U.S. President Barack Obama named Kansas Governor Kathleen Sebelius as health and human service secretary on Monday, after his first choice withdrew nomination due to tax issue.

Obama noted at a press conference that the current economic crisis heightened the urgency of the challenge in the U.S. health care, which has been one of the fastest-growing expenses in the federal budget.

"Health care reform that reduces costs while expanding coverage is no longer just a dream we hope to achieve; it's a necessity we have to achieve," he said.

Obama said that Sebelius, daughter of a Democratic governor and a Republican congressman, embodies a commitment to bipartisan accomplishment, and has been on the front lines of health care crisis as a governor.

"I can think of no greater honor than to join you in this effort to transform our health care system and improve the lives of all Americans," said Sebelius at the press conference.

The 60-year-old female governor was born in Cincinnati, Ohio, and earned a Master of Public Administration degree from the University of Kansas.

She was elected to the Kansas House of Representatives in 1986 and became state governor in 2002. Four years later, she won a re- election.

After Obama won presidential elections last year, Sebelius was considered to be on the short list for nomination to a position in his cabinet, but she officially withdrew her name from consideration on Dec. 6.

Her nomination came after Obama's first choice for health secretary, Tom Daschle, withdrew his nomination over tax issue last month.

At the Monday press conference, Obama also tapped a former Clinton administration official, Nancy-Ann Deparle, as director of the White House Office on Health Reform.

According to the president, Deparle, commissioner of the Department of Human Services in Tennessee, has seen "firsthand our health care system's impact on workers and families," and handled budget matters for federal health care programs during the Clinton administration.

"I have absolute confidence in her ability to lead the public and legislative effort to ensure quality, affordable health care for every American," Obama said of his choice.

Obama has been advocating health care reform since his presidential campaign last year. In his first address to the Congress last week, he listed health care as one of the three federal budget priorities to realize universal health care insurance for Americans.

Nominations of Sebelius and Deparle completed Obama's cabinet formation for the second time. After his first round of announcements of cabinet member designees, several of them withdrew nominations for reasons including tax issues, corruptions case investigation and difference with the president over key policy issues.

(Xinhua News Agency March 3, 2009)