Obama: Cut insurance subsidies

Democratic presidential hopeful Sen. Barack Obama of Illinois proposed cutting government subsidies to private insurance companies under Medicare by $150 billion over the next decade.

Campaigning in Des Moines, Obama said the money could be used to strengthen the Medicare program overall, including a reduction in the prices seniors pay for prescription drug prices.

“We don’t do that because we are not setting the agenda in Washington -- insurance companies and drug companies are. That’s what people want to turn the page on,” he said to loud applause. “We want a system that’s fair and sensible to everyone.”