In bid to calm markets, Obama urges deficit reduction approach that includes 'modest adjustments' to Medicare

As the stock market plunged, President Barack Obama said the nation's deficit couldn't be ignored. He recommended an approach that includes spending cuts as well as increased tax revenue and "modest adjustments" to health care programs. Meanwhile, health care stocks were among those that posted double-digit losses, and, as the fallout from S & P's downgrade continues, some states are at more risk than others.

Los Angeles Times: Obama Says U.S. Remains 'AAA Country'
He said that rising deficits can't be ignored. In the second round of deficit reduction talks that will play out this fall, he recommended an approach that would combine spending cuts with tax revenue increases along with what he called "modest adjustments" to popular entitlement programs like Medicare. Obama could not persuade Congress to adopt that formula in the debt negotiations that were concluded last week (Nicholas, 8/8).

The Wall Street Journal: Obama Bid To Boost Confidence Fall Short
President Barack Obama, speaking Monday as stocks were plunging after the first-ever downgrade of the U.S. government's credit rating, tried to rally confidence that Washington will be able to address growing concerns about the federal debt. Mr. Obama said he would place ideas for tax revisions and Medicare "adjustments" before a new congressional committee charged with cutting the deficit (Lee, 8/9).

Kaiser Health News: Obama: 'Lack Of Political Will' On Tackling Deficits (Video)
In this Kaiser Health News video clip, President Barack Obama made remarks to the country about the S & P downgrade and also said the country needed tax reform and "modest adjustments to health care programs like Medicare." Here's a video and a transcript of the President's excerpted remarks (8/8).

The Associated Press: States Await Fallout From Federal Debt Downgrade, Some Expected To Be More At Risk Than Others
States with high numbers of federal workers or contractors, large military presences or generous Medicaid programs for the needy are among the most vulnerable from Standard & Poor's recent downgrade of U.S. government debt (Haigh, 8/8).

Modern Healthcare: Health Care Stocks Post Double-Digit Losses
Shares of selected publicly traded health care providers were down even more than the broader market, with several falling by percentages in the double digits. Among them, hospital giant HCA, Nashville, fell 17.3 percent, Community Health Systems, Franklin, Tenn., dropped 16.2 percent, and Universal Health Services, King of Prussia, Pa., fell 11.9 percent, all on a day when the broader market, as measured by the Standard & Poor's 500 index, fell 6.7 percent (Barr, 8/8).