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Clinton's Health Defeat Sways Obama's Tactics

WASHINGTON — Before Congress’s August break, the chief aides to Senate Democrats met in a nondescript Senate conference room with three former advisers to President Bill Clinton. The topic: lessons learned the last time a Democratic president tried, but failed disastrously, to overhaul the health care system.

With the aides as divided as their bosses on President Obama’s signature initiative, their typically tedious weekly session turned hotly spirited. So the Clinton White House veterans — John D. Podesta, a former senior adviser; Steve Ricchetti, a Congressional lobbyist; and Chris Jennings, a health policy aide — homed in on their ultimate lesson of the failure 15 years ago, that there is a political cost to doing nothing.

In 1994, Democrats’ dysfunction over fulfilling a new president’s campaign promise contributed to the party’s loss of its 40-year dominance of Congress. Now that memory is being revived, and it is the message the White House and Congressional leaders will press when lawmakers return this week, still divided and now spooked after the turbulent town-hall-style meetings, downbeat polls and distortions of August.

Republicans early on united behind the lesson they took from the past struggle, that they stand to gain politically in next year’s elections if Democrats do nothing. But the Democrats’ version similarly resonates with all party factions, giving Mr. Obama perhaps his best leverage to unify them to do something. In now-familiar financial parlance, this one is “too big to fail.”

“Certainly if you undercut your own leadership, that shortens the honeymoon and could possibly even cripple the administration,” said Representative Jim Cooper of Tennessee, a Democrat and member of the fiscally conservative Blue Dog Coalition who opposed the Clinton plan and has criticized current efforts. “And no one here wants that.”

That 15-year-old lesson underscores how much the Clinton debacle has defined Mr. Obama’s drive for his domestic priority from the beginning, providing a tip sheet for what not to do. Even Mr. Obama’s decision to address a joint session of Congress on Wednesday night to jumpstart his health initiative left some aides wary, given the inevitable parallels with Mr. Clinton’s September address 16 years ago to introduce his ill-fated plan.

Before Mr. Obama was elected, advisers began debriefing Clinton veterans to draft “lessons learned” memorandums. According to interviews with more than a dozen participants in the debates then and now, those lessons have helped the president’s proposals progress further through Congress’s committees than the plan advocated by Bill and Hillary Rodham Clinton did. All the while, the administration has held the tentative support of powerful associations for doctors, nurses, seniors, hospitals, drug makers and, as Mr. Obama recently put it, “even the insurance companies,” which did the most to defeat the Clintons.

But Mr. Obama’s performance has also raised questions about whether the administration has drawn too much from some lessons and underestimated some hurdles unique to today’s battle.

The losses of two important confidants — former Senator Tom Daschle’s withdrawal as Mr. Obama’s choice for health and human services secretary amid a tax controversy, and Senator Edward M. Kennedy’s long illness and death — have been “incalculable” setbacks for pushing legislation through Congress, said a top aide to Mr. Obama. Neither the House nor the Senate met his deadline for passing legislation before August.

Yet even if the administration did everything right, drafting legislation this complicated is never going to be easy.

“That period of defining the issue and developing the pieces and the resources to actually legislate is a relatively smooth river,” said Charles Kahn, an insurance industry lobbyist in the 1990s who now represents for-profit hospitals. Once Congress starts filling in the details, he continued, “then you hit the rapids. And they’ve hit the rapids now.”

Mr. Obama has two disadvantages that Mr. Clinton did not. The deep recession has stoked concerns about deficits, and moderate Republicans willing to cut deals are nearly extinct.

But Mr. Obama also has advantages flowing from his election by a 53 percent majority — the highest number for a Democrat since 1964 and 10 percentage points more than Mr. Clinton won. Congressional Democrats, while hardly of one mind, are still more unified behind him than they were behind Mr. Clinton, committee leaders are more respectful and Mr. Obama is richer in campaign money and grass-roots support.

Add to that, Democrats say, the benefits of the lessons of the Clinton era:

Lesson 1: Failure Is Not an Option.

As the Clinton-era veterans attest, and the Obama team is now arguing to Democrats, voting for a health bill might be difficult politically, but doing nothing at this point would be worse.

“When a party fails to govern, it fails electorally,” said Rahm Emanuel, a former Clinton aide who now is Mr. Obama’s chief of staff.

Lesson 2: Know your audience — insured taxpayers.

Even as a candidate, Mr. Obama showed that he was trying to avoid his predecessor’s mistakes...

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