AP: Public Option Nixed from Health Bill

Senate Committee Said to Jettison Gov't Plan and Employer Mandate, Both Top Democratic Priorities

(AP)  After weeks of secretive talks, a bipartisan group in the Senate edged closer Monday to a health care compromise that omits two key Democratic priorities but incorporates provisions to slow the explosive rise in medical costs, officials said.

These officials said participants were on track to exclude a requirement many congressional Democrats seek for businesses to offer coverage to their workers. Nor would there be a provision for a government insurance option, despite President Barack Obama's support for such a plan.

The three Democrats and three Republicans from the Senate Finance Committee were considering a tax of as much as 35 percent on very high-cost insurance policies, part of an attempt to rein in rapid escalation of costs. Also likely to be included in any deal was creation of a commission charged with slowing the growth of Medicare through recommendations that would take effect automatically unless overturned by Congress.

"We're going to get agreement here," Sen. Max Baucus, D-Mont., the Finance Committee chairman, said Monday. "The group of six really wants to get to 'yes."'

Obama has outlined two broad goals for legislation he is struggling to win from Congress: expansion of health insurance coverage to millions who lack it, and reining in increases in costs.

Like bills drafted by Democrats, the proposal under discussion by the six Finance Committee members would bar insurance companies from denying coverage to any applicant. Nor could insurers charge higher premiums on the basis of pre-existing medical conditions.

But it jettisons other core Democratic provisions in a reach for bipartisanship on an issue that has so far produced little.

The effort received a boost during the day from the U.S. Chamber of Commerce, normally a close ally of Republicans. In a letter to committee leaders, the business group called for the panel to "act promptly, preferably before" the Senate's scheduled vacation at the end of next week. In doing so, the business organization dealt a blow to the Senate Republican Leader Mitch McConnell of Kentucky and other GOP lawmakers who have called repeatedly for Democrats to slow down.

In yet another boost for the drive to enact legislation, PhRMA, which represents drug companies, has purchased more than $500,000 worth of television ads to air during the week in nine states.

Obama's top domestic priority has suffered numerous setbacks in recent weeks, and Republicans have stepped up their criticism. A Senate vote has been postponed until September. Administration and Democratic leaders hope to show significant progress before lawmakers begin their monthlong recess in hopes of regaining momentum.

In the House, the leadership sought to allay concerns among the rank and file. Speaker Nancy Pelosi, D-Calif., said, "We're on schedule to do it now or do it whenever," when asked whether the House would complete its bill before lawmakers leave at the end of the week for their summer break.

In the Senate, officials stressed that no agreement has been reached on a bipartisan measure, and said there is no guarantee of one. They also warned that numerous key issues remain to be settled, including several options to pay for the legislation. They spoke on condition of anonymity, saying they were not authorized to discuss matters under private negotiations.

They said any legislation that emerges from the talks is expected to provide for a nonprofit cooperative to sell insurance in competition with private industry, rather than giving the federal government a role in the marketplace.

Obama and numerous Democrats in Congress have called for a government option to provide competition to private companies and hold down costs. White House spokesman Robert Gibbs said during the day, "I don't believe that the president has come down (on) one versus the other in terms of denoting co-ops equal to or above public option."

One of the senators involved in the talks, Olympia Snowe, R-Maine, confirmed that co-ops are the preferred approach. "It's safe to say that'll probably remain in the final document," she said.

Officials also said a bipartisan compromise would not subject companies to a penalty if they declined to offer coverage to their workers. Instead, these businesses would be required to reimburse the government for part or all of any federal subsidies designed to help lower-income employees obtain insurance on their own.

"We don't want to undermine (employer coverage) or create a perverse incentive where employers potentially drop coverage because their employees can get subsidies," Snowe said.

Democratic-drafted legislation in the House includes both a penalty and a requirement for companies to share in the cost of covering employees.

The senators involved in the negotiations are all members of the Senate Finance Committee, and include Baucus and Chuck Grassley, R-Iowa, the senior Republican. Others participating are Democratic Sens. Kent Conrad of North Dakota and Jeff Bingaman of New Mexico, and Republicans Snowe and Mike Enzi of Wyoming.

They have met for hours in recent weeks in Baucus' office, joined by aides and outside advisers such as actuaries summoned to explain arcane details of insurance. Douglas Elmendorf, head of the Congressional Budget Office, has also attended.

Baucus has been under intense pressure from the White House and Senate Democrats in recent weeks to convene the committee to vote out legislation. He has so far declined to do so, opting to give the bipartisan negotiations as much time as needed to succeed.

Several Democratic officials have said he recently pledged to Majority Leader Harry Reid, D-Nev., that the committee would meet next week to vote on legislation, a timetable that implies time is growing short for the bipartisan group to wrap up its work.

