During the speech, the President reiterated his belief that health care reform is a necessity, not a luxury, noting that while the United States spends more than any other nation on health care we are no healthier for it. Once again, the President made the case that reform is essential to restoring our fiscal health and putting the country back on the road to long term economic prosperity.

The President clearly made the case for a health insurance exchange, where people can compare and contrast plans and pick the one that’s right for them, and talked about his support for a public insurance option, which will give consumers more choices and increase competition to keep insurance companies honest, while lowering costs.

Here’s an excerpt from the Reuter’s article about the speech:

“Obama took his health care campaign to the annual meeting of the influential American Medical Association in Chicago, where he likened the U.S. health care system to struggling General Motors, which has filed for bankruptcy protection.

'If we do not fix our health care system, America may go the way of GM; paying more, getting less, and going broke,' he said.

"Make no mistake: the cost of our health care is a threat to our economy,' said Obama, who wants a health care 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.'

Thus far, the President has identified $950 billion in revenue and savings to pay for health care reform, including:

– Ending overpayments to Medicare Advantage that are a windfall for insurance companies at the expense of the American people, resulting in a savings of $177 billion over the next decade.

– Changing how Medicare reimburses hospitals, by discouraging them from acting in a way that boosts profits, but drives up costs for everyone else, resulting in a saving of $25 billion over the next decade.

– Saving approximately $75 billion by getting better prices for drugs under Medicare, and another billion by rooting out waste, abuse, and fraud throughout our health care system.

We’ll post the full text of President Obama’s remarks later today.

UPDATE: Below is an excerpt of the President's remarks:.

"If we fail to act -- and you know this because you see it in your own individual practices -- if we fail to act, premiums will climb higher, benefits will erode further, the rolls of the uninsured will swell to include millions more Americans -- all of which will affect your practice. If we fail to act, one out of every five dollars we earn will be spent on health care within a decade. And in 30 years, it will be about one out of every three -- a trend that will mean lost jobs, lower take-home pay, shuttered businesses, and a lower standard of living for all Americans.

"And if we fail to act, federal spending on Medicaid and Medicare will grow over the coming decades by an amount almost equal to the amount our government currently spends on our nation's defense. It will, in fact, eventually grow larger than what our government spends on anything else today. It's a scenario that will swamp our federal and state budgets, and impose a vicious choice of either unprecedented tax hikes, or overwhelming deficits, or drastic cuts in our federal and state budgets.

So to say it as plainly as I can, health care is the single most important thing we can do for America's long-term fiscal health. That is a fact. That's a fact."

Here's the full text of the speech and key excerpts posted on the White House's blog.

Democratic Senators Dick Durbin (IL), Chris Dodd (CT), Tom Harkin (IA), Jack Reed (RI) and Frank R. Lautenberg (NJ) held a press conference this afternoon to praise the passage of the legislation. Senator Durbin (IL) said, “The tobacco companies’ days of peddling one of the most deadly products in the world have finally come to an end. With the passage of today’s legislation we will begin to reduce the terrible toll tobacco has taken on children and families across the nation.”

The Washington Post reported:

“…Congress has been trying for more than a decade to regulate tobacco, coming close several times but faltering in the face of opposition from the tobacco lobby, the White House or procedural hang-ups. But in the years that the debate has raged, changing social attitudes toward tobacco helped transform the idea of regulation from controversial to common sense.

"There's not a smoker in the country that's an adult who wishes their children would begin smoking," said Sen. Chris Dodd, himself a former smoker. "And there are many adult smokers today who wish they never started. . . . This has been a very long battle. . . . For the first time we're going to make a difference. The FDA is going to regulate the production, sale and marketing of these products. That is history."

UPDATED by Cloe:

The House passed the bill today 307 to 97. Minutes after the legislation passed, President Obama made a statement from the Rose Garden. It’s excerpted here:

"…For over a decade, leaders of both parties have fought to prevent tobacco companies from marketing their products to children, and provide the public with the information they need to understand what a dangerous habit this is. And after a decade of opposition, all of us are finally about to achieve the victory with this bill, a bill that truly defines change in Washington.

