Senate Finance Panel Passes Health Reform

President Obama Calls the Bill's Passage a "Critical Milestone"

(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.

[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.

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

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.

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.

[jazz2blues]

Did anyone note the arresting of U.S. doctors and R.N.s asking for Single-Payer Medicare For All to be a topic of discussion in Senator Baucus? hearings back in May?

(snip)
http://www.democracynow.org/2009/5/13/baucus_raucus_caucus_doctors_nurses_and

Democracy NOW
May 13, 2009

Baucus?s Raucous Caucus: Doctors, Nurses and Activists Arrested Again for Protesting Exclusion of Single-Payer Advocates at Senate Hearing on Healthcare

Advocates of single-payer universal healthcare?the system favored by most Americans?continue to protest their exclusion from discussions on healthcare reform. On Tuesday, five doctors, nurses and single-payer advocates were arrested at a Senate Finance Committee hearing, bringing the total number of arrests in less than a week to thirteen. We speak with two of those arrested: Single Payer Action founder Russell Mokhiber and Dr. Margaret Flowers of Physicians for a National Health Program.

Real Video Stream
http://play.rbn.com/?url=demnow/demnow/demand/2009/may/video/dnB20090513a.rm&proto=rtsp&start=00:12:20

Real Audio Stream
http://play.rbn.com/?url=demnow/demnow/demand/2009/may/audio/dn20090513.ra&proto=rtsp&start=00:12:20

Guests: Russell Mokhiber, founder of Single Payer Action. He was arrested last week at the first Senate Finance Committee hearing on healthcare reform. He is also editor of the Corporate Crime Reporter http://www.corporatecrimereporter.com/

Dr. Margaret Flowers, pediatrician in Baltimore and co-chair of the Maryland chapter of Physicians for a National Health Program http://www.md.pnhp.org/

RELATED LINKS
Single Payer Action
http://www.singlepayeraction.org/
(snip)

[elwise1]

Is penalty-excise taxing someone for not buying something from a private company, even legal? Depending upon this for funding a government healthcare entitlement program may be fraught with lawsuits going all the way to the Supreme Court. And precedent established for the government to do this could be a whole new kettle of worms impacting our laws in many unintended ways. It needs exploring before a vote, or an injunction could be in the cards one day after a healthcare bill passes passes. Is it even constitutional?

[LenoreSussman]

What a nighmare we are living through our government representatives are not interested in what the people want or what the people think. The Dems only think they are going to force this health care program down everyone's throat no matter what. This is not the USA that I grew up in we are loosing all our consitutional freedoms and we are mirroring a socialist state. I am glad that I am now 65 and have no small children because I would hate to think of them growing up with this oppresssive big brother society. The one the that makes us so different to citizens of other cournties was our rights to free expression and right to choose forourselves. This is going.

As far as saving all the money so that this insurance experiement can be funded it is not fair to take it away from Seniors in their Senior Advantage because seniors will be affected greatly and they need these programs.

When did we stop thinking about the value of the individual and write off a segment o the population (senior) in order to allow another younger segment to flower we have lost all sense. If we are a God fearing nation no way should we be taking freedoms from the elderly or anyone else. These bills will not cover all people. There are many other ways that won't cost money. Pass laws forbidding insurance companies excluding coverage for any reason, give citizens the right to buy insurance in free market place accross state lines, put in some tort reform. For the poor and disadvantaged give them insurance for whatever they can pay and subsidize the rest. There are many free clinics, med schools could open to take the poor patients. We don't have to spend another trillon dollars. We don't need the president and his staff to make the unworkable work. We don't want what the Dems are selling.

[bkpass]

I have had Medicare coverage for 18 years. I am very healthy and have had excellent coverage all this time. I feel that I will get proper treatment for anything that happens in the future. No private insurance company would have given me this feeling of security. Every person in the US should have the right to feel as I do. They cannot do it without a public option that will cut off private insurance's domination of who gets what coverage.

[Stevenapoli7]

Why no torte reform? Why no Joint Commission reform? Those guys need to be on a leash. These guys didn't allow betadyne in the ER because someone might drink it. So now it is locked away and someone has to receive a verbal order to dig it out, sign in a log, and lock it again. Very inefficient...multiply by 10,000. These are the reasons healthcare is costly, and because medical technology is advancing by leaps and bounds.

