Senate Finance Panel Passes Health Reform

(CBS/AP)  Updated at 5:25 p.m. ET

President Obama's plan to remake the nation's health care system is one step closer to reality after the pivotal Senate Finance Committee approved sweeping legislation Tuesday requiring nearly all Americans to purchase insurance and ushering in a host of other changes to the nation's $2.5 trillion medical system.

The committee approved the measure by a vote of 14 to 9, with all Democrats supporting it, along with one Republican - Sen. Olympia Snowe of Maine.

"Ours is a balanced plan that can pass the Senate," Committee Chair Max Baucus (D-Mont.) said Tuesday before the vote. "Our bill should win the support of Republicans and Democrats alike... My colleagues, this is our opportunity to make history."

Baucus ultimately failed at winning any more than one Republican vote, even after marathon negotiating sessions.

Republican Sen. Orrin Hatch (R-Utah) called the vote another step toward the "flawed solution... of more spending, more government and more taxes."

Snowe cautioned that her vote for the committee bill did not indicate she would support the Democrats' final plans.

"I [support the committee bill] with reservations because I share my Republican colleagues' trepidation about what will transpire on the Senate floor" and later on in the legislative process, Snowe said. Still, she said she would vote for the measure because "when history calls, history calls."

She urged her colleagues to "contemplate the decades of inaction that has brought us to these crossroads."

Much work lies ahead before a bill can arrive on Mr. Obama's desk, but the action by the Finance Committee still marks a significant advance.

CBSNews.com Special Report: Health Care

Four other congressional committees acted before August to pass health legislation, so for months all eyes have been on the Finance Committee, the remaining one. It's also the panel whose moderate makeup most closely resembles the Senate as a whole. And the committee's moderate legislation is seen as the best building block for a compromise plan that could find favor on the Senate floor.

Speaking from the White House Tuesday afternoon, Mr. Obama praised the committee for reaching a "critical milestone." Despite "significant details and disagreements" to work out, he said the bill "has brought us significantly closer to achieving the core objectives I laid out" for reform.

"I want to particularly thank Sen. Olympia Snowe for both the political courage and seriousness of purpose that she has demonstrated throughout this process," the president said.

By supporting the Democratic measure Tuesday, Snowe may be risking her chance of earning a new Republican leadership position, according to reports. She is next in line to serve as the top Republican on the Commerce, Science and Transportation Committee when the current senior Republican, Sen. Kay Bailey Hutchison (Texas), leaves the Senate to run for governor. The other Republicans on the committee may choose someone else to serve as the ranking member, however, because of Snowe's health care vote.

Senate Minority Leader Mitch McConnell said in a statement that Snowe called him Tuesday morning to notify him she would vote for the bill in spite of her reservations.

"I share her concerns about the direction of this bill once it leaves the committee, and her call for transparency before we vote to proceed to any bill on the floor," McConnell said.

Snowe said today she would not support a motion to proceed with health care legislation on the Senate floor until a cost estimate of the final bill were posted online.

The bill includes consumer protections such as limits on co-pays and deductibles and relies on federal subsidies to help lower-income families purchase coverage. Insurance companies would have to take all comers, and people could shop for insurance within new state marketplaces called exchanges.

Medicaid would be expanded, and though employers wouldn't be required to cover their workers, they'd have to pay a penalty for each employee who sought insurance with government subsidies. The bill is paid for by cuts to Medicare providers and new taxes on insurance companies and others.

Unlike the other health care bills in Congress, Baucus' would not allow the government to sell insurance in competition with private companies, a divisive element sought by liberals.

"To cut costs we must have a public option in the final bill," Sen. Chuck Schumer (D-N.Y.) said. He added, "This is clearly not anyone's ideal bill, but it is a good bill."

While the Congressional Budget Office has predicted the bill would ultimately save the government money, other Democrats reiterated Schumer's point that the bill is far from perfect.

Sen. Ron Wyden (D-Ore.) pointed out some middle-income families would have to spend $13,000 on health care before qualifying for subsidies.

"Those middle class families are going to seek an exemption [from the proposed requirement to acquire insurance] given those costs and be uninsured," he said.

The bill would leave about 25 million uninsured by 2019, the CBO estimates.

"This bill does not go far enough to protect vulnerable populations," Sen. Jay Rockefeller (D-W.V.) said.

Last-minute changes made subsidies more generous and softened the penalties for those who don't comply with the proposed new mandate for everyone to buy insurance. The latter change drew the ire of the health insurance industry, which said that without a strong and enforceable requirement not enough people would get insured, and premiums would jump for everyone else.

America's Health Insurance Plans commissioned a study to prove just that, alleging the bill would add thousands of dollars to a typical policy. Democrats and their allies scrambled Monday to knock down the report -- the White House called it "distorted and flawed," and AARP's senior policy strategist, John Rother, called it "fundamentally dishonest."

"The insurance industry ought to be ashamed of this report," Sen. John Kerry (D-Mass.) said Tuesday.

The insurance industry report was timed just ahead of the vote on Baucus' bill, but the industry was already looking ahead to negotiations on a final package to bring to the Senate floor.

Now that the Finance Committee has acted, the dealmaking can begin in earnest with Senate Majority Leader Harry Reid, D-Nev., working with White House staff, Baucus and others to blend the Finance bill with a more liberal version passed by the Health, Education, Labor and Pensions Committee.