"I'm proud that the House and the Senate have acted swiftly and in an overwhelmingly bipartisan fashion to pass this legislation that will protect our kids and improve our public health. Along with legislation to protect credit card owners from unfair rate hikes, homeowners from mortgage fraud and abuse, and taxpayers from wasteful defense spending, this kids tobacco bill would be the fourth piece of bipartisan legislation that I've signed into law over the last month that protects the American consumer, and changes the way Washington works and who Washington works for...."

Lenders must tell homeowners they have another 30 days to work with a credit counselor—and give them yet another 30 days if they see a credit counselor approved by the U.S. Department of Housing and Urban Development.

The Governor noted that this was just the beginning of reforming predatory lending laws and addressing how the state deals with foreclosures.

The President-elect also named Karen Mills as Administrator of the Small Business Administration and former Mayor Ron Kirk as United States Trade Representative.

Hilda has always been an advocate for everyday people. When she received an award several years ago, she said, “Fighting for what is just is not always popular, but it is necessary.” And that is exactly what she has done throughout her career, blazing new trails every step of the way. Whether it’s creating green jobs that pay well and can’t be outsourced or expanding access to affordable health care or raising the minimum wage in California, Hilda has been a champion of our middle class. And I know that Hilda will show the same kind of leadership as Secretary of Labor that she showed in California and on the Education and Labor Committee by protecting workers’ rights – from organizing to collective bargaining, from keeping our workplaces safe to making our unions strong. [...]

Few understand our infrastructure challenge better than the outstanding public servant I am asking to lead the Department of Transportation – Ray LaHood. As a Congressman from Illinois, Ray served six years on the Transportation and Infrastructure Committee, leading efforts to modernize our aviation system by renewing our aging airports and ensuring that air traffic controllers were using cutting edge technology. Throughout his career, Ray has fought to improve mass transit and invest in our highways. But he has not only helped rebuild our landscape, he has helped beautify it by creating opportunities for bikers and runners to enjoy our great outdoors. When I began this appointment process, I said I was committed to finding the best person for the job, regardless of party. Ray’s appointment reflects that bipartisan spirit – a spirit we need to reclaim in this country to make progress for the American people.

For Arne Duncan, CEO of the Chicago school system, "school reform isn’t just a theory in a book -- it’s the cause of his life," President-elect Obama said in announcing him as his choice for Secretary of Education.

"In the next few years, the decisions we make about how to educate our children will shape our future for generations to come," President-elect Obama said. "And the results aren't just about test scores or statistics, but about whether our children are developing the skills they need to compete with any worker in the world for any job." [...]

"In just seven years, he’s boosted elementary test scores here in Chicago from 38 percent of students meeting the standards to 67 percent. The dropout rate has gone down every year he’s been in charge. And on the ACT, the gains of Chicago students have been twice as big as those for students in the rest of the state," President-elect Obama said.

As Chief Executive Officer of Chicago schools, Duncan oversaw the closing and re-opening of Dodge Renaissance Academy, a school on Chicago's West Side that was the site of this morning's press conference. President-elect Obama pointed out that since the school re-opened in 2003, "the number of students meeting state standards has more than tripled."

Tonight, Barack Obama will accept our nomination to be President of the United States. His journey from that moment to now has taken him to every corner of this nation. Like another son of Illinois, he has spoken to a divided people about the better angels of our nature. To a country weary of the politics of division and deadlock, he has brought a message of unity and change.

We know that Americans hunger for change. They want to believe that they still have a fighting chance in our land of opportunity. They are the millions of new voters—Democrats, Republicans, and independents—who are stepping forward to be part of this historic campaign.

We see it in the eyes of the young people—who work night and day, eat cold pizza, and sleep on the floor, because they want to believe. We see it in the faces of gray-haired volunteers—who just one more time in their lives want to believe again.

This man, Barack Obama, has inspired America to believe that we can come together, meet the challenges of this new century and rise up to a better place.

