New Health Care Plan Nixes "Public Option"

Washington Post: Senate Proposal Mandates Health Insurance For Most Through Consumer Co-Ops And Medicaid

(Washingtonpost.com)  This story was written by Lori Montgomery and Shailagh Murray.

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A draft proposal in the Senate to overhaul the nation's health-care system would require most people to buy health insurance, authorize an expansion of Medicaid coverage and create consumer-owned cooperative plans instead of the government coverage that President Obama is seeking.

The document, distributed among members of the Senate Finance Committee yesterday afternoon, addressed none of the funding questions that have consumed House and Senate negotiators in recent days. But it included an array of coverage provisions that were drastically scaled back from earlier versions, as lawmakers seek to shrink the bill's overall cost. The proposal, for instance, would reduce the pool of middle-class beneficiaries eligible for a new tax credit meant to make insurance more affordable.

The absence of a "public option" marks perhaps the most significant omission. Obama and many Democrats had sought a public option to ensure affordable, universal coverage, but as many as 10 Senate Democrats have protested the idea as unfair to private insurers. In its place, the draft circulated yesterday outlines a co-op approach modeled after rural electricity and telecom providers, subject to government oversight and funded with federal seed money.

Yesterday, Senate Finance Committee Chairman Max Baucus (D-Mont.) met with four Republicans, including Sen. Charles Grassley (Iowa), the ranking GOP member on the panel, along with two Democratic colleagues in an attempt to find bipartisan consensus. Baucus dubbed the group "the coalition of the willing."

Meanwhile, in the House, Democrats are exploring a range of funding options, including a surtax on the rich and an increase in the payroll tax imposed on all U.S. workers. The list also includes new taxes on sugary drinks and alcohol, along with broader levies, such as a national value-added tax of up to 3 percent.

The Senate's preferred option -- taxing the health benefits that millions of Americans receive through their employers -- is also on the House list. So is Obama's favorite idea: limiting the value of itemized deductions for the nation's wealthiest 3 million taxpayers.

Rep. Richard Neal (D-Mass.), chairman of the Ways and Means subcommittee charged with developing a financing plan, said lawmakers have not "embraced any particular source of revenue." But he confirmed that big, broad-based taxes like the payroll tax and a value-added tax are under discussion, mainly because they have the potential to raise "a lot of money" for an expansion of health coverage expected to cost more than $1 trillion over the next decade.

The House will not unveil a financing plan until after the July 4 recess, Neal said, though House leaders were expected to release an outline of the rest of their plan today, with a goal of putting a bill to vote later this summer. The Senate is aiming to debate its legislation in July as well, and is seeking a bill that would cost less than $1 trillion.

Maintaining that tight schedule could prove difficult, though, because daunting issues remain in both chambers. One area of contention is the extent to which private employers must subsidize public coverage for their workers if the companies don't offer their own plan or if the premiums are unaffordable. The Congressional Budget Office has warned that if lawmakers don't find the right formula, employees may flee their company plans for federal coverage, sending government costs soaring.

The draft in the Senate committee spells out one possible solution: It would require employers to pay 50 percent of Medicaid costs for workers enrolled in the low-income program and 100 percent of the cost of health-insurance tax credits for eligible employees. Workers could forfeit employer coverage only if the cost exceeds 12.5 percent of their income.

The draft, earlier reported on by washingtonpost.com blogger Ezra Klein, spells out four options for requiring employers to provide coverage, with exemptions for firms with up to 200 employees. It would fine individuals who do not purchase coverage, though certain groups, including Native Americans and undocumented workers, would be exempted.

It also would loosen eligibility requirements for Medicaid, a proposal certain to alarm many governors who are grappling with budget crises.

[sjc_1]

Optional National Health Insurance, the ONLY rational way to go at this time. Let public and private compete for the best policy at the best price.

[PJG_R]

It's funny,, Republicans don't want a washington bureacrat to run their health insurance but they have no problem with a corporate executive running their health insurance. They don't want they're taxes going up to pay for health care but they don't seem to mind when private health insurance costs have trippled in the past 6 years. They don't care who takes our money as long as it's a corporation and not the government. I'm a working man, have been all my life. I pay my bills and my taxes, I'm not looking for hand outs but I know when I'm being robbed and $150.00 coming out of my paycheck per week just so I can send my kids to the doctors for regular check ups is ridiculous. And no amount of Glen Beck, Rush Limbaugh, Sean Hannity horse crap is going to convince me otherwise.

[imalexdude]

They can't REQUIRE me to buy health insurance just so I can breathe air in my country. They can go F#@& themselves!

[sjc_1]

"Democrats had sought a public option to ensure affordable, universal coverage, but as many as 10 Senate Democrats have protested the idea as unfair to private insurers."

I want to know who those 10 are. What has been unfair is the billions of dollars siphoned off by insurance companies that deny care and cancel policies to their rate payers.

[toldyouso29]

As usual, the government is trending towards FUBAR on this issue as well. Let the Senators and the House members renounce their automatic pay raises and pensions, if they can't last the full 20 years to be vested, they should get nothing just like it is in other American jobs--and let them and their families be the first to try and join a co op for health insurance--the rest of us can follow suit after they use it for a few years and we all see how it is working for them.

As for the 10 Dems who protest the public health care insurance in the name of helping private insurance--follow the money and see who the biggest contributors to each of them is--bet Dodd is one of the 10.

