Obama names Sebelius to lead health reform push

By David Alexander

WASHINGTON (Reuters) - President Barack Obama named Kansas Governor Kathleen Sebelius on Monday to lead his ambitious health reform effort, kicking off a week focused on revamping an inefficient healthcare system whose cost he fears is hurting the U.S. economy.

Obama also named former Clinton administration health official Nancy-Ann DeParle to serve as head of the newly created White House Office for Health Reform, which will help coordinate Obama's health reform agenda with Congress.

"If we are going to help families, save businesses and improve the long-term economic health of our nation, we must realize that fixing what is wrong with our healthcare system is no longer just a moral imperative, but a fiscal imperative," Obama said in announcing the appointments.

Sebelius, a former state insurance commissioner, is noted for trying to bridge the political divide as a Democratic governor in a Republican state -- a skill she will need to tackle one of the most ambitious undertakings of the new administration.

"We can't fix the economy without fixing healthcare," Sebelius said at a White House event announcing the appointments. "This isn't a partisan challenge. It's an American challenge and one that we can't afford to ignore."

DeParle handled budget matters for federal healthcare programs during President Bill Clinton's administration as well as the job of managing the Medicare and Medicaid health programs for retirees and the poor, which could be building blocks for a new system.

The appointments were largely welcomed by the healthcare industry. But critics took aim at both the larger role seen for government and Sebelius' record of supporting abortion rights.

Obama's healthcare push was stymied when his first nominee for the cabinet health job, former Senate Democratic leader Tom Daschle, withdrew after admitting he had paid $140,000 in back taxes and fines after being tapped for the post.