White House Issues Q&A on Health Plan

The White House, seeking to reassure allies that it hasn’t abandoned plans for a government-sponsored health insurance plan, issued a Q&A spelling out its position. Health Secretary Kathleen Sebelius on Sunday seemed to suggest President Barack Obama didn’t view a public plan as an “essential element” of the health care overhaul effort. (See a related story by Naftali Bendavid.)

Q: Based on what the President, Robert Gibbs and HHS Secretary Sebelius said yesterday, it is pretty clear that you are backing away from the public plan. Right?

A: Nothing has changed. The President has always said that what is essential is that health insurance reform must lower costs, ensure that there are affordable options for all Americans and it must increase choice and competition in the health insurance market. He believes the public option is the best way to achieve those goals.

Third Gun Incident In One Week Reported at Obama Event

Susan Davis reports on the White House.

An unidentified man was walking outside a veterans’ event with President Barack Obama today in Phoenix, Arizona with a pistol on his hip and an AR-15 semi-automatic assault rifle strapped to his shoulder.

Why? “Because I can do it,” he said when asked why he was armed, according to a report in the Arizona Republic. “In Arizona, I still have some freedoms.”

The paper reported that local police were in close proximity to the man, and that his actions, while perhaps unnerving, are not illegal.

“What he is doing is perfectly legal,” Det. J. Oliver, of the Phoenix Police Department said. “We are here to keep the peace. If we need to intervene, we will intervene at that time.”

It is this third time in the past week that there have been reports of men carrying firearms outside of events with the president.

During a town hall meeting last week in Portsmouth, N.H., a man was photographed outside of the event with a firearm strapped to his leg and a sign that read: “It’s time to water the tree of liberty,” a reference to the Thomas Jefferson quote that: “The tree of liberty must be refreshed from time to time, with the blood of patriots and tyrants.”

Also prior to the town hall, New Hampshire resident Richard Terry Young was arrested by Secret Service inside Portsmouth High School where Obama was scheduled to appear. He had a pocket knife on his person and an unlicensed loaded gun in his vehicle, parked on school grounds. He was taken in to custody hours before the president arrived.

In response to the recent reports, the Brady Campaign to Prevent Gun Violence released a statement today asking people to use “common sense” and leave their firearms at home while attending presidential events.

Have a Question for Tim Geithner?

From WSJ’s Real Time Economics blog.

The financial crisis may turn out to be the defining event of a generation, and now WSJ.com and Digg are giving readers access to one of its most central figures: Treasury Secretary Timothy Geithner.

Geithner has been at the center of the government’s response to the crisis since it first erupted. First, as president of the Federal Reserve Bank of New York, he acted as Fed Chairman Ben Bernanke’s right-hand man and representative to Wall Street during an unprecedented intervention by the central bank. Last year, President Barack Obama appointed him to lead the Treasury Department, and he has been the administration’s point man on the economy.

The Journal is partnering with Digg as part of the Web site’s Digg Dialogg series. Members of the Digg community will be able to submit and vote up questions that will be presented to the Treasury secretary.

Digg users can submit and vote for their favorite questions from now until Thursday afternoon at http://digg.com/dialogg/Timothy_Geithner_1. A video of the interview will be posted Aug. 25 before noon.

Geithner offers an insider’s perspective on events leading up to the crisis, but he’s also at the forefront of the government’s continuing efforts to deal with the fallout. Recently, he told the Journal that the administration’s reform plan is on track and Wall Street won’t be returning to business as usual.

Wall Street Journal Deputy Managing Editor Alan Murray will be presenting the most popular questions to Geithner.

White House-PhRMA Memo Surfaces Again

Alicia Mundy covers the pharmaceutical industry in Washington.

Since mid-July, the White House and the drug industry’s Washington lobby, PhRMA, have denied any specific agreement that would give the industry big benefits in exchange for its support for President Barack Obama’s health care overhaul effort.

But there is an email outlining a four-part deal that industry lobbyists were sending to each other on July 7. The White House and PhRMA have called the memo inaccurate, though one side or the other has acknowledged three of the four big points.

Lobbyists and reporters aren’t the only ones citing the memo. Barclays Capital advisers in New York included the memo in a note to its clients July 8, as part of its effort to keep clients informed about the likely impact of health care overhaul on their investments.

Barclay’s note said, “According to our Washington consultants, the components of this agreement, which is similar to the ‘Senate version,’ may be as follows,” and listed the terms but without naming the author.

