Research Briefing

As Obama Takes To Podium Again, Democrats Going “Back To The Drawing Board”

HOWARD KURTZ A-TWITTER: “Obama to talk about health care at 3:15. Wondering if this means their diagnosis is that the thing is seriously ailing.” (Howard Kurtz, Twitter Account, 7/17/09)

HOUSE DEM LEADERSHIP LOSING CONTROL

“Sticker Shock” Forcing Democrats To Start From Scratch. “Another case of sticker shock has slowed congressional progress on health care reform, with the Congressional Budget Office reporting yesterday that the Democratic proposals now being considered won’t net the federal government any savings … ‘I’d say it’s something we need to address,’ Hoyer, D-Md., told us. ‘Clearly, bringing costs down is one of the major objectives of this effort, and we’ve got to do that. And if the scoring and the projections don’t indicate that we’re doing that, we need to go back to the drawing board and make sure we do that.’” (Rick Klein, “Dems Sent ‘Back To Drawing Board’ On Health Care; Surtax On Wealth Is Good Politics,” ABC News, 7/17/09)

Democratic Congressmen Upset At Leadership. “Democrats’ triumphant rollout of a sweeping health care reform bill earlier this week already feels like a distant memory. Rank-and-file Democrats don’t like it — and aren’t afraid to say so. The speaker has already backpedaled on a key tax increase — putting her in a weaker negotiating position. And one outspoken Democratic critic doesn’t think his leaders are ‘even close’ to the votes they need to pass it.” (Patrick O'Connor, “Rank-And-File House Dems Don't Like It,” Politico, 7/17/09)

Rep. Henry Waxman (D-CA) Threatens Blue Dog Dems For Not Supporting Government-Run Health Care. “Committee Chairman Henry A. Waxman, D-Calif., said he asked the Blue Dogs after the vote if they were trying to make a statement, and they told him no, they thought it was genuinely a meritorious amendment. ‘There’s no doubt in my mind that if the Blue Dogs join with the Republicans they can bring this bill down,’ Waxman said. But he doubts that will happen. ‘I think that it would be such a mistake for any group of Democrats to bring down this legislation and give the president a defeat - especially those in marginal districts,’ he said. ‘They are the ones who will pay a political price when voters get angry that Congress hasn’t responded to their health care concerns.’” (Alex Wayne And Jonathan Allen, “Blue Dogs Bare Teeth At Health Bill Markup,” CQ, 7/17/09)

DEMOCRATS WHO KNOW BETTER CONTINUE TO GO ROGUE

Rep. Bart Stupak (D-MI): “They Can’t Continue To Ignore Us.” “Dissident House Democrats are threatening to block a health care bill if their leaders try to bypass the Energy and Commerce Committee, where odds of passing it appear dim without a major overhaul… ‘They can’t continue to ignore us,’ Stupak said. ‘You are going to get more than 39 votes against your rule’ if House leadership tries to jam the health care bill through, he said. ‘We’re not just going to roll over just because it has the name “health care” on it.’ … Stupak said he has been taken ‘to the woodshed’ by leadership but isn’t budging.” (Steven Dennis, “Stupak Warns of Democratic Defections on Health Bill,” Roll Call, 7/17/09)

Blue Dogs Won’t Sign Onto Bill That “Does Not Fix The Broken Health Care System.” “Stupak, along with Blue Dog Democrats, opposes the bill in its current form, and they say they have the votes to kill it in committee or the floor, unless Republicans sign on to the package… Fundamentally, the bill does not fix the broken health care system, he said. ‘Why would we give you more money for a system that’s broken?’ he asked. Stupak also is upset about the creation of a new national health czar who would set the rules for health insurance plans. ‘Why does one person make the decisions in Washington, D.C.?’ he asked. ‘What’s Congress’ role? ... “Just give us the money.” We have no say in it.’” (Steven Dennis, “Stupak Warns of Democratic Defections on Health Bill,” Roll Call, 7/17/09)

Freshmen Dems Object To Surtax. “Leaders are facing trouble on other fronts, as well. Led by Rep. Jared Polis (D-Colo.), 22 freshman Democrats on Friday sent Speaker Nancy Pelosi (D-Calif.) a letter expressing strong objections to the surcharge tax on the wealthy that would raise $544 billion to pay for expanded coverage. The freshmen, who have huddled with Pelosi twice this week, argue the tax increase would hurt small businesses. And on top of their substantive concerns, the new lawmakers are worried they will have to take a tough vote on the tax only to see it significantly rejiggered in negotiations with the Senate. ‘We’re skeptical this will be the ultimate financing mechanism,’ Polis said. ‘It’s probably a vote to no avail.’” (Steven Dennis, “Stupak Warns of Democratic Defections on Health Bill,” Roll Call, 7/17/09)

NO WONDER EDITORIAL BOARDS LAMBAST GOVERNMENT-RUN HEALTH CARE

Wall Street Journal: “One Of The Greatest Raids On Private Income And Business In American History.” “[T]ax increases that would take U.S. rates higher even than most of Europe. Yet even those increases aren't nearly enough to finance the $1 trillion in new spending, which itself is surely a low-ball estimate. Meanwhile, the bill would create a new government health entitlement that will kill private insurance and lead to a government-run system … We could go on, and we will in coming days. But the most remarkable quality of this health-care exercise is its reckless disregard for economic and fiscal reality. With the economy still far from a healthy recovery, and the federal fisc already nearly $2 trillion in deficit, Democrats want to ram through one of the greatest raids on private income and business in American history. The world is looking on, agog, and wondering why the United States seems intent on jumping off this cliff.” (Editorial, “A Reckless Congress,” The Wall Street Journal, 7/17/09)

Washington Post: Democrats’ Proposal Falls Far Short Of Their Own Standards. “In assessing proposals to overhaul the health-care system, there are three overarching questions: First, would the change make insurance more accessible, affordable and reliable? Second, is it paid for -- not only in a way that makes sense but that is sustainable over time? Third, and related to the second, does the legislation do enough to bend the curve on health-care costs, slowing the trajectory in which the increase in costs greatly outpaces the overall inflation rate? The House bill, which emerged to effusive praise from President Obama this week, falls short on two out of three counts.” (Editorial, “Why The Cheers?” The Washington Post, 7/17/09)

BIPARTISAN GROUP OF SENATORS NOT HAPPY GETTING RUSHED BY OBAMA

Bipartisan Call For More Time. “A bipartisan group of Senators led by Ben Nelson (D-Neb.) is pushing back against the rush to complete a health care bill by mid-August… ‘We support the efforts of Finance Committee members to produce a bipartisan bill, despite calls from both sides of the aisle to rush forward or delay indefinitely,’ the bipartisan group wrote. ‘While we are committed to providing relief for American families as quickly as possible, we believe taking additional time to achieve a bipartisan result is critical for legislation that affects 17 percent of our economy and every individual in the U.S.’” (Emily Pierce, “Bipartisan Senate Group Asks Leaders to Put Brakes on Health Bill,” Roll Call, 7/17/09)

Lack of Cost Savings Still A Concern. “The letter expresses concern about Congressional Budget Office Director Doug Elmendorf’s statement on Thursday that neither a measure approved by the Health, Education, Labor and Pensions Committee this week, nor a bill under consideration in the House, would actually end up saving the government money on health care costs. ‘We are faced with the dual challenges of pressing ahead to pass legislation by the end of the year and to produce the reform the American people need,’ the letter reads.” (Emily Pierce, “Bipartisan Senate Group Asks Leaders to Put Brakes on Health Bill,” Roll Call, 7/17/09)