The withdrawal of Tom Daschle’s nomination to be secretary of Health and Human Services is an opportunity for President Obama. The president says he wants to build reform of health care on a broad base of bipartisan support and consensus. In fact, Daschle said that was his goal as well, but conservatives never really believed him. The divisive issue in health care is cost-control, and Daschle’s book is a battle cry for the Left’s point of view that only the federal government, not markets, can bring financial discipline to the system. Then there is the matter of entitlements. Obama says he plans to build bipartisan support to finally address the nation’s long-term budgetary problems, which stem primarily from the escalating costs of Medicare and Medicaid, as well as Social Security. If he is serious about tackling entitlements, he needs someone at HHS who actually wants to do it. There is nothing in Daschle’s record to indicate he was interested or prepared to make tough decisions which would alienate his base of political support.

So what does this mean for Obama’s selection criteria? He should be looking for someone with long experience in health-care policy with a history of working across party lines to pursue practical solutions. The person also needs to have an appreciation for what it would take to build market-based reforms in health care that can slow rising costs even while broadening access to care for households with lower incomes. I can think of two people who would be excellent choices: Mike Leavitt and Gail Wilensky. Secretary Leavitt was an outstanding HHS secretary. He is a strong advocate for an activist reform agenda. He knows there are problems that must be solved, and soon. Having spent four years already in the job, there would be no learning curve. As a former governor of Utah, he also understands political limitations. And he understands the entitlement problem like few others.

Gail Wilensky headed the HHS agency overseeing Medicare and Medicaid in the administration of Bush 41. She is an advocate of markets, but is grounded in practical and political reality too. She has worked with Democrats on countless advisory bodies to advance consensus reform positions. And, like Leavitt, there would be no learning curve.

I have no illusions that President Obama is thinking about his HHS choice in these terms, but he should be. The perception of his governing style is starting to harden. He talks moderation and consensus, but his policy agenda — so far — appeals only to his political base of support. There is no way he can do what needs to be done on the budget, in health care, or on entitlements if he relies exclusively on the traditional Democratic political coalition. Now is the time to go against all expectations and select someone for HHS that demonstrates a genuine willingness to take political risks.

– James C. Capretta is a fellow at the Ethics and Public Policy Center and a health-policy and research consultant.