I have been close to Barack Obama for many years, but now after this long campaign, so many of us know this man. We know how he thinks. We know his values. We know that Barack Obama’s journey has never been far from the pain and struggle so many Americans face today and that life has tested him and prepared him to lead this nation we all love.

Barack Obama had the good judgment to know that we should not risk the lives of our brave soldiers in the wrong war.

Barack Obama has the wisdom to know that we should never risk our freedoms and privacy to the overreaching hand of government.

Barack Obama has the good sense to know that the future of our nation is in the hands of hardworking Americans, not in the selfish grasp of the politically powerful.

Barack Obama knows that America’s best days are still to come.

Tonight, after this convention ends and the lights of this great stadium go dark, will come the morning light and the dawning of a new day. We have gathered here this week to dedicate ourselves to that new day. We should take the message from this Mile High City to every corner of this great land: that with this election the greatness of America can return.

America can move beyond the failed policies and broken promises of the last eight years.

America can turn the page and welcome a new generation of leadership.

Yes, America can. And, yes we can.

Barack Obama and Joe Biden will lead us to that better place—and we will be by their side every step of the way.

It will be a star-studded event. Among those set to speak before thousands:

Colorado Governor Bill Ritter, members of the family of Dr. Martin Luther King, Jr., New Mexico Governor Bill Richardson, DNC Chairman Howard Dean, former Vice President Al Gore and Senator Dick Durbin will introduce his colleague, Senator Barack Obama.

Catch live streaming high-definition video here.

Imagine that day: January 20, 2009. You are on the West Lawn of the Capitol, warmed by the throngs of excited people, all ages and colors. With his hand on the Bible that Michelle holds, Barack Obama takes the oath of office as the 44th President of the United States.

At that moment, the narrative about our country instantly changes.

For the family on the verge of losing their home, the uninsured dad who prays each night his kids don’t get sick, the waitress struggling with the rising cost of everything—for them, and millions more middle-class Americans who are barely holding on, this moment can’t come too soon.

The choice is clear: continue the failed Bush-McCain policies of the past eight years or head in a new direction for the change we need.

There’s John McCain, who feels the pain of big oil executives worried about losing their multi-billion dollar tax breaks. And then there’s Barack Obama who feels the pain of the mom or dad who fears their child will be part of the first generation of Americans to have less opportunity than the previous one.

Barack Obama believes the best is yet to come for America.

Those of us who served with him in the Illinois state legislature, worked with him in the U.S. Senate, have seen how he gets things done, know that he is the leader who can deliver the change we need.

Now it’s up to us.

The outcome of this historic election is within our reach and in our hands. In 2000, we came just 537 votes short of preventing the national nightmare of the Bush years. 537 more knocks on the door or 537 more registered voters could have changed the outcome. Just a handful of volunteers could have changed the course of history.

Tonight, each one of us must pledge to take responsibility to register every last voter, knock on every last door, call every list twice, recruit everyone we know. Each of us needs to believe that we could be the person who decides the outcome of this election and the future for our children.

Tomorrow we’ll fan out across this country, an army of everyday Americans who will accomplish something most extraordinary. Together we will rekindle the American dream and elect Barack Obama President of the United States of America.

If you want change, it is time for Latinos and for immigrants to rally behind the next President of the United States, Barack Obama. Tonight, I ask my friends in the Latino community, in the immigrant community, please join me, because Barack Obama is the change we need.

John McCain? McCain means more of the same, the same failed policies and empty promises for Latinos. I remember when John McCain said he would stand up for immigrants, until right-wing extremists told him to sit down. So he sat down.

That's why I have stood up for immigrants, from Mexico and Central America and Poland and Korea and every nation around our world, who come to America because we represent hope, and freedom, and opportunity.

I know, and you know, that immigrants come to our great nation to work the hardest jobs, for the longest hours, for the lowest pay – all because they believe in what makes us Americans. That if you work hard, you'll get ahead. That you put your family first. That to succeed all you need is an opportunity.

Hard work. Family. Faith. That's the America I know. That's the immigrant community I know.