Much of the cost of the proposal would come from curbing the growth in fees to insurance companies and other providers under Medicare.

But congressional aides in both parties as well as lobbyists said a proposal limiting Flexible Savings Accounts to $2,000 annually is also a strong possibility. FSAs permit the use of pretax income to pay for items such as health care and child care.

Negotiators also are considering fees on the manufacturers of medical devices and on the makers of both brand name and generic drugs coming onto the market.

To cut down on the cost of the bill, the bipartisan group may include only one year of a long-term plan to adjust reimbursement fees under Medicare.

Officials said the legislation under discussion in a series of private meetings would likely cost under $1 trillion, include an expansion of Medicaid, and provide federal subsidies for individuals and families up to 300 percent of poverty to spread health care more broadly.

Individuals would have a mandate to buy affordable insurance.

[Serving_you]

Oh I forgot, for all of you out there that placed meaningful blog entries and comments thank you. That little rant was not directed towards you. I would also like to thank those of you that placed references so that we can complete a little more research. It is greatly appreciated.

[Serving_you]

I must say that you are all a bunch of silly ass people. We sit here in places like Afghanistan giving you the freedom to complain about everything we are here to defend. I am sorry but I will tell you that I am embarrassed to call you my country men/women. You sit there on your little computer and blame each other. You slander the Democratic party, You slander the republican party. You take advantage of the freedoms I PUT MY LIFE ON THE LINE FOR. You criticize our government, our people, and make your selves look like jack ***** all so that you can talk trash to someone else. You don't care about health care. You don't care about gun laws. You care about yourselves our country was founded on SELFLESS SERVICE. Where is yours? Where are you contributing, do you truly consider sitting on your fat lazy ***** complaining that you don't get enough or you are ok with Socialism "where is my hand out". I will tell you this socialism has destroyed countries that were stronger than the state of ours right now. Ohh social security has worked great for 75 years. Hey idiot have you not heard that social security is in the hole. You people don't even know what the hell you are talking about. I sit here at Forward Operating Base Orgun-E watching my fellow Americans Die like my two brothers on the 4th Of July non the less and all you can worry about is where is my hand out, my party is better than your party. Obama sucks, no he doesn't. Wake up America all of you greedy bastards are the reason we are in the toilet. It is not Bush, It is not Obama. It is all of you not paying a bit of attention to anything that goes on around you. A bunch of selfish little children you are. I am embarrassed to be over here putting my life on the line for all of you ungrateful little pricks.

[glgemlo]

The day ALL of Congress -House-Senate- Republicans-Democrats- EVERYONE,
has the same Health Care coverage as the working class in the US., our Health Care problems - solutions will magically be resolved.
Let CONGRESS get REAL.

[kenhamlett]

NOW we have the outline for a new betrayal of the American people. The Senate not liking anything that threatens the unbridled profits of big medicine and insurance counters tell their preferences on how to gut the entire plan. Is this to give hope to all of the uninsured and under insured people of this country? Of course not. The Senate plan opens up more ways to exploit the people and to hell with the sick and injured.
It looks like we will have a new roster of candidates to be removed from office in 2010 and 2012. They just never learn. I will start the response with an early Good Riddance to the supporters of this Senate alternative.

[Warmonger101]

I wish Obama would have said this:

THE ISSUE ISN?T ABOUT ME. I HAVE GREAT HEALT CARE COVERAGE.

I WOULD LIKE TO GIVE YOU THE SAME GREAT COVERAGE I HAVE. IF I?M UNSUCESSFUL, IT ISN?T BECAUSE I DIDN?T TRY.

ASK YOUR CONGRESSMAN, OR SENATOR TO EXPLAIN WHY CAN?T YOU HAVE THE SAME COVERAGE THAT THEY DO.

IF YOU HAVE SERVED YOUR COUNTRY, AS A POLICE OFFICER, A FIREMAN, A SOLDIER OR AS A CITIZEN WHO HAS SUPORTED YOUR COUNTRY A LIFETIME, ASK WHY CAN?T YOU HAVE THE SAME QUALITY HEALTH CARE COVERAGE AS YOUR LOCAL, STATE AND FEDERAL REPRESENTATIVE.

ASKED THEM TO EXPLAIN WHY THEY HAVE?..AND YOU DON?T.

IF THEY CAN?T EXPLAIN IT TO YOUR SATISFACTION, THEN YOU MUST ASK YOURSELF, DO THESE PEOPLE WHO WOULD DENY ME ACCESS TO THE SERVICES THAT ARE AVAILABLE TO THEM CONSIDER ME A 2ND CLASS CITIZEN.

ARE THIS INDIVIDUALS TRULY REPRESENTING YOU OR YOUR FAMILY?

