President Obama has proposed a $2.5 trillion overhaul of the U.S. healthcare system, which he hopes will also stimulate economic growth. One of the key aspects of the presently-proposed plan is the creation of a government-run insurance program that would provide coverage for the 46 million Americans who are uninsured.

Part of the plan to pay for this overhaul requires scaling back on tax deductions to the highest-income brackets. Moreover, President Obama proposes cutting down on overpayments to Medicare Advantage, as well as changing the structure of Medicare reimbursements to hospitals and increased provision of generic drugs.

The idea of a government competitor to private insurers has been a point of contention in Congress. The Democrats propose that public competition is the only way that private insurers will keep premiums low. Republicans, on the other hand, contend that the proposal will drive private insurers out of business, thereby essentially promoting a public-run healthcare system. As a result, a potential compromise that is being discussed is the creation of non-profit insurance cooperatives, owned and operated by their members, which will compete with private insurers in providing coverage for individuals and small businesses.

Several associations in the healthcare industry, such as the American Nurses Association and American’s Health Insurance Plans, have publicly voiced their position on healthcare reform. The American Medical Association has historically opposed the extension of government involvement in the medical system and had released a statement saying that it opposes expansion of Medicare to cover the uninsured or a plan that offers the same structure as Medicare. In speaking on June 15, 2009, Obama presented his proposal to the American Medical Association (AMA). Obama assured them that “if you like your doctor, you will be able to keep your doctor… If you like your health care plan, you will be able to keep your health care plan…My view is that health care reform should be guided by a simple principle: fix what’s broken and build on what works.”