The Power of A

The Senate Finance Committee yesterday continued to debate the list of amendments to its comprehensive health care reform legislation, but conspicuously absent from the discussion were any amendments tied to the major issues being discussed by members of Congress and the media, according to Politico.  At the beginning of yesterday’s hearing, the first amendment discussed was Senator John Kerry’s (D-MA) changes to the tax on “Cadillac” insurance plans.  However, the discussion was quickly ended when Kerry stated his intention to withdraw his amendment, stopping the debate over a major proposal to pay for health care reform.  Instead, it looks like he will reintroduce the amendment on the Senate floor.  Public option alternative amendments by Senators Carper and Snowe, which have been discussed by Senate leadership in recent days as major proposals, are also not scheduled to be debated by the committee.

The result is that the Finance Committee markup will be completed by the end of the week, allowing for the merging of the Finance and HELP Committee legislation.  Senate Majority Leader Reid yesterday told reporters he was cancelling the Columbus Day recess, setting aside that time for a floor debate on health care.  It seems likely that it is during that debate that we will see (depending on the content of the merged bill) debates on a version of the public option (or a trigger for the public option) as well as ways to pay for the Senate legislation.

Debate yesterday instead focused mostly on social issues, including abortion and immigration.  A list of all amendments and the votes can be found at the America’s Health Insurance Plans website, but some amendments of note include:

-          The Ensign/Carper amendment that would allow employers to adjust health care premiums based on the workers’ healthy or unhealthy behavior (Passed 19-3).

-          A Grassley amendment to remove the $6 billion fee on insurance companies (Failed 10-13).

-          A Nelson amendment to allow seniors to claim a tax deduction if their catastrophic insurance costs exceeds 7.5% of their income (Passed 14-9).

Quick Hits

The U.S. Chamber of Commerce urges its members to oppose Wyden amendment C-1 that requires large employers to offer at least two health care plans to employees…  CBO failed to include an exemption for hospitals in the Finance bill’s Medicare cost-cutting commission, skewing the score (subscription)… The White House tax reform panel holds its first public hearing yesterday and hears from some associations… Senators Kerry and Boxer introduce the Senate climate change legislation… The Washington Post tries to define a “Cadillac” plan.

As the Senate Finance Committee continues meeting among its members to complete its comprehensive health care reform proposal, committee member John Kerry (D-MA) has floated a funding proposal to help solve the bill’s budget problem.

The Kerry proposal, according to Congress Daily (subscription), would not remove the deduction on all employer-sponsored health care plans, but would tax insurance companies offering expensive health care coverage, commonly referred to as “Cadillac” plans.  This tax could be extended to employers offering the plan, although that had not been determined.

The new plan is an attempt to both provide a bipartisan funding mechanism for the Finance Committee’s legislation while trying to uphold the president’s promise not to raise taxes on individuals making below $250,000.  It also takes into account CBO Director Elmendorf’s testimony last week that one way health care reform could address cost issues effectively is to remove the exemption from employer-sponsored health care.

On the House side, the Energy and Commerce Committee continues its mark-up today, mainly debating minor amendments while negotiations continue behind the scenes between leadership and the Blue Dogs.  Politico obtained a list of negotiated points between the two sides; they include, among others:

-          Effectively bending the cost curve

-          Increasing the small business exemption and index it for inflation

-          Addressing end-of-life care

-          Establishing consumer-driven, state-based co-ops

-          Creating state-based exchanges with a federal fallback

Do you think taxing simply insurance companies or businesses offering “Cadillac plans” is a viable way to pay for health care reform?

Quick Hits

President Obama seemingly hedges on his timeline yesterday for health care… The Wall Street Journal questions if the proposed health care bills would repeal ERISA… The District of Columbia budget crunch means fewer resources for nonprofits… ASAE announces the American Association Day 2010 dates as March 23-24, 2010 and opens registration at www.asaecenter.org/flyin10.