By Mark Huffman
ConsumerAffairs.com
October 13, 2009
The Senate Finance Committee voted Tuesday to approve a health care reform bill and send it to the full Senate floor for debate.
The measure cleared the committee by a vote of 14-9, with Sen. Olympia Snowe (R-ME) joining all 13 Democrats on the committee voting yes.
The measure, drafted by committee chairman Max Baucus (D-MT), may have the best chance of all health care bills of becoming law. It meets all of President Obama's criteria for a bill but does not contain a public option provision, which a number of Democrats and all Republicans have opposed.
"This legislation is a smart investment on the federal balance sheet, and it's an even smarter investment for American families, businesses and our economy," Baucus said. "Health reform will modernize the health care system for the 21st century by reducing inefficiencies, focusing on quality and ensuring we are getting the best bang for our health care buck. Health reform should be fiscally responsible as it expands and improves coverage and these numbers reiterate that real reform can be just that."
The bill gained momentum last week after the Congressional Budget Office released an analysis of the legislation, saying it would cost $829 billion over ten years but would reduce the deficit by $81 billion, because of steep cuts in Medicare.
The bill would also raise money to cover up to 94 percent of Americans by imposing a tax on the most comprehensive health plans offered by employers and unions. Consumers whose health policies give them access to health care services at little or no cost would have to pay a tax under the Baucus plan.
The bill has two goals; to provide health coverage for all Americans and to reduce spiraling costs of health care services in the U.S. The Baucus measure would require all Americans to purchase insurance. It would also expand eligibility for Medicaid, the health program for the poor, and provide new tax subsidies to help individuals and families purchase health insurance.
A health insurance study by Price Waterhouse, released Monday, warned consumers that their health insurance premiums would rise if the Baucus bill becomes law. The insurers said provisions requiring all Americans to buy insurance had been weakened and companies would have to raise all premiums to make up the difference. Baucus dismissed the report as "an industry hatchet job."
Snowe's vote for the Baucus bill gives Democrats enough votes in the Senate to head off a filibuster and bring the measure up for a vote, where it is expected to win approval.
It would then be up to the House of Representatives to pass its version of a health care bill. All the versions being considered in the house are different from the Baucus bill and most contain a public option provision. Assuming a bill passed the House, the House and Senate versions would be merged in a conference committee. The final compromise would then require approval from both the House and Senate.
