Research Briefing

Senate Finance Committee Markup Of Baucus’ Bill Begins, But Dems Still As Divided As Ever

Politico’s “Understatement Of The Day.” Sen. Jeff Bingaman (D-NM): “This Mark Up Promises To Be A Painstaking Process.” (Chris Frates, “Tuesday’s Understatement Of The Day,” Politico’s “Live Pulse” Blog, 9/23/09) 

SENTATE DEMS FIGHTING BAUCUS’S TAX ON MEDICAL DEVICE MAKERS … 

Sens. John Kerry (D-MA), Amy Klobuchar (D-MN), Al Franken (D-MN) And Evan Bayh (D-IN) Oppose Baucus’ Medicare Innovation Tax. “[W]hen it comes to the bill’s proposed tax on medical device makers, Kerry is striking a different tone. At the Finance Committee’s mark-up of the health bill on Tuesday, he said he’s concerned about a proposal that would tax device makers $4 billion annually. Such a levy, he said, could discourage makers of medical equipment from creating better new products. ‘I don’t want to see that innovation stifled,’ the former Democratic presidential candidate said … Other Democrats whose states are home to big medical device makers are also coming out against the tax. Last week, Democratic Sens. Amy Klobuchar and Al Franken of Minnesota joined with Indiana Sens. Evan Bayh, a Democrat, and Dick Lugar, a Republican, and asked Finance Committee Chairman Max Baucus of Montana to reconsider the fee. ‘This industry should not be forced to pay more than its fair share,’ the senators said in a letter.” (Janet Adamy, “Sen. Kerry Fights A Proposed Health Tax,” The Wall Street Journal’s “Washington Wire” Blog, 9/22/09)

AND CHALLENGING OBAMA-BAUCUS DEAL WITH DRUG MAKERS

Senate Dems Attempt To Alter Deal Struck Between Baucus And Drug Makers. “Senate Finance Committee Chairman Max Baucus (D-Mont.) faced an early test of his leadership Wednesday after fellow Democrats challenged the $80 billion deal he struck with drug makers to help pay for health-care reform. Nearing the end of a 13-hour opening day of work on Baucus’s bill to overhaul the nation’s health-care system, several committee members pressed Tuesday night for an amendment extracting larger company rebates on medications the government purchases for low-income senior citizens … Baucus, who remained silent during the drug debate, postponed a vote on the amendment at least until Wednesday.” (Ceci Connolly, Shailagh Murray and Lori Montgomery, “Democrats Question Baucus’s $80B Deal With Drug Makers,” The Washington Post, 9/23/09)

Sen. Thomas Carper (D-DE) Said Deal “Didn’t Seem Fair.” “The lone committee Democrat to speak against the amendment was Sen. Thomas R. Carper (D-Del.), who said it ‘doesn’t seem fair’ to renege on an agreement struck many months ago. The pharmaceutical giant AstraZeneca is one of the top 10 employers in Carper’s home state.” (Ceci Connolly, Shailagh Murray and Lori Montgomery, “Democrats Question Baucus’s $80B Deal With Drug Makers,” The Washington Post, 9/23/09)

MEANWHILE, PELOSI WILLING TO RUN OVER BLUE DOGS …

House Speaker Nancy Pelosi (D-CA) Favors Surtax And Public Option, Which Will Break Deal Between Blue Dog Dems And Rep. Henry Waxman (D-CA). “Speaker Nancy Pelosi (D-Calif.) is tacking left as she tries to put the finishing touches on a House health care overhaul, pushing for the bill to include two provisions reviled by many moderates: a tax on the wealthy to help pay for it and a public insurance option pegged to Medicare reimbursement rates. Pelosi’s gambit runs the risk of inflaming Democratic moderates, who have tried to nudge the package to the political center in anticipation of a final bill that hews closely to what the Senate Finance Committee produces. They are anxious to avoid taking career-threatening votes on a House package only to see it rewritten in conference negotiations with the Senate. … “If Pelosi follows through, she would effectively eviscerate the deal that Blue Dogs on the Energy and Commerce Committee reached with Chairman Henry Waxman (D-Calif.) in July to break a logjam on that panel.” (Tory Newmyer, “Pelosi Navigates Rough Reform Waters,” Roll Call, 9/23/09)

Senior Democratic Aide Suggests Pelosi Ready To Alienate Blue Dogs To Gain Cost Savings. “The question for Pelosi, the best vote-counter in the Caucus, is how many Blue Dogs will bolt, and whether it is worth both the liberal votes gained and the cost savings. ‘We don’t know how many people we’re going to lose,’ one senior Democratic aide said. ‘But what we gain is a lot of money’ — an important advantage, considering the House has to trim the cost of its measure by more than $100 billion to bring it in line with the preferred White House price tag of $900 billion.” (Tory Newmyer, “Pelosi Navigates Rough Reform Waters,” Roll Call, 9/23/09)

And She’s Ready To Move Fast. “[S]everal leadership aides said she is aiming to wrap up work on the bill this week so it can be scored by the Congressional Budget Office in time for a mid-October vote.” (Tory Newmyer, “Pelosi Navigates Rough Reform Waters,” Roll Call, 9/23/09)

AND OBAMA, CAMPAIGN ORGANIZATION PLAYING HARDBALL WITH FELLOW DEMS

Organizing For America Pressuring Sen. Ron Wyden (D-OR) To Sign On To Government-Run Health Care Experiment. “The successor organization to President Obama’s campaign - Organizing for America - will send out an e-mail to the president’s supporters Wednesday urging Sen. Ron Wyden to move the health reform bill out of the Senate Finance Committee ... Text of e-mail from Organizing for America: ... ‘Your voice matters right now: Please call Senator Wyden today ... After months of shared effort, a milestone in the struggle for reform is within reach -- and we can’t let special interests and their lobbyists have the last word now. Call Senator Wyden at (202) 224-5244 and tell the staffer who answers that … you are counting on him to help pass health reform in the Senate Finance Committee.’” (Jeff Mapes, “Obama To Wyden: Pass Health Bill Out Of Committee,” The Oregonian, 9/22/09)