the White House and its allies to allow Republicans to define it AFTER it was signed into law. Just how poorly has the White House messaged health care? Consider that 30% of Democrats say they dont know enough about the law to have an opinion, and only 56% of Democrats call the plan a good idea So barely half of the presidents base calls health care a good idea. Thats a big problem.

*** The older you are, the less you it: The age segment of the population thats most opposed to the health-care law? No surprise here: Seniors. Among those 65 and old, just 22% think the law is a good idea, versus 55% who believe its a bad idea. Among those 50-64, its 34% good idea, 46% bad idea. Among those 35-49, its 33% good idea, 49% bad idea. And among 18-34, its 31% good idea, 33% bad idea. Strikingly, however, the people who are most opposed are those who arent impacted much by the law, because they already qualify for Medicare. The silver lining for the Obama administration and Democrats is that young Americans -- who will continue to vote in elections for generations to come -- are the ones who are most open to the law. Then again, seniors are the folks who turn out in midterm elections

*** The more you know about it, the more you like it: Heres one more important finding from our poll: 34% say they dont understand the law very well, and another 35% say they understand it only some. That's compared with 30% who understand it either "very well" or "pretty well." As it turns out, that 30% has more positive opinions about the health-care law (42% good idea, 45% bad idea), versus the 34% who don't understand it very well (17% good idea, 44% bad idea). The old GI Joe saying applies here, Knowing is half the battle. The White House has tried to start health-care education campaigns a few times, but to no avail. If they could actually sustain one of their campaign-style pushes on health care, these numbers suggest it COULD pay off. Interestingly, to show how uneasy the White House is about making pro-health care arguments, look at this new OFA TV ad. Its a health care one-off that simply targets House GOPers on the budget. No effort is made in this ad to explain or sell health care.

*** Obama addresses 5th anniversary of Lehman collapse: At 11:40 am ET, Obama gives a speech at the White Houses Rose Garden to mark the fifth anniversary of the financial crisis start. On Friday, we wrote about the Great Disconnect -- how the economy has improved since then, but not for all Americans -- and Obama received a question about it in his ABC interview over the weekend. His answer: That's why we made sure that we had a tax system that was a little bit fairer by asking people to- pay more at the top. That's what the Affordable Care Act is about, is making sure that folks who have been left out in the cold when it comes to health care are able to get health care. That's why we strengthened the entire banking system. But Obama then pivoted to the current budget debates on Capitol Hill. There's no serious economist out there that would suggest that, if you took the Republican agenda of slashing education further, slashing Medicare further, slashing research and development further, slashing investments in infrastructure further, that that would reverse some of these trends of inequality. And heres another example of the Great Disconnect: The gap in employment rates between America's highest- and lowest-income families has stretched to its widest levels since officials began tracking the data a decade ago, according to an analysis of government data conducted for The Associated Press.

*** Why in Washington and not on the road? By the way, there was a time the Obama White House thought it wanted the president to mark this anniversary on the road somewhere, like, you know, on an actual Main Street -- to highlight those who have recovered since Lehman Brothers collapse -- but hes holding the event in DC. Its another example how the Syria debate handcuffed the president. This speech today wont have nearly the same amount of impact on the political debate coming from the Rose Garden vs. say Elkhart, IN.

*** Summers drops out of contention for Fed chair: When Obama speaks on the economy, one subject will hover over the event: Larry Summers withdrawal yesterday as a candidate for Fed chair. Make no mistake, Summers was the White Houses top choice for the post, even though he wasnt ever officially nominated. And the reason he pulled out is that he didnt have the votes, especially from Senate Democrats. Summers himself acknowledged this fact in his withdrawal letter to the president. This now makes Fed Vice Chair Janet Yellen the default leading candidate. The question is if Obama will still pick her after the White House has been quietly making a not-so-subtle case against her. Yellen is the easier candidate to confirm at this point and the White House would like a united Democratic party on Capitol Hill as they go into the fall debates on budget. But the president was leaning toward Summers because he wasnt sold on Yellen. Tim Geithner remains the presidents first choice, but Geithner has said no many times and his folks sent out word again over the weekend that he was still not interested. Don Kohn, a former No. 2 at the Fed is also under consideration.

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First Thoughts: Health care remains a tough sell