By John Shaw

WASHINGTON (MNI) - White House budget director Peter Orszag Wednesday said that comprehensive health care reform is a "necessary but not sufficient" step to begin overhauling the nation's increasingly expensive entitlement programs.

Speaking at a health care conference, Orszag said the Obama administration believes that additional entitlement reform steps will be needed after health care reform is accomplished.

"More will be necessary" to reform entitlements," he said.

The White House budget chief said that the administration's fiscal year 2011 budget, which will be released in early February, will include some important budget reforms.

Orszag said the administration will have "a lot more to say in February" about overhauling the nation's entitlement programs.

Orszag said he is encouraged by both the general direction and many of the specific components of health care reform legislation moving through Congress.

"We are further along in getting comprehensive health care reform than ever before," he said.

Orszag said that critical cost containment provisions are in either the House or Senate health care bills. He cited provisions imposing a tax on expensive health care plans, creating a Medicare commission to keep long-term costs down and instituting a host of reforms to the health care delivery system.

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