[Aldymac]

I know people in Briton, New Zeland, Australia and Canada who can't for the life of them figure out why the Americans think they need socialised health care. "You have the best in the world, why do you want less"? The answere I can come up with that best fits is; the polititions and insurance companies will get even richer from it, thats all they really care about.
Most Americans who can't afford insurance, really can't afford it, because it is the insurance companies themselves who keep the rates going up, the corruption in the insurance companies has yet to be addresed, perhaps after it is socialised the corruption will be totally exposed, but by then, no one will be able to stop it, or the political corruption behind it.

[tautomer]

The proposal, for instance, would reduce the pool of middle-class beneficiaries eligible for a new tax credit meant to make insurance more affordable.
_______________________________________________________________________

There goes Obama reneggin on the "Middle Class"..LMAO

[sjc_1]

Optional National Health Insurance, do NOT make health insurance mandatory. Allow the public and private sectors to compete to provide the best policy at the best price.

[HenryW]

For several years I've watched my retired Father, Mother and younger sister suffer mightily at the hands of seemingly uncaring insurers who don't care whether they lived or died. I personally have fought on their behalf to obtain the necessary care they required and deserve - most often to no avail! Let me be clear - I am a life long Democrat?however, I will vote out of office ANY Democrat who fails to support a Public Health Care option - period!!!! In my opinion, this is the single most important issue facing our generation. Failure is not an option!

[mrzerato]

The Republicans came out with a new health care plan. It did not have any costs attached to the plan, but they said it was better than the Democrats system. Sources revealed that the plan included that everyone eating an apple a day to stay away from the Doctors.

The Democrats in the room were stunned

film at 11

[gravyboat3000]

impeachbhb...

You need to provide more details about your Mom's situation. I've worked in healthcare for over 20 yers, and, for the most part, working with patients who had Medicare or MediCaid coverage only.

Usually, if there is an issue with covering a procedure or following a physician's orders fully, all it takes is a call or letter from the physician who is caring for the patient.

And blaming President Obama for Medicare is just stupid, did he invent the curreent system?

No, as a matter of fact, he's attempting to fix the short falls of the current system.

[nikosk11]

Reid, Pelosi, and the rest of you who are in the back pocket of the health care industry, YOU ARE FIRED!!!!!

[impeachbhb]

If you want to get an idea of what it would be like to be on a government plan, talk to someone on the current medicare plan.
My mom has a hip problem and was told she would need physical therapy in order to continue to be mobile. She is 83 years old.
Medicare rationing only allowed her two weeks when the doctors were saying her condition would require several more weeks. Within a short period of time, she became unable to walk without assistance. After a denied appeal to medicare, my family managed to come up with the funds to pay for more therapy. Today she is living at home on her own and doing well.
Visit some hospitals or nursing homes and you will find similar stories of rationed health care.
For my part, the Socialist in Chief can stick his healthcare plan wher the sun don't shine.

[starleo146]

Congress!!! what laws have they passed has helped the little people in the last `12 years just tell me that. Here the White House is asking for real change to health care, and where are our lawmakers standing at the door with the palms open wide to the Insurance and pharmaceutical lobbyist. The day they go behind closed doors with AARP that are advising, well we were there, done that remembe,r and AARP helped themselves more than the elderly in this country.No!!! CONGRESS is to blame, and I think a law giving them only 2 terms to serve just as a President should be made, that would clean up this house and senate, and get rid of all the dead weight that supports there palms more than the people they represent

[carolanninwv]

Gee, all health care is rationed. My Insurance will only let me go to physical therapy 14 visits (two weeks)and I had to pay a copay of $25.00 per visit.I also pay $280.00 a month in premiums for family coverage. This is an empolyeer sponsered insurance so they pay into it too. I've worked for them for 30 years. Your moms not doing that is she? Look at it this way at least she has something. I know a 27 year old who works 40 hrs a week and his employee does not offer a insurance plan. I wish people would get their capitalism out of my democracy!

[pandamonium6]

Let's get to the real issue. Repubs do NOT want everyone to have equal access to health care. They will continue to invent excuses just to stall the process. The latest one..."If everyone has health care, then we will all have to wait to see a doctor because there are not enough health care professionals to see everyone...Then we will be just like Canada." NOOOOOOO then everyone will get healthcare. Stop being so selfish and just try to think of your neighbors Repubs! You are not being asked to pay just to share the service.

I thought we were One Nation Under God and not One Nation for the Rich and One for the Poor.

[6591Hou]

Did you not read the story? The hold-up is not repubs, it's dems - reread where the unfairness to private insurers comes up. The medical insurance industry does not want to lose it's cash flow and they're spreading the green around on capital hill.

[cdegolier]

Republicans are against forcing the working class, who pay for their health insurance, to pay for the non working who are already covered under medical. This idiot is going tax the middle class into the poor house. And yes, idiot we are being asked to pay for others health insurance with the added value tax, increases on payroll taxes and taxing health benefits. All so people who sit on their a##es all day get even better coverage. And I am not rich by any means, just responsible and hardworking.

[gravyboat3000]

"Consumer owned co-ops"?

LMAO

Yeah, THAT'S GONNA WORK.

S.O.S, as far as any chance at REAL change for healthcare in this country.

Sorry, working poor of America, you are once again S.O.L...