[sjc_1]

Without a public option and large employer mandate there is NO reform...period. Don't pretend that some non profit coops are going to do a darn thing, because they will NOT and everyone knows it.

[noloyalisti]

Hey cydygitt1, I think you must get the Hightower Lowdown (you used congress critters). I sure wish a LOT of these people on here read that publication.

[noloyalisti]

Why are we STILL putting up with greedy, rich, right wing corporations rationing our health care? Why are we still paying for the rich to have health care while 47 million do not. When are we going to stop their evil corporate ways? First we have to admit this is a fascist country, I guess.

[cydygitt1]

Research Firm Cited by GOP Is Owned by Health Insurer ...Jul 22, 2009 ... The political battle over health-care reform is waged largely with ... is that the Lewin Group is wholly owned by UnitedHealth Group, ... Lewin Group, Insurer-Owned Consulting Firm, Often Cited in Health Reform Debate ...
www.washingtonpost.com/wp-dyn/.../AR2009072202216.html

[noloyalisti]

I am outraged that the white wing wackos who run the big, greedy, rich, uncaring corporations are forcing us to pay for health care for the rich. I am SICK of it.

[hungry1968-16]

by endurorob July 28, 2009 10:11 AM EDT

You are losing it Hingry. You did not dispute even one of his claims. All you did was call him names. That is generally the reactionof someone in an indefensible position.







You want me to dispute the rumors and accusations being FABRICATED and spread by the Fixed News channel and spread by lemmings like Joe?

Here you go enduro - dispute this: There are purple giraffes on Mars.

Much like Fox News and the nonsense they fabricate, this statement is unprovable, correct?

Now do you realize how foolish your post sounds?

[noloyalisti]

What part of "option" don't people understand. You can keep your current plan if you like it. However the master race the health insurance companies know that the public option will mean better and cheaper care and the greedy slime won't get their multi-million dollar bonuses anymore.

[tfchange]

Don't be fooled by above, this is just another example of flag waving nut jobs that adhere to the "love it or leave it" philosophy. Fellow physicians, I know in Europe, make as much as I do, and have a lot more free time and vacation time. I live, and work, in the U.S. because this is my home, I'm an American (I can even show you my real birth certificate!) and I love my country. We just need to consider other countries ways (health and education) and apply in any way that may benefit our citizens. This includes a "public option" in my (somewhat educated) opinion.

[noloyalisti]

This is freakin' unacceptable and an outrage. Congress us bought and paid for. How long are we going to put up with the rich corporations running EVERYTHING? This fascist country is For, By and Of the Corporation.

I myself am ready to take drastic action to stop them.

[Bob-SinglePayerActivist]

The U.S. Congress has failed us many times over the years.
http://www.medicareforall.org/pages/World_View#worldactivity

The private health insurance companies have controlled public opinion many times over the years with their propaganda.
(I could have a web page on that list too; they are very good at controlling our opinion so that we vote against our own interests.)

Our health performance is in the toilet.
http://www.medicareforall.org/pages/Real_People
And ... life expectancy: 30th as per World Health Organization; 50th as per the CIA

Other countries' people go to the doctor much more often. They live longer. What's the main difference? National health insurance: what we've been taught to

fear while other free-market countries reap its benefits.

Sign up here: http://www.medicareforall.org/pages/Sign_Up

If you do not sign up, then what? Well, as a very conservative friend of mine says: I hope that you like what you will get.

And ... what will you get? What the Massachusetts citizens already have. Many of them call it a Gestapo-like state. All of us will be forced (read: mandated, dictated) to buy private health insurance. Those who do not pay will be fined. Those who don't pay the fine will be guilty of tax evasion and face possible time in prison. If you want to read about what is happening in Massachusetts, then go here ...
http://www.masshealthlawtruth.org/

All the best for your health and health care. Perhaps I should write good luck for your health and your life and America and Americans. If Congress proceeds --- with or without a watered-down worthless public option plan --- then we are going to be in a world of hurt of more government (read: higher income taxes) and higher-than-ever costs for health care, mainly in the hands of for-profit companies, not to an expanded health care workforce, because more employers will be encouraging their employees to get care in other countries.

[cydygitt1]

Gotta just love that United Healthcare Group lobby, taking America right down the toilet for their GREED.

[noloyalisti]

This is NOT what I contributed too and what we voted for. It is obvious who runs the country and the government, the big corporations. As in most fascist countries like America, this is how it goes down.

I just can't believe we are so stupid that we can't even admit this to ourselves. What will it take for people to wake up from this right wing nightmarish takeover of EVERYTHING?