But most important, when Barack Obama occupies the White House, that is the community our president will defend and respect by fighting for comprehensive immigration reform. Reform that keeps mothers and children and families together. Reform that brings hard-working people out of the shadows of disgrace and into the sunlight of dignity. That enforces our laws, keeps our borders secure, and our nation safe.

For immigrants, for Latinos, for all of us, the time for reform, the time for change, the time for Barack Obama is now. Tonight, no matter where you come from, or the language you speak, I am asking you: elect Barack Obama president because he will fight for us. He will bring the change we need, change now, change for everyone, justice for all, real change to make America as great as we can be.

Acts of courage like theirs happen everywhere American troops serve. They are happening right now. I know that—so does my family. My father served in Vietnam, my brother served in the Coast Guard, my husband just returned from Operation Iraqi Freedom. We served because we believe in this great nation and the opportunities it has given us. And because our service members support us, we must always keep the faith with them.

The administration of George Bush—supported by John McCain every step of the way—has let our warriors down. Our troops are courageous, strong and fierce. This administration has re-deployed them until they are overstretched, stressed and strained.

Our warriors should fight in Afghanistan where al-Qaida and the Taliban are on the offensive.

But instead of destroying the enemies who attacked us on 9/11, we have diverted our military might to Iraq, which had nothing to do with 9/11. When our warriors come home they deserve the best VA medical care, but too often they get bureaucracy, not benefits. They find inadequate access, inferior facilities and infuriating paperwork.

And now, John McCain wants to ration care. Under his plan, the VA will serve combat injuries, but everyone else gets an insurance card. Barack Obama and the Democrats have a different idea. Barack Obama will live up to their tradition of honor and sacrifice. Barack Obama will use war not as a first choice, but a last resort. Barack Obama understands that for a commander-in-chief to support the military, he needs more than a “Mission Accomplished” banner, more than wearing a borrowed flight suit, and definitely more than four more years of the same failed foreign policy.

President Obama will restore the might of the military, invest in our troops and only send our sons and daughters to war if they have a clearly defined mission and the tools they need to succeed.

I speak from more than a gut feeling on this. I know Barack Obama. I met him when he visited me and other wounded troops at Walter Reed. He came without reporters. He wasn’t looking for credit. He just cared about how we were doing. He knew that wherever you stand on the war, you must love the warrior, and he does.

I testified before his committee; I listened to him talk, but then I watched what he did and how he voted. As a Senator, Barack Obama worked to improve the lives of all our veterans. He fought to fix our rundown hospitals. He fought to cut through the red tape. Unlike John McCain, Barack Obama fought for a new GI bill—and won—so that every veteran has the same opportunity to pursue their American dream just like his grandfather had after World War II. So I know what he’ll do as president.

An America with President Obama will have a 21st century VA. He’ll improve access to health care. He’ll speed up disability claims. He’ll increase services for nationwide post-traumatic stress disorder and traumatic brain injuries as we have already done in Illinois under Governor Blagojevich’s leadership.

And Barack Obama will have a simple principle for homeless veterans: zero tolerance, because we are all dishonored when those who’ve worn the uniform sleep on our streets. But here’s what he won’t do: President Obama will reject John McCain’s plan to privatize the VA system. We won’t force veterans to search for medical care with nothing but a plastic card and the promise of payment. We won’t have means testing for access to the VA. Why? Because Barack Obama knows this: no one asked us where we lived or how much money we had when we enlisted, and no one should ask us that after we’ve bled for our country.

Fellow Democrats, fellow Americans: I believe in this nation that I love more than my own life.

Today we have an opportunity to honor our military men and women by living up to that soldier’s creed. Today we have an opportunity to give our veterans the benefits they rightfully earned. Today we have the opportunity to change our relations with the world.

I believe that America will elect the leader who has always fought to keep our nation’s promise to our veterans. I believe America will elect the leader who can best keep this nation strong.

Barack Obama is right for our military. Barack Obama is right for our veterans. Barack Obama is right for our country. And that’s why Barack Obama will be our next commander-in-chief.

