While "Cash for Clunkers" moved through the Senate with seemingly little resistance this week, health care reform sputtered along as the August recess loomed. Controversy over "orchestrated" town hall meeting disruptions seemed to garner more headlines than substantive health care reform activities. Below are significant developments this week in health care reform:
Senate Finance Committee:
On August 6th, the Senate left for their summer break with no deal in the Senate Finance Committee. That same day, the Committee's "Gang of Six" met with President Obama to discuss the on-going negotiations. A key negotiator in the process, Republican Senator Olympia Snowe, has fended off criticism among her Republican colleagues that their concerns are being distorted and asked the President during the meeting to "lessen the concerns" over whether the reform legislation will become a partisan effort.
The Committee leaders have agreed to meet over the break and Finance Chair, Senator Max Baucus, has set a deadline of September 15, for passing a bill out of the Committee. Key considerations in the discussions are whether a non-profit cooperative can work in lieu of a government-run public option. Nancy-Ann DeParle, Director of the White House Office of Health Reform, stated this week the President would consider the cooperative model as long as individuals have choice and the options are affordable. There have also been discussions regarding the taxation of high cost or "Cadillac" health plans, which is now estimated to cover about 7% of the U.S. population. One version would require plans that cost over $8,000 for individuals, or $21,000 for families, to be subject to an excise tax of 35% beginning in 2013. Employers who self-insure or insurance companies would pay the tax.
HELP BILL:
The Senate Health, Labor, Education and Pension Committee's Affordable Health Choices Act of 2009 ("AHCA") continues to wait pairing with its legislative counterpart from the Senate Finance Committee. Discussions will continue through the August recess. Meanwhile, the Senators supporting the ACHA continue to face increasingly vocal opposition to the ACHA; specifically, the creation of a public option, and above all, the potential cost.
HOUSE (Affordable Health Choices Act H.B. 3200):
Last Friday, the House Energy and Commerce Committee passed their version of H.R. 3200 (America's Affordable Health Choices Act of 2009) after a compromise was reached with conservative Democrats, known as Blue Dogs. The compromise centered on keeping costs down, not tying a public insurance option to Medicare rates, and broadening the employer mandate exception to benefit small employers. Upon return from the August recess on September 7, the three versions passed by the Ways and Means, Energy and Commerce, and Education and Labor Committees will be reconciled in preparation for a floor vote.
Meanwhile, Henry Waxman (D-CA), Chairman of the Energy and Commerce Committee, has reiterated that House lawmakers were not part of, and are not bound by, the deal reached between the White House, the Senate Finance Committee and PhRMA, a powerful drug industry lobbying group. Echoing these sentiments, Speaker Nancy Pelosi (D-CA) has said that the House plans on cutting more costs in health care, including more from the drug industry than the $80 billion agreed to by the White House, the Senate Finance Committee and PhRMA.
President Obama:
The Obama Administration stepped up its campaign against health reform misinformation with blog activity and webcasts targeting a number of health reform questions. President Obama also spoke about the impact on health reform to Veterans in a speech to launch the Post-9/11 GI Bill.
Speech by President Obama
Webcast by Linda Douglass, the White House's Communications Director for Health Reform
Secretary Sebelius' Webcast on Health Reform Myths
Visit our Health Law Broadcast at hallrender/reform for a comprehensive listing of health care reform resources. Also sign up for health care reform alerts and periodic updates as we continue to monitor this important issue.
| 
