Health Reform Legislation Moves Forward

Democratic leadership and President Barack Obama made good on a promise to pass sweeping health care reform legislation before Veterans Day and secured a key victory in the health care battle by approving H.R. 3962 last month. It was a close vote with 39 Democrats in the nay column and only one Republican crossing party lines to vote for the 1,990 page bill. The finally tally of
220 – 215 came after a late resolution of differences regarding the use of federal funds for abortion-related services.

Republicans offered a, late in the game, substitute health reform bill which was defeated largely on a party-line vote. It was scored by the Congressional Budget Office as reducing the federal deficits by $68 billion over 10 years and would reduce the number of noninsured people by approximately 3 million. The plan also allowed individuals to buy insurance policies across state lines and included the ability for small businesses to band together to negotiate for lower prices. It also limited medical liability lawsuits by capping noneconomic damages at $250,000 and made a federal ban on funding abortions permanent.

The version of the bill passed by the House contains several key elements such as a mandate of most legal residents to enroll in health coverage or pay a tax based on 2.5% of their modified adjusted gross income. It would establish a government-run public health option to compete with private insurers within new health insurance exchanges that would be established. An extension of COBRA is present, as well as a 5.4% income tax surcharge on the portion of high-income taxpayers’ adjusted gross incomes, several changes to Medicare Part D prescription drug program, and mandate “pay or play” for employers. Much of these were present in President Obama’s address to a joint-session of Congress in September, including eliminating annual and lifetime benefit limits, prohibiting preexisting condition exclusions, and requiring insurers to guarantee coverage regardless of health status.

Now the Senate has completed the task of unveiling a merged bill, where it is being hotly debated this month and possibly into early 2010. "We know it's been in Harry Reid's office for six weeks and the other 99 senators have not seen it," said Senate Republican Mitch McConnell just before the unveiling. "I think we ought to at least have as much time for the other 99 senators and all of the American people to take a look at this bill as Majority Leader Reid has had." While Democratic leader Dick Durbin told reporters the goal for action is this year but said lawmakers would "get it done" even if that deadline slips.

Of the 100 seats in the Senate, 60 are possessed by Democrats and all will have to be in favor of the bill for passage with the wildcard of Joe Lieberman coming into play. Lieberman, the once democratic vice presidential candidate, says he will oppose any bill containing a public option that will compete with private insurers because it could swell public debt. This could be a big issue for Democrats whom he has much clout among. However, there is another option that most still don’t think will be implemented but we have mentioned it here before. A process known as reconciliation would require only 51 votes instead of 60 and effectively stifle a filibuster move by Republicans.

The Dallas Regional Chamber continues to urge our community to reach out to their local representatives and let their voices be heard for or against the legislative reforms. As well, we continue to urge lawmakers to consider the Chamber’s list of healthcare reform principles that can be found by visiting our website www.dallaschamber.org/healthcare.