Tony Butler, managing director and senior equity research analyst at Barclays Capital, reaffirmed his group’s belief in the memo’s importance. “We got this (memo) from some of our health consultants who have relayed accurate information before on the course of health care reform” and he backed it up with information from drug company executives and Senate Finance folks.

“It all holds together,” Butler said, detailing why industry wants to avoid the issues listed on the memo, one of which is an “expensive Pandora’s box.” He said he has been told Sen. Max Baucus, chairman of the Finance Committee, is on board with the memo contents.

Butler said the deal outlined in the memo provides more evidence that “the probability of health care reform significantly hurting the drug industry is diminishing each day.”

Ken Johnson, vice president of PhRMA said in a statement, “Frankly, I don’t ever recall seeing any analysts at any of our closed-door board meetings…. In fact, parts of the so-called memo are simply incorrect,” and that, he said, should speak to its authenticity. He did not specify which parts. The White House first referred Washington Wire to PhRMA, and had no immediate comment.

In Barclay’s cover letter accompanying the memo, Butler pointed out a typo–-a reference to Rep. Henry Waxman of California as “Senator Waxman.” We doubt Waxman would object.

Hutchison Makes Texas Governor’s Bid Official

Susan Davis reports on politics.

Texas GOP Sen. Kay Bailey Hutchison officially launched her bid for the governor’s mansion today, setting up what is expected to be one of the more expensive and contentious contests next year as she attempts to unseat fellow Republican, Gov. Rick Perry in the March 2010 primary.

Hutchison begins her campaign with a five-day, 19-stop “Texas Can Do Better” tour that will have her canvass the Lone Star State.

“He’s a dedicated public servant,” she said of Perry at her campaign kick-off in her former high school. “I know he loves Texas. But now he’s trying to stay too long.”

The Dallas Morning News reported that Mark Miner, Perry’s spokesman, was on hand at the event to counter Hutchison. “It’s very easy to criticize after being in Washington for 16 years,” he said. “After years of bailouts, earmarks and out of control spending, she wants to come back to Texas and bring those Washington policies back here that are proven to be ineffective.”

A truck with a sign the read, “Kay Bailout Express” was outside the event.

Karen Hughes, a former top adviser to former President George W. Bush, has endorsed Hutchison and appeared with her this morning. “This race is too important to stand on the sideline,” Hughes said.

In February, former Alaska Gov. Sarah Palin endorsed Perry.

According to the Associated Press, just two Texans, Sam Houston and Price Daniel, have made the jump from the Senate to the governor’s mansion.

Hutchison will give up her Senate seat sometime in the fall, but she has not announced a specific date yet.

Clinton Visit Highlights Doubts About Kim Jong-Il’s Health

Peter Spiegel reports on foreign affairs.

Amidst the educated guesswork going on within the Obama administration over North Korea’s intentions in the wake of the high-profile visit of former President Bill Clinton to Pyongyang earlier this month is a growing consensus that North Korean leader Kim Jong-Il appears to be in better health than many believed just six months ago.

Associated Press

In this photo released by Korean Central News Agency via Korea News Service in Tokyo, former U.S. President Bill Clinton, right, meets with North Korean Leader Kim Jong Il, left, front, in Pyonggyang, North Korea on Aug. 4, 2009.

According to one senior administration official who works on East Asian issues, Kim’s very public greeting of Clinton – and his relatively healthful appearance, particularly compared to photos from late last year – has led many North Korea watchers to believe reports of the Dear Leader’s imminent demise may have been exaggerated.

“It’s pretty clear that North Korea has started putting out a lot of contemporary pictures, as opposed to pictures we’ve seen before retouched to look like they’re new,” the official said. “We also have a pretty good track record of underestimating Kim Jong-Il’s health.”

The official warned, however, that the U.S. remains largely in the dark when it comes to hard intelligence on the leadership in Pyongyang and most estimates are little more than informed Kremlinology: attempts to interpret the highly-scripted public appearances and announcements emanating from the Hermit kingdom.

“It’s one of these things we can make estimates on observations and pictures, but in the end I’m not sure…we can draw any crashing conclusions from it,” the official said. “I’m not sure any of us know exactly what’s going on within the inner sanctums on their succession process.”

Former GOP Leader Tom DeLay Joins ‘Dancing with the Stars’

Susan Davis reports on politics.

Former House Republican Majority Leader Tom DeLay will be one of 16 celebrity-ish contestants on this season of ABC’s hit show “Dancing with the Stars.”

Yes, you read that right.

The Texan, who built a reputation out of twisting arms, joins Donny Osmond, actors Melissa Joan Hart, Debi Mazar, model Kathy Ireland, reality TV star Kelly Osbourne and former Dallas Cowboys wide receiver Michael Irvin, among others, in the competition.

