The Wall Street Journal is reporting that the Energy and Commerce Committee has struck a deal….
Mr. Waxman (D., Calif.) broke the impasse with the so-called Blue Dog Democrats when he agreed to changes designed to hold down costs, exempt additional businesses from requirements to provide health insurance and change the shape of a proposed government insurance option.
In the Senate, Finance Committee Chairman Max Baucus (D., Mont.) said his effort to build a bipartisan bill is advancing. He cited an estimate by the nonpartisan Congressional Budget Office that the bill in the Senate Finance Committee would cost less than $900 billion over a decade — less than other versions of the health legislation in the House and Senate — and ensure insurance coverage for 95% of Americans.
Among other things, the House deal, put together with heavy involvement by White House Chief of Staff Rahm Emanuel, would exempt more small businesses from a requirement to provide insurance to employees or pay a penalty. The deal would require that payments to health-care providers under a new public health plan not be pegged to Medicare, the health plan for the elderly. And it would also pare back the 10-year cost of the bill, estimated at roughly $1 trillion, by $100 billion. The cuts would be achieved in part by asking states to share in a planned expansion of Medicaid, which offers health insurance for the poor, and by requiring low-income people to pay higher premiums to purchase insurance.
When you hear that they are searching for a bi-partisan I ask , “when did a deal between Dems and Blue Dogs constitute a bi-partisan approach?”
Where is asking low income people to pay higher rates a good thing? Just who in the hell do the Yellow, oh sorry blue dog dems really respresent? Sounds to me like the health industry money was well spent on the coalition.
Hell even the Repubs doubt the Blue Dogs.
Republicans on Wednesday said even the revised bill would raise costs for small business and kill jobs. “It proves once again that the so-called Blue Dogs have no bite when they’re forced to choose between their constituents and the radical leadership of their party,” said Ohio Rep. John Boehner, the House minority leader.
Liberal House lawmakers complained the changes would weaken the bill, in part by raising costs for lower-income people and diluting the strength of the public plan. “It’s terrible and totally unacceptable,” said Jerrold Nadler (D., N.Y.). Reflecting the challenge for Democratic leaders in keeping the party united, Mrs. Pelosi met with a group of liberal lawmakers late Wednesday in an effort to calm tensions.
The deal cut by the Blue Dogs didn’t address rank-and-file Democratic concerns about a proposed surtax on wealthy households. The House legislation has included an extra tax on households making more than $350,000 a year, while Mr. Obama has suggested he would support a tax on those making more than $1 million to fund expanded health coverage.
Under the revised bill, companies with payrolls from $500,000 to $750,000 would face a penalty equivalent to 2% of payroll if they fail to offer insurance. Companies with payrolls above $750,000 would pay an 8% penalty.
After the changes, some 5.3 million employers would be exempt from the mandate, about 400,000 more than under the original House proposal, said the National Federation of Independent Business, a trade group representing small businesses. Even so, the federation said it believes the burden on small employers is too high.
The article reporting on the outcome of the deal was written by Greg Hitt and Janet Adamy.
If you have been paying attention to what I have been saying and posting about the health care debate, you will notice that I have said all along that the original health proposal would look nothing like the final product and so far I am looking pretty insightful.