Conner Strong

House Bill Summary 11/18

NOVEMBER 18, 2009

House Ready to Pass Healthcare Reform Bill

Democratic disagreements on abortion, immigration and the overall cost of healthcare reform have delayed a House vote on the health care overhaul bill until likely Saturday, November 7th. House Speaker Nancy Pelosi (D-CA) hopes to resolve these open issues and secure the minimum 218 vote needed to pass the bill. In the event that sufficient votes are not secured it is likely the vote will simply be delayed.

Congressman Bart Stupak (D-MI), an anti-abortion Democrat, claims to have as many as 40 Democrats willing to vote against the House bill if he is not allowed to offer an amendment that specifically outlaws federal funding for abortions in the new national exchange and the public option. In addition, some House members want to add an amendment prohibiting undocumented immigrants from buying health insurance through the exchanges even if they pay with their own money.

Finally, the fiscally conservative House Democrats or "Blue Dogs," remain concerned about the $900 billion price tag and continue to raise concerns that the bill does not address the issue of cost in the short or long term. Prior to any vote, Speaker Pelosi has to contend with these and other factions in the House that present challenges to final passage.

A Republican Alternative

House Republicans, regularly criticized for not proposing a plan of their own, recently released a plan that would expand health savings accounts, increase funding for state high-risk pools and cap jury awards in medical malpractice cases at $250,000. Individuals and small businesses could pool resources to purchase insurance jointly, and consumers would be allowed to buy coverage across state lines. Instead of a national exchange, the Republicans plan would create state-based "finders" to help people shop for coverage. It is unlikely the Republican bill will garner enough support to gain any serious traction.

The Latest in the Senate

In the Senate, Majority Leader Harry Reid (D-NV) continues to wait for the Congressional Budget Office (CBO) to release its estimate of the revised Senate bill that includes a number of scenarios on several controversial issues. These include a government or public option that would allow states to opt out. Reid is hoping that the total cost of the bill will be less than the $900 billion stipulated by President Obama and that it will not add to the federal deficit.

Senate moderates including Senators Olympia Snowe (R-ME), Blanche Lincoln (D-AK), Ben Nelson (D-NE) and Joe Lieberman (I-CT) talked last week about a fallback plan that would trigger a government plan if private insurers were not able to provide affordable coverage by a certain established date. Majority Leader Reid has not yet stated whether the bill will include an employer mandate or a tax on higher-cost coverage (commonly called the Cadillac plans). In the Senate, the two main committee bills still need to be consolidated so that the full Senate may debate the issue.

Conner Strong regularly monitors the latest developments with national healthcare reform. Check our web site every day for the latest information on what is happening in Washington and how it may impact your business.

 



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