Democrats Mull Scaled-Down Health Reform

(CBS/AP)  Chastened by the Democratic Senate loss in Massachusetts, President Obama and congressional allies signaled Wednesday they may try to scale back his sweeping health care overhaul in an effort to at least keep parts of it alive.

A simpler, less ambitious bill emerged as an alternative only hours after the loss of the party's crucial 60th Senate seat forced the Democrats to slow their all-out drive to pass Obama's signature legislation despite fierce Republican opposition. The White House is still hoping the House can pass the Senate bill in a quick strike, but Democrats are now considering other options.

CBSNews.com Special Report: Health Care

No decisions have been made, lawmakers said, but they laid out a new approach that could still include these provisions: limiting the ability of insurance companies to deny coverage to people with medical problems, allowing young adults to stay on their parents' policies, helping small businesses and low-income people pay premiums and changing Medicare to encourage payment for quality care instead of sheer volume of services.

The goal of trying to cover nearly all Americans would be put off further into the future.

Obama urged lawmakers not to try to jam a bill through, but scale the proposal down to what he called "those elements of the package that people agree on."

"We know that we need insurance reform, that the health insurance companies are taking advantage of people," the president said in an interview with ABC News. "We know that we have to have some form of cost containment because if we don't then our budgets are going to blow up. And we know that small businesses are going to need help."

One potential Republican convert for health care legislation remained an enigma. Sen. Olympia Snowe of Maine, who has been in regular contact with Obama, roundly criticized the Democrats' hard push to pass their bill. But she would not rule out voting for something in the end.

Asked if the Democratic bills are dead, Snowe responded: "I never say anything is dead, but clearly I think they have to revisit the entire issue."

Some Democrats weren't ready for that, despite the president's new words.

One option, still alive and stirring strong emotions, called for the House to quickly pass the Senate version of the broader bill - simply accepting it and therefore bypassing the Senate problem created by the loss of the Massachusetts seat to Republican Scott Brown. But that appeared to be losing favor.

"That's a bitter pill for the House to swallow," said the No. 2 Senate Democrat, Dick Durbin of Illinois.

"Full speed ahead is off the table," said Rep. Earl Pomeroy, a moderate Democrat from North Dakota. "We are still very much in the exercise of drawing meaning from the public disquiet."

However, CBS News Capitol Hill producer Jill Jackson reports that House Speaker Nancy Pelosi told the U.S. Conference of Mayors Thursday that Democrats won't give up on passing health reform legislation.

"Heeding the particular concerns of the voters of Mass. last night -- We heard, we will heed, we will move forward with their considerations in mind," said Pelosi. "But we will move forward for health care."

And the quick approach remains on the table, despite some House members' deep misgivings. In fact, administration officials were working behind the scenes on that idea, which would be the fastest and cleanest route to getting a bill to Obama, said a senior administration official, who spoke on condition of anonymity to more freely describe private talks.

House Speaker Nancy Pelosi and other Democratic leaders were gauging support for the idea among liberals and moderates. The initial reaction was not encouraging.

"If you ran that Senate bill right now on the House floor, I'll bet you would not get 100 votes for it," said Rep. Bart Stupak, D-Mich.

It takes 218 votes to pass legislation. A majority of House Democrats oppose a tax on high-cost insurance plans in the Senate bill that unions see as a direct hit on their members. Stupak and other abortion opponents, backed by Catholic bishops, say the Senate bill falls short in restricting taxpayer dollars for abortion.

A week ago, House and Senate Democrats were working out the differences in their respective bills, and a quick resolution seemed likely. But feuding broke out after Brown's upset victory secured the seat held by the late Sen. Edward M. Kennedy for the GOP.

Some Democratic senators suggested it was up to the House to save the day by passing the Senate bill.

"The Senate has passed the health care bill. The House has to make a decision how they want to proceed," said Sen. Patty Murray, D-Wash., a member of the leadership.

Republicans said that would make their day.

Trying to push the Senate bill through would be a desperate ploy seen as such by voters, said Sen. John McCain, R-Ariz., Obama's 2008 presidential rival. "If they try to jam it through the House, they'll pay a very heavy price."

As the day wore on, those urging moderation seemed to be winning the argument.

