A Weekly Health Care Reform Update

Check here weekly for the latest news and notes on the proposed health care reform efforts. You'll receive the latest inside information from inside and outside the beltway as our expert consultants report on what you need to know.

November 3, 2009

Both the Senate and the House have merged the various health reform bills passed out of committees over the past weeks and months.

• House Bill

  The goal is to send the House bill to the floor as early as next week. Arguably the most controversial issue in the health care debate, the House bill does include a public plan option. It has been softened somewhat by requiring that the public plan negotiate with providers for pricing of services. The House bill also includes a "millionaire's tax" — which applies an additional income tax on high wage earners, beginning at $500,000 for an individual.

  The Congressional Budget Office scored the net cost of the 1990-page House bill as $894 billion over 10 years for the proposed expansions in insurance coverage, with roughly $1.055 trillion in subsidies and tax credits offset by a projected $167 billion in penalties paid by individuals and employers. The CBO analysis prompted a letter from Blue Dog Democrats to the CBO asking for further analysis as to how to reduce the long-term growth in federal health care spending.

• Senate Bill

  The combined Senate bill is in the process of CBO scoring, with a goal to send the bill to the floor during November. The combined Senate bill has not yet been released, so details are scarce and negotiations with individual Senators are continuing. Debate continues over inclusion of a public option, with the most recent proposal being a public option under which states can opt out of participation. This will likely be a large issue in the Senate debate, with Republicans being joined by Sen. Lieberman in threatening a filibuster of any bill including a public option. A number of Democratic Senators have also voiced opposition to any bill including a public option.

Stay tuned ... November forecast is stormy!

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