Bush focused on health insurance after a recent government report projected that health care spending would double by the year 2016.
The president said that current policy discriminates against those who buy individual health insurance. They don't get the same tax advantages as those who buy health insurance through their employers.
Recently, a group of 10 senators -- five Republicans and five Democrats -- wrote the president and told him they agreed that current tax rules for health insurance disproportionately favor the rich while promoting inefficiency.
The president said he also wants to support governors who come up with innovative ways to help their residents get affordable health insurance coverage.
Under his proposal, states that put in place a basic health plan for all of their residents would get access to what he calls "affordable choice grants." The grant money would come from programs that now reimburse providers when they care for the indigent.
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