By Thomas Ferraro and Donna Smith

WASHINGTON (Reuters) – Democrats pushing for a drastic overhaul of the $2.5 trillion U.S. healthcare system prepared for fresh battles on Thursday after President Barack Obama set out new details on his top policy priority.

Obama was scheduled to meet with his cabinet following his Wednesday address to Congress, which sought to overcome rising public skepticism over his ability to bring about healthcare changes that have eluded Democratic lawmakers for generations.

“He has righted the ship of the Democratic caucus,” said freshman Democratic Representative Gerald Connolly, adding that he believed Obama made “a cogent case for why moderate Republicans and others committed to trying to fix the broken healthcare system ought to rally to his cause.”

Republican reaction was far cooler, however, while the reaction of Wall Street would become clear when the stock market opens on Thursday. Read More.