A major question mark is whether Reid will include some version of a so-called public plan in the merged bill. Across the Capitol, House Democratic leaders are working to finalize their bill, which does contain a public plan, and floor action is expected in both chambers in coming weeks. If passed, the legislation would then go to a conference committee to reconcile differences.

See below for a look at the health care bill's progress so far on Capitol Hill and the road ahead. For more, visit CBSNews.com's Health Care Progress Report.

(CBS)

[noloyalisti]

Let's not compromise with these greedy private corporations who make money by running death panels. Let's make sure our reps start being for We the People instead of the uncaring, greedy corporations.

[noloyalisti]

Yeah go to a socialist country that has better health care like Canada, France or England.

What we really need is Universals Single Payer so we get profit completely out of our failing system for the rich.

Anything else, including a strong public option is just a bad compromise for We the People.

[quapawsix]

I want to know if we get a kiss first before they brake it off in us.

[Kristin-Russell]

I hope this does NOT pass the full senate...I am against this, if you want socialism then go to a socialist country...DON'T bring it to America...What will happen to those who can't get health coverage due to things like NO JOBS? Yes people there are those who can't afford it and folks like me who will NOT accept welfare or food stamps. I would rather starve than to have a government handout. That's what family is for to help others and NOT the government. The government's job is to keep us safe for invaders and attackers, foreign and domestic, NOT to keep us safe from ourselves. I am a proud Republican and am disgusted with hearing a Republican voted for this bill. She does not stand for the Republican ideals. She might as well be a Democrat. I sincerely hope and pray that this is stopped before it reaches any further because if it is not and it gets to Obama's desk...I shutter to think it...but I will be going to jail because I will NOT get the government mandated insurance.

[slownewsday_5]

"if you want socialism then go to a socialist country...DON'T bring it to America"

You must hate social security and medicare, the post office, public universities, FEMA, etc...

"Socialized" does not mean "socialist". You're a scared lemming who doesn't understand the huge difference in terms.

[wizcat123]

dragon8me ..... don't worry sooner or later you will meet him .... and he is not Obama ...

[wizcat123]

Just wait until the Public Option that Pelosi wants is in the bill. Bet she will not suscribe to any of the plans we, the citizens are getting, she is very happy with the healthcare plan she already has in Congress. Americans we are are, once again being taken care of by the crooks in Washington, this time it is Obama and the Democrats and of course Olympia Snowe, this is a bipartisan bill right!

[hball01]

I, for one, would like to apologize to America.

It was during the 9-11 recession, that I got laid off from a high tech job and lost my insurance. My new job started within 3 days of losing my health care portability act window, where I would have been out of the good-ole-boys club of insurability because of a pre-existing condition. Having been there I know we are all 1 pink slip away from losing health insurance forever. When I got laid off, I was told it is only business.

Before the last presidential election, I voted straight republican for 30 years. This last election I voted democratic because of this one singular issue ? it is that important.

After listening to and reading republican rants on this issue for months ? whose only goal is to stop Obamacare, I?m so embarrassed that I was ever republican. I know the play book ? delay, obstruct, confuse, mislead your opponent at all costs. Better to destroy the country (death spiral of unchecked insurance greed) than admit democrats have a better idea. Single payer is the only real way to check insurance company greed. Thank God people are starting to see through these misleading tactics.

Therefore, I would like to apologize to America and promise to stay democratic. Keep up the good work, republicans ? the party of exclusion, the party of obstruction - who seem to be insurance company pawns (or have insurance stock or employment). Your ranks are only shrinking. You republican, suck it up ? it is only business.

[wizcat123]

You should apologize to the World just like Obama does and please do stay Democrat (it is not Democratic) , we the Independents don't want you. I was also laid off, spent 18 months unemployed, collecting unemployment and now that my Cobra Plan ran out I bought limited health insurance for my wife and me, and I used to be a Republican just like you, but Democrat Socialists are not any better, they are a bunch of crooks and they are taking this country down.

[JamesB621]

This bill is seriously flawed, it forces people to purchase exorbitantly priced health insurance, cuts medicare, penalizes people and employers who do not purchase it, makes no provision for those who fall somewhere in between not being able to afford it and not being eligible for medicare, some 10-15 million people, what do we tell them? We need to have a public option if we are ever going to reign in the insurance industry.

Also, what about people with "pre existing conditions"? Insurance providers won't cover them, what are they supposed to do? Where do they turn for any kind of coverage? You conservatives just make me shake my head in disbelief! Most of you talk as if you have never really had to deal with a catastrophic illness or injury. When you do experience one just see what your doctor(s) order for you that is disallowed by your insurer, you'll be wondering just exactly what all those expensive premiums you've been paying WILL cover!

[dragon8me]

I am no longer in favor of a public option.



I'm in favor of a public ONLY system. We need a true universal health care system, like Canada. There is no reason for insurance companies to cet a cut. They provide nothing of value. All they do is take your money, skim at least 30% off the top. Control what the doctors can do, and drop you when you need them most. They take advantage of sick people and could care less if you die at their hand.

[lzdday]

Have you ever been to a hospital in Canade? GO! I'm sure you'll change your mind once you see one. They don't look like ours. If you are hurt and not a citizen, they WILL NOT help you.

[dragon8me]

I am no longer in favor of a public option.



I'm in favor of a public ONLY system. We need a true universal health care system, like Canada. There is no reason for insurance companies to cet a cut. They provide nothing of value. All they do is take your money, skim at least 30% off the top. Control what the doctors can do, and drop you when you need them most. They take advantage of sick people and could care less if you die at their hand.