"We're not going to rush into anything," said Senate Majority Leader Harry Reid, D-Nev. "We will wait until the new senator arrives."

Many Democrats are wary of starting over with the goal of drafting a bill that reaches for the political middle. They doubt they'll get any cooperation from Republicans.

"You cannot dance with someone if they are not willing to dance with you," said Sen. Robert Menendez, D-NJ. He called GOP complaints that the Democrats wrote a partisan bill "pretty lame, when they have made a political calculation that their path to victory is to have the president fail."

But House Majority Leader Steny Hoyer, D-Md., said a more modest approach would be a "reasonable alternative" that could appeal to the public even if Republicans still oppose it.

"Given the public concern, I think that we ought to focus on that which...the public can support and will be positive in terms of making health care more affordable and obtainable," he said.

Instead of one big bill, health care overhaul could be broken into chunks and passed over time.

"Medicare wasn't done in one fell swoop," said House Majority Whip Jim Clyburn, D-S.C. "You lay a foundation and you get this thing done over time."

[msimamaji]

I remember a moment last fall when RNC Chairman Michael Steele spoke at Howard University. A student told Steele that her mother died because she could not afford the cancer treatments that would have saved her life. Michael Steel simply turned his back on her.

That best describes the GOP way of solving problems. Whether it's our dysfunctional health care system, or global warming. The GOP simply insists the problem doesn't exist. Unfortunately, you can't solve serious problems by turning your back on them.

The real winner of the Massachusetts election was Wall Street.

Wall Street of course will have to give all these new investors a handsome return on their investments. It will also have to pay the bills for their multi-million dollar advertising campaign. It will have to pay off lobbyists and give CEO's generous bonuses. And since 2010 is an election year, health insurance and bigPharma will spend millions if not billions of dollars in political campaign contributions to Republicans and Blue Dog Democrats.

These expenses will come out of your pocket. If you pay for your own insurance, be prepared for steep increases (probably after the 2010 election when a GOP majority is assured.) If you get insurance from your employer, expect a steep increase in out-of-pocket expenses and high deductibles. If you get too sick to be profitable, expect to lose your insurance. If you are a woman, expect to pay more. And if you have a pre-existing condition, like asthma or a Caesarian, that's just too bad. No insurance, no medical care.

We can expect more bankruptcies. As people have to pay more for insurance, they will have less money to spend elsewhere, so expect businesses, especially small businesses to close their doors. In addition, rising health insurance costs will cause a greater credit freeze for small business loans. Lest I forget, more people will die because of inadequate medical bills. More babies will die because of inadequate pre-natal care. And more desperate women will seek abortions because it's the only way out of a hopeless situation.

Our dysfunctional health care system is like a cancer. The more you delay treatments the worse it will get, until it destroys the whole economy.

[Stevenapoli7]

Everyone with a problem thinks they are a victim. Learn to help yourself.

[msimamaji]

The "smartest" move the Democrats could make is to agree to abandon health care reform on one conditions. Every Republican office holder across the country must sign an agreement that they will accept full responsibility - including legal responsibility for everything that results because of the failure of health care reform.

In other words, when insurance rates rise, and indeed they will because health insurance most provide pay offs to investors, lobbyists, ad agencies, and politicians - Republicans must accept full responsibility for those rates.

When auto insurance companies raise their rates because increasing of medical coverage*, Republicans must accept full responsibility.
When insurance companies, cut benefits (for the same reasons) again Republicans must accept full responsibility.

When Medicare goes broke because of Medicare fraud and Medicare Advantage, Republicans must accept full responsibility

When people lose their insurance or are denied coverage because of pre-existing conditions, Republicans must accept full responsibility.
When women wind up paying twice as much for insurance than men, Republicans must accept full responsibility.

When people die because of inadequate medical care, and when babies die because of inadequate prenatal care, Republicans must accept responsibility for every death that occurs.

When women resort to abortions (legal or illegal) because they cannot afford medical care, Republicans must accept responsibility.

This deal will not come to pass primarily because Democrats, particularly Obama, are stupid and they are more concerned helping the weak and disenfranchised than with telling them to drop dead. In addition, Republicans won't agree to these terms. because in addition to being the party of NO. They are the party of NO responsibility. Regardless of what they do or do not do, Democrats, only Democrats, get the blame.

