Obama unveils new health care plan

05/29/2007

WASHINGTON (CNN) -- Illinois Sen. Barack Obama unveiled a new health care plan aimed at providing affordable health insurance for every American, by having the government and businesses contribute to covering the costs, Obama said in a speech in Iowa Tuesday.

Obama said his plan will save a typical American family up to $2500 every year.

"Never forget that we have it within our power to shape history in this country," the Democratic presidential candidate said. "It is not in our character to sit idly by as victims of fate or circumstance, for we are a people of action and innovation, forever pushing the boundaries of what's possible."

His plan will give individuals the option to purchase their own affordable, private insurance plans but makes it mandatory for all children to have health care coverage.

To keep health care costs low, Obama said he would reduce premiums. He said he would aim to make insurance companies more efficient and encourage competition between drug companies to make sure they lower the prices of their products.

"We have reached a point in this country where the rising cost of health care has put too many families and businesses on a collision course with financial ruin and left too many without coverage at all," Obama said. "A course that Democrats and Republicans, small business owners and CEOs have all come to agree is not sustainable or acceptable any longer."

Obama said that as president, he would sign a universal health care plan into law by the end of his first term.