Obama lobbies doctors on healthcare reforms

Obama took his healthcare campaign to the annual meeting of the influential American Medical Association, which represents 250,000 doctors and has historically been opposed to a bigger government role in healthcare.

"If we do not fix our healthcare system, America may go the way of GM; paying more, getting less, and going broke," Obama said, likening the healthcare system to struggling carmaker General Motors, which has filed for bankruptcy protection.

"Make no mistake: the cost of our healthcare is a threat to our economy," said Obama, who wants a healthcare reform bill on his desk by October.

"It is a ticking time bomb for the federal budget. And it is unsustainable for the United States of America," he said.

The U.S. healthcare industry costs about $2.5 trillion annually but leaves 46 million Americans uninsured and with little access to medical care.

Obama's speech comes as debate sharpens over elements of the healthcare overhaul being drafted by Congress, including how to pay for the plan and whether it should include a public insurance program to compete with private insurers.

Health-related stocks fell more steeply than the 2.13 percent tumble in the Dow Jones Industrial Average on Monday. The Morgan Stanley Healthcare Payor index fell 2.95 percent while the Amex Pharmaceutical index fell 2.85 percent.

The chief executive of Aetna Inc, the No. 3 health insurer, told Reuters that Obama's remarks were a "step in the right direction." CEO Ronald Williams also said Aetna would focus on promoting public-private partnerships as part of reforms.

Many Republicans reject a public plan and say there is not enough support in Congress for it. They argue it would ultimately drive private insurers out of business.