God bless you, and always, God bless America.

For me and millions of Americans from every part of our nation, Barack Obama stands out because he understands that people want government to work for them again. During these tough economic times he is deeply concerned for our children, our families, and those who have been left behind. In all these things and more, Barack Obama has accomplished important goals by reaching out across the barriers that divide people.

Barack Obama didn’t care about what party you belonged to or what part of Illinois you were from. He knew that all of our people share common hopes and common dreams, and he found ways to move us forward together.

It’s time we had that kind of leadership in Washington again.

Americans know that our problems are too complicated for divisive politics. People are concerned about feeding their families and holding onto their houses. The American people are looking for change—and for leadership. They know that the same old politics won’t work.

I believe that leadership means bringing people together to meet the common challenges we face.

And it means listening to people.

Leadership means having the vision and courage to pursue real change. And that’s why Barack Obama is a leader, not just for our party, but for our country. He has the vision we need to break free from our dependence on foreign oil, to create millions of new jobs in communities across our nation, and to make sure that all people get the opportunities they deserve to pursue the American dream. He has a record of putting those good ideas into practice—by bringing people together and considering other points of view.

I’ve seen him reach out and accomplish great things for Chicago and Illinois. And I’m confident that he can do the same for our country. And with our help and support, he will!

Thank you.

In the 2006 election, Democrats, Independents, and even some Republicans scored a victory that President Bush himself called “a thumpin’.” Well, Mr. President, as Ronald Reagan used to say, “you ain’t seen nothing yet.”

The truth is, the Bush crowd has been giving the middle class a thumping. This November, the middle class is going to give it right back. This election comes down to a simple question: do we want four more years of Bush-McCain or do we want the change we need?

There is only one candidate from the middle class, that understands the middle class, and that can deliver the change the middle class needs: Barack Obama. A strong economy depends on a strong middle class. But George Bush has put the middle class in a hole and John McCain has a plan to keep digging that hole with George Bush’s shovel.

Under George Bush, median household incomes have declined nearly $1,000. College costs have doubled. Health care costs have doubled. And energy costs have tripled. Under George Bush, you’re paying more and making less.

If John McCain has his way, your bills will continue to grow and your paycheck will continue to shrink. Under George Bush, millions of Americans are without health care. And those that do have health care are seeing their co-pays go up and their coverage go down. If John McCain has his way, we’ll stick with the policies that will leave more Americans uninsured and far too many Americans paying more for health care and getting less.

You know, President Bush inherited the strongest economy in history and a huge budget surplus. He inherited an economy that created 23 million new jobs. I’m a little surprised. You would think the one thing President Bush was good at was inheriting things. Instead he turned a $236 billion surplus into a record deficit and added nearly $4 trillion in new debt. That’s the one thing we can say about George Bush: Mr. President, we will be forever in your debt.

When it comes to the economy, when it comes to job creation, when it comes to health care reform, or when it comes to deficit reduction, there are three words that describe the Bush-McCain record: mission not accomplished.

It doesn’t have to be this way. Barack Obama will make change a reality for middle class Americans. In an Obama-Biden administration, American families will finally get a new deal for a new economy: a tax cut they earned, health care they can afford, a pension they can keep and a college education they deserve.

Families like the Walshes from Chicago’s Edgebrook neighborhood: Marge and Don Walsh raised a family and taught their kids to know the difference between right from wrong. Their son Sean is a plumber who signed up for the Illinois National Guard and when his nation called, served two tours of duty in Iraq.

The Walshes have done everything this country has asked of them and more. But the Walshes and families like them can’t afford four more years of playing second fiddle to the well- connected and the powerful. And our country can’t afford four more years of Bush-McCain economics.

I know the Walshes, and I know Barack Obama. And families like the Walshes can trust Barack Obama. Because Barack Obama will always put hard-working middle class families first. He will stand up to the special interests and stand up for middle class Americans. The only special interests welcomed in the Oval Office will be those of the Walshes and middle-class families like them. And Barack Obama will deliver the change our country so desperately needs.