The American Medical Association Thursday endorsed congressional Democrats' proposals for U.S. healthcare reform.

"We urge members of the House Education and Labor, Energy and Commerce, and Ways and Means committees to favorably report H.R. 3200 for consideration by the full House," AMA Executive Vice President and Chief Executive Officer Michael Maves wrote in a letter to House Ways and Means Committee Chairman Charles Rangel, D-N.Y.

President Barack Obama thanked the AMA for its endorsement of the healthcare reform proposal being developed on Capitol Hill.

"I am grateful that the doctors of the AMA have chosen to support health insurance reform that will lower costs, expand coverage, and assure choice and quality health care for all Americans," Obama said.

The AMA, the nation's largest physician organization, is backing the House bill because it will address Medicare payments for doctors, The Hill reported. Current payment formulas indicate physicians' Medicare fees will be cut by 21 percent in 2010.

The AMA stopped short of an unqualified endorsement of Democratic proposals, since the plan the Senate is considering does not call for permanent reform of the Medicare payment system, The Hill said.