[cydygitt1]

Yep....America has been a fascist country under CONServitard policies and ideology for 30 years now, where corporate America dictates everything that happens for the almighty American dollar, just like in this joke of a for-profit health care reform that is listening to the well-funded insurance/pharmaceutical lobby.

[mary-miami]

There are thousands of people who have gone without a doctor's checkup for years...either their employer does not provide insurance or they simply don't have the money to pay for it. These people suffer illness, while the wealthy go to the doctor everytime they sneeze. This is immoral. Everyone has a right to healthcare...while we're at it, we should provide for dental and vision care as well.
Quality of life is as important as life itself.

[cydygitt1]

Exactly!

And to keep raising premiums for higher and higher record profits, these immoral for-profit insurance companies should be closed-down immediately and made to look for REAL work helping the middle class!

[jschmidt27]

The govt has proven it can't run a public option responsibily. Take a look at SS and Medicare both in serious financial trouble. Congress could never resist the pull to make public option plans cheap by pooring more Federal money into it, to win votes. Would the public option be subject to state insurance laws? If not that would already be a cost advantage. The plan would have forced anyone looking for individual coverage into the public option which stimies competition. And Congress ignored some costs that could be cut such as overllapping regulation between states and Federal, not allowing plans to compete across state lines, not streamlining claims across all insurers so there is one claim method or a claims clearinghouse. That would cut insurance company costs as well as providers. And taxing small business owners is sure to cut job growth. Incremental steps may be a better approach than a new govt agency and all the costs it incurs.Plus a cheap public option would surely put insurers out of business resulting in the govt controlling it all and rationing care. As we all knew the govt leaders cannot be trusted to do what is best for the country. The Blue Dogs were the only ones interested in what was best.

[cydygitt1]

"Take a look at SS and Medicare both in serious financial trouble."
---------------------------

Only because our congresscritters started stealing from these trust funds in 1969 under tricky dickie, to fund the Vietnam WAR and the military/industrial complex ever since!

The health care status quo is not an option today, no matter what the CONServitards try to tell us as they take more insurance company MONEY!

[jschmidt27]

I think Dodd a Democrat is a major receiver of health insurance companies funds as he did with financial lobbyists money as did Teddy before him. Lobbysist money is key to Democrats as well as Republicans;

[cydygitt1]

"Lobbysist money is key to Democrats as well as Republicans"
------------------------

Maybe so.....but most of the Dems besides the CONServitoidDems, are pushing for REAL reform with a public option, even though some form of single-payer UHC would be the best for America today!

[endurorob]

hungry1968-16 July 28, 2009 9:48 AM EDT
by Joe_NY_15 July 28, 2009 9:32 AM EDT
No one else in America needs a poll to know we don't want this healthcare bill.....what happened, I thought Democrats had total control and could pass anything anytime at will, without Irrelevant republicans....I guess the American people, including democrats don't want universal welfare.....no matter what polls you quote to further your agenda







You're too stupid to discuss anything with.

You watch Fox News instead of seeking the ACTUAL facts and information, so attempting to discuss anything with you is pointless.

You have the attention span of a 13-year old girl on a cell phone, the misinformation of the Fox News channel, and believe that everything boils down to "republicans / conservatives are ALWAYS RIGHT".

What makes you think that your childish posts are even worth reading?



You are losing it Hingry. You did not dispute even one of his claims. All you did was call him names. That is generally the reactionof someone in an indefensible position.

[tfchange]

As a rural physician, who has lived in Europe, I can assure all of you that socialized medicine is not the booga-boo you many of you fear it is. Sure there are problems, but our current problems are far worse. We NEED a "public option" to control "private healthcare options". I think I can best explain the problem with private healthcare by giving you the approx. percentage Private HC skims from every dollar they are paid, approx. 17%. Public plans skim closer to 5% and literally would save many billions of dollars. Check out what the CEO of your Private plan makes a year and see if you still want to support him/her. If you think our representatives are trying to veer away from a Public plan in YOUR interest you are sadly mistaken. Considering the millions of dollars that are funneled to our representatives from Private HC insurers on a DAILY basis, I will be shocked if our government acts in OUR best interests. We'll see.

[jsd330]

Why aren't you still living in Europe? Is it because doctor's don't make as much there.

[cydygitt1]

"If you think our representatives are trying to veer away from a Public plan in YOUR interest you are sadly mistaken."
-----------------------------

Yep...it certainly appears that our congresscritters are definitely not acting in our interests, and only for the for-profit insurance industry!

[jsd330]

Well instead of buying big screen TV's, fancy cars, ect. you'll just have to buy health insurance instead. That's the bad news, the good news is you can buy it through a Co Op.

[cydygitt1]

If this co-op idea is from the CON ARTIST republiCONS, it will only benefit the insurance industry through higher profits, since the GOP does NOT want to help middle class Americans with anything!