“The former House Majority Leader is a prominent Republican and conservative firebrand,” reads a bio of DeLay in the cast announcement.

The line-up for the ninth season, which begins Sept. 21, was announced this morning on ABC-TV’s “Good Morning America.”

Specter: Town Hall Tone Isn’t Representative of Opinion

August Cole reports on town hall meetings.

After enduring a bruising series of town hall meetings with his Pennsylvania constituents, Democratic Sen. Arlen Specter on Sunday said he didn’t believe the recent barrage of in-your-face criticism of the Obama administration’s health-care plan and the federal government in general reflected broader public sentiment.

“I think we have to bear in mind that, although those people need to be heard and have a right to be heard, that they’re not really representative of America, in my opinion,” Specter told ABC News’s “This Week.”

The tone of the town hall meetings between Mr. Specter and his constituents has been among the most aggressive of similar sessions that are taking place across the country. The Pennsylvania senator even enlisted additional security help from the U.S. Capitol Police to augment a normal security presence from local law enforcement.

With Congress in recess for August, town hall meetings have emerged as a stage for the larger debate over proposals to change the health-care system. Opponents have used the gatherings to try and block initiatives on the issue, taking Democrats by surprise. “We also can’t allow these kinds of town hall meetings to dominate the political process,” Specter said.

Now, President Obama himself has entered the fray, taking his message outside the Beltway by holding a series of meetings in states such as Colorado and Montana.

Transcript of President Obama’s Town Hall Meeting on Health Care

THE PRESIDENT:  Thank you.  Thank you.  Hello, Grand Junction!  (Applause.)  Thank you so much.  Thank you.  Everybody please have a seat.  It is good to be back in Southwest Colorado.  (Applause.)  Last time I was here I had some really good peaches.  (Laughter.)  Somehow, though, Michelle and the girls got to go pick peaches — and I’m hoping they bring some back for me.

It is nice to take a break from the back and forth in Washington.  I want to especially want to thank Nathan for his introduction and sharing his story.  (Applause.)  It’s not easy to talk about an illness in the family.  It’s not easy to talk about such a painful experience.  Because it’s important that we understand what’s at stake in this health care debate he’s been willing to share it with us.  And so I’m very grateful to him.

We’ve got a couple of other special guests that I want to acknowledge.  First of all, I stole him from you to make him what I believe will be the best Secretary of the Interior in the history of the United States, Ken Salazar.  (Applause.)  But I left things in good hands with the outstanding congressman and brother of Ken, John Salazar.  (Applause.)

Your outstanding governor of this great state, Bill Ritter, is here.  (Applause.)  As well as the extraordinary First Lady of the state, Jeannie Ritter is here as well.  (Applause.)

Two of the finest young senators that we’ve got in Washington right now:  Senator Mark Udall.  (Applause.)  And Senator Michael Bennet.  (Applause.)

I want to thank the hospitality of Grand Junction Mayor Bruce Hill.  (Applause.)  And finally I want to thank Tillie Bishop for the invocation.  (Applause.)  And I want to thank the Central High students Elise Beckstead, Crystal Rossman, Axel Urie and Amelia LyBarger for their National Anthem and Pledge of Allegiance.  Thank you, guys.  (Applause.)

Obama Won’t Punish Blue Dogs, Jarrett Says

Jake Sherman reports from Pittsburgh on the Netroots Nation convention.

Valerie Jarrett, the president’s senior adviser, said that President Barack Obama will not punish Blue Dog Democrats for their role slowing the health care debate.

Baratrunde Thurston, a political comedian, took questions from Twitter, Facebook and email for Jarrett during a talk at the Netroots Nation convention. One question asked if Obama would tell Blue Dogs that they would have to go to Republican Sen. Jim DeMint for federal funding if they don’t support health-care overhaul.

“I know that there is a lot of frustration here and around the country and I am telling you I’m convinced this president has it right,” Jarrett said to a largely friendly audience. “He’s going to continue along the way he’s going. He’s not the one to punish.”

She reassured the group of progressives that Obama is for the public option, but she did acknowledge some frustration within the White House walls. “We share your frustration, we share your sense of urgency,” Jarrett said when asked what the blogosphere can do for Obama. “Stay engaged, push us, have a constructive conversation with us.”

There were a few hecklers here Saturday morning. Some convention-goers took issue with Obama’s continuation of Bush-era policies like indefinite detention and the ongoing business dealings with the private security company Blackwater.