(Reuters) — U.S. Health and Human Services Secretary Kathleen Sebelius is resigning after overseeing the botched rollout of President Barack Obama’s signature healthcare reforms, aWhite House official said on Thursday (April 10).
Her departure removes a lightning rod for Republican critics as Obama and his Democrats try to retain control of the U.S. Senate in November midterm elections, where problems with Obamacare reforms will be a top issue.
The Oct. 1 launch of the new Obamacare health insurance marketplace, which was plagued by computer problems, has been condemned by Republicans as a step toward socialized medicine.
Obama has chosen Sylvia Mathews Burwell, his budget director, to replace Sebelius, the official said. She will manage the continued implementation of the Affordable Care Act, the signature legislation of Obama’s two terms as president.
Obama was due to announce the change with Sebelius and Burwell at his side at a White Houseevent at 10:45 a.m. EDT (1445 GMT) on Friday.
Sebelius, 65, became the public face for the problem-plagued start to the enrollment period for Obamacare, which was meant to reduce the number of Americans without health insurance and cut into massive U.S. healthcare costs.
When enrollment opened in October, a website used to shop for insurance in 36 states, HealthCare.gov, failed to work for weeks.
Even as she took responsibility for the failures, Obama stuck by Sebelius, brushing aside pressure to fire her.
“Access to healthcare.gov has been a miserable frustrating experience for far too many of these Americans,” she said at a November 6 hearing. “It’s unacceptable, I am focused on fixing it, and I am accountable.”
Burwell, a former official at the Gates Foundation and Wal-Mart Foundation, helped the administration manage its response to a shutdown of the federal government brought on by a budget battle with Republicans in October. She also was a key player in talks that yielded a two-year budget agreement in December.
“The president sought a nominee with strong credentials in management, implementation and performance for this important role,” the official said, noting she was confirmed unanimously to lead the budget office less than a year ago.
One of the first challenges for Burwell will be to work with health insurers in the coming months as they set prices for Obamacare plans in 2015. Industry executives have warned that many states could see double-digit increases in monthly premiums as they try to account for the higher proportion of older policyholders who often cost more to cover. Such price hikes would provide fodder for Republican opponents of the law who say it creates financial burdens for individuals and businesses.