[quapawsix]

Charging for water as a commodity this sounds like the 80's movie The Ice Pirates.

[pdxdave]

Ummmm... potable water is not now, nor has it ever been free.

Even prehistoric man traded in water. You think the women who carried pots of water for miles from the spring didn't get something in exchange for being "the water company?"

All this false angst about business and profit is ludicrous. It is the left trying their hardest to create the illusion of out-of-control corporations taking advantage of poor consumers. B.S.

[ky7474]

What difference does 59 ar 70 votes make if the party is full of turn coats? The dispicable actions of the repubs woke of the sleeping giant and allowed hope and great expectation for those that have been run over and oppressed for decades. Now we find out the dems aren't willing to engage and are passing out sleeping medication to the giant to calm his nerves. Don't worry they got a good deal on the meds, they cut a deal with big Pharma.

[rocketjl]

Thank goodness. The way the WH and the democrats were going, I was afraid that someday I might see someone with an Obama sign, a wooden club, and an arm band with something on it, walking down my street.

[patsy_owens]

FLOW: FOR LOVE OF WATER by IRENE SALINA (the movie or youtube)
SAVE A NATURAL RESOURCE: PRIVATIZE IT!

[pdxdave]

In Portland, Obama supporters in black shirts attacked a Republican campaigner passing out American flags at the Rose Festival. Then, they went to the police and had the guy THEY attacked thrown out of the festival for "disturbing the peace." When told that the man they were throwing out was the VICTIM of an attack, the cops said he brought it on himself by being a republican. That is Portland for ya.

We are well down the road to a Fascist America.

[averjane]

How fitting that the very seat held by one of the biggest liberal democrats in the US has been replaced with a Republican who does not stoop to the same values Kennedy supported. He's probably rolling over in his grave right now if that were possible and cursing the God who created him for letting him die before he could cast his vote.

[pdxdave]

"Oh that you would lose your coverage... ya don't need it, you're healthy."

Why do socialists think that being sick automatically entitles a person to OTHER PEOPLE'S money?

You got sick? Not my fault. Don't have the resources to take care of yourself or your family? Not my fault. Going to die because you can't afford medical care? Not my fault.

People get sick and die. It's been happening for hundreds of thousands of years. What is it about the past 20 years that leftists all of a sudden view it as some sort of social crisis that requires the state to take money from one person and give it to another?

[Cattzen]

The Republican Party owns nothing done on Healthcare.

[DaVicar8]

as a Republican with a pretty good healthcare plan, I have to agree.

[pdxdave]

Maybe you should wait and post when you aren't high.

[TryTakingMyMoney]

LOL...Browns arrival in Washington looks like a new president. BHO is now a lame duck!

[endurorob_5]

Obama's popularity is waning. I guess people tire after so many speeches and so little action.

[patsy_owens]

Don't know...those are some sexy shirtless pictures of Scott Brown...I'm just gay about it....look if we wanted another Obama then just vote him back into office.

WAKE UP PEOPLE...Corporations do not care about U but they do care about your vote. It won't be long before you see water priced as a commodity on the NYSE. Watch California, Michigan, and Florida. Water companies are buying up the land so that they have EXCLUSIVE rights to the water. Companies are pumping public water out and storing it for trade. Just like oil. Brown's arrival in Washington looks like a new free market opening up. Watch... over time you'll see what "FISCAL CONSERVATIVE" truly means. DRILL BABY DRILL

For the LOVE OF MONEY...People will sell their own bodies...for a small piece of paper it carries a lot of weight...

[endurorob_5]

U_S_Drug_Addict January 21, 2010 10:01 AM EST
please opt out of Medicare and Medicaid and Social SEcurity.

thanks.



I have been paying into those since I first started working at the age of 16 so i think I will opt in and get a return on my investment.

[endurorob_5]

midlclass January 21, 2010 10:23 AM EST
good points however i don't see how tort would stop doctors from ordering excessive procedure's. unless the doctors stop all testing. then how are they going to find out what is wrong.


Under current conditions with people bringing suit for any little thing doctors order uneccessary tests so that if they go to court they can say they did everything possible. They should not have to do everything possible they should have to do everything sensible.