Washington, Aug 12 - President Obama has accused the opposition of scare tactics against a proposed health care overhaul, saying failing to fix problems in the current system would be the scariest outcome of all.

Addressing a supportive town hall meeting in New Hampshire Tuesday, Obama welcomed a 'vigorous' debate as part of the democratic process, but said people should talk 'with each other and not over each other.'

He criticised 'wild misrepresentations' by special interests trying to undermine health care legislation before Congress.

In particular, Obama rejected rumours that a health care bill passed by a House committee included setting up so-called 'death panels' to decide if senior citizens get treatment.

He called spreading such rumours a long-standing practice by opponents of health care reform, such as 'those who profit under the status quo.'

'What is truly scary, what is truly risky, is to do nothing,' Obama said, noting that premiums paid for health care coverage were rising three times faster than wages and that the government-run Medicare programme for senior citizens would run out of money within a decade.

He repeated past guarantees that a health care overhaul won't force anyone to give up health insurance they like and won't cut Medicare benefits, and he stood by his election pledge that he won't raise taxes on people making less than $250,000 a year.