[Americaneedsrealists]

Why do many of you think this is going to be free if the government runs it. All of us poor working stiffs will just pay higher taxes and take care of those who don't care to be productive. Why not get rid of governemnt fraud and abuse and then pay for those who really cannot afford health care. Our government ahs become too big and self serving and it is time for the American people to wake up. Maybe we should make it a prerequisite that if you wish to run for congress you cannot be a lawyer. At least we might get some common sense legislation that everyone would understand and actually read before enacting.

[lzdday]

AMEN! Employers will pay higher taxes too. For those of you a little slow, that means MORE layoffs.

[cateyes1960]

The health care refourm yes i agree with it, i think it is a good thing for those whom want it, but to be made to get it, and be leagally find, or put in jail for it i think that is wrong, this is freedom land suppose to be but we are now saying to other countrys we are now becomeing as them rules, not freedom yes i agree there needs to be rules but to tell people what to eat, smoke, drink, safe dranks, no alcholo or how to live in there homes or to take this insurance if you don't do these things you go to jail or get a big fine that is wrong that is freedom of choice suppose to be isn't these days. face it we are all becomming children, and children becoming adults, they now they will listen to them and made to ignore the parents. this is wrong. what happen to peace, love, careing, and freedom. there is no more.and the people of the land is the ones allowing it all to happen. WHY.

[r_mcdonald1]

The mortality rate in the United States is less than .08% of the population annually.

The birth rate in the United States is 1.4% of the population annually.

There are 307,098,987 people in the US per the National Debt Clock today. Our country is growing by 1.8 million annually just by birth alone.

Unfortunately, there are flaws in the existing system. These flaws can be fixed, but not at the hands of government. The consumer can do a lot to effect changes in how insurers handle claims.

Today I received a bill for a CT Scan of the abdomen for my wife, the gross charge was $ 1750. The insurer for my wife had negotiated a rate for this service with the provider of $ 1223.50, our net invoice for the services is $ 40.00 - the copay amount. The provider agreed to the insurers rate.

My question would be; is the initial charge artifically inflated? The provider agreed to a 30% discount to the insurer for a reason - it was fair.

3 years ago, my wife's kidney stones needed Lithotrypsy. she was uninsured. The local hospital wanted $ 11,000 to do the procedure. A hospital in Knoxville TN would do it for $ 4500 if there was no insurance involved.

The consumer can effect price. Yes, it takes work. Yes, it takes time, but the result is worth the effort. Work to replace your legislature, state and federal. Work to take back this country and put it back on track. Work to end lobbyists. Pass laws in your states prohibiting them, then force the Feds to do the same.

Our country is drowning in debt. We are soon to be slaves to the foreigners who will own this country when the debt is foreclosed. At the current rate of decline, we are all soon to be slaves to the government but people are to blinded by their idiology to see it.

The future of this nation is in your hands, what you decide to do will either saddle your great grandchildren with the debt of the millenium that no one on earth can pay, or enable them to live free and in control of their destiny. Choose wisely.

[cateyes1960]

health reform, thats ok have nothing against obama like him a lot, but the taxing middle class and poor is sad why taxes on those whom are skimming to get by, why not hit up the rich people whom can afford it, why should they continue to get by on easy street that is not fair to the ones that barely make it out here which is many more then there is rich, and many votes of middle and poor class that can count to more for him than rich can. and as for the children and what has happened to our children, well as i see it if you think about it your schools and parents got corrected by parents and schools growing up never hurt you, just put you in line. and you grew up with respect for older and dignity , since they removed parents rights and school rights away and now if a parent evens raises their voice to a child in a way they don't like they either slater the parents, or have them put in jail for lies, just to do what they want, that is why our children are the way they are today, yes i agree that several parents teachers, ect out there have no right to do so for crulety but for those whom now how to correct a child the right way and keep them on the right track in life to grow up with respect, for themselves and others and want to stay in school. but you now have schools and homes to where they can't do anything with a child afraid of going to jail or the child attempting to end them for trying to control them they now do as they want they are the adults we are the children, as predicted to happen and now adults want to ask what is wrong with our children well the laws is what is wrong with them they now rule and we follow. that is how i see it and now many others see it that way to. thanks and GOD bless our world and nation for what has become of us all.

[Cherish-you]

It is a hard time.