Research Briefing

Reid Has Unveiled His Government-Run Health Care Experiment, But Can He Get His Fellow Dems To Agree On The Right Formula?

Yesterday, “Reid, D-Nev., Summoned Members Of The Democratic Rank And File To A Late-Afternoon Closed-Door Caucus To Show The Bill He Has Spent Weeks Writing And Rewriting.” (David Espo, “AP Source: Reid’s Health Bill To Cover 31 Million,” The Associated Press, 11/18/09)

KERRY AND BOXER WILL FIGHT OVER TAXING HEALTH BENEFITS …

Sen. John Kerry (D-MA) Pushed For Tax On “Cadillac” Insurance Plans. “Sen. John Kerry hasn’t been shy about supporting new taxes to pay for the health-care overhaul. The Massachusetts Democrat was the force behind a provision in the Senate Finance Committee’s health bill that puts a 35% tax on generous health-insurance plans, the bill’s main source of new revenue.” (Janet Adamy, “Kerry: Tax On Medical-Device Makers Could Derail Innovation,” The Wall Street Journal’s “Health Blog” Blog, 9/22/09)

But Sen. Barbara Boxer (D-CA) Says She “Would Not Support Taxing Healthcare Benefits.” (Tony Romm, “Boxer Would Not Support Healthcare Tax On Individuals,” The Hill’s “Briefing Room” Blog, 9/14/09)

CONRAD AND KIRK WILL FIGHT OVER A LONG-TERM CARE ENTITLEMENT SCHEME …

Sen. Kent Conrad (D-ND) Calls CLASS Long-Term Care Entitlement “A Ponzi Scheme Of The First Order.” “[T]he program would begin taking in premiums immediately but would not start paying benefits until 2016 … But deficit hawks and the American Academy of Actuaries have questioned the design of the program, warning that it could require infusions of taxpayer money to cover benefits after 2019. Sen. Kent Conrad (D-N.D.) has also expressed concern about the CLASS Act, calling it ‘a Ponzi scheme of the first order,’ and vowed to block its inclusion in the Senate bill.” (Shailagh Murray & Lori Montgomery, “Centrists Unsure About Reid’s Public Option,” The Washington Post, 10/28/09)

But Sen. Paul Kirk (D-MA) Says CLASS Long-Term Care Entitlement “Necessary Part” Of Government-Run Health Care. “I hope very much that our colleagues will support the CLASS Act as an innovative and necessary part of the current health reform bill, and I look forward to further opportunities to advance this measure, and ultimately as a part of the needed health reform bill that is coming to the floor and will help and serve the American people to its ultimate enactment.” (Sen. Paul Kirk, “Kirk Speaks In Support Of Long-Term Care Insurance For Elderly And Disabled,” Press Release, 10/28/09)

BAUCUS WILL FIGHT FRANKEN AND KLOBUCHAR OVER TAXING MEDICAL INNOVATION

Sen. Max Baucus (D-MT) Said Medical Device Manufacturers Have A Shared Responsibility In Health Care Reform. “The situation all comes down to shared responsibility … We’re all in this together as Americans. That means individuals, providers, hospitals, the pharmaceutical industry -- and medical device manufacturers.” (Kevin Diaz, “Medical Device Tax Under Fire,” Star Tribune, 10/23/09)

But Sens. Amy Klobuchar & Al Franken (D-MN) Say Medical Device Tax “Will Seriously Threaten Thousands Of American Jobs And Deter Innovation.” “In a letter to Sen. Max Baucus, D-Mont., chairman of the powerful Senate Finance Committee, the Minnesota Democrats claimed the proposed $4 billion tax ‘will seriously threaten thousands of American jobs and deter innovation ….” (“Klobuchar, Franken Oppose Device-Firm Tax,” Minneapolis Star Tribune, 9/16/09)

ROCKEFELLER WILL FIGHT BAUCUS OVER THE EMPLOYER MANDATE

Sen. John Rockefeller (D-WV) Looks Forward To Implementing An Employer Mandate. “In contrast to the policy included in the Finance mark, the Health, Education, Labor, and Pensions (HELP) Committee health reform bill, the Affordable Health Choices Act, has a true employer mandate, and increases employer-based coverage by 14 million people over the ten-year budget window.  I look forward to continuing to work with Chairman Baucus and other Members of the Committee to implement a true employer mandate that creates a fairer system of employer shared responsibility.” (Sen. John D. Rockefeller IV, Finance Committee Report of the America’s Healthy Future Act of 2009,” Press Release, 10/14/09)

But Sen. Max Baucus (D-MT) Said “It Made More Sense Not To Have The Actual [Employer] Mandate.” Q: “Why not have a stronger employer mandate then? Because it looks like it would be cheaper for a lot of employers to take a tax credit, as opposed to …” SEN. BAUCUS: “Well, this is an effort to get balance again, an effort to get a bill that can pass. We -- I decided that it made more sense not to have the actual mandate.” (Sen. Max Baucus, Press Conference, 9/16/09)

AND EVERYBODY WILL FIGHT EACH OTHER OVER THE PUBLIC OPTION

Sen. Joe Lieberman (I-CT) Said He Will Not Vote For Cloture On Bill That Contains Public Option. “Sen. Joe Lieberman, the Democrat turned-Independent from Connecticut, said Tuesday that he will not vote for a healthcare reform bill that includes a government-run insurance plan. … he said he would not lend his support to an effort to cut off debate on a bill including a government-run insurance program.” (Alexander Bolton, “Lieberman To Vote Against Public Option,” The Hill, 10/27/09)

• But Sen. Bernie Sanders (I-VT) Supports Robust, Medicare-Like Public Option. "The American people overwhelmingly want a public option for a variety of reasons … Correctly, they want a choice between a private insurance company and a Medicare-type plan. And they should have that choice." (Tony Romm, “Sanders Would Support Reconciliation To Break Republican Filibuster,” The Hill, 11/10/09)

Sen. Mary Landrieu (D-LA): “[I]’m Not For A Government-Run, National, Taxpayer-Subsidized Plan, And Never Will Be.” (Charles Babington, “Key Senators May Rebuff Obama On Health Care,” The Associated Press, 10/22/09)

• Sen. Roland Burris (D-IL): “I Would Not Support A Bill That Does Not Have A Public Option… That Position Will Not Change.” (Charles Babington, “Key Senators May Rebuff Obama On Health Care,” The Associated Press, 10/22/09)

Sen. Dick Durbin (D-IL) Supports Public Option With An Opt-Out Provision. “‘If we thought that just putting the trigger in meant that we’d end with 61 votes,’ [Durbin] explained, then that’s what leadership would have done. ‘But there were some [senators] that felt that that just didn’t go far enough moving toward a public option,’ said Durbin, who is himself a backer. ‘We have 60 people in the caucus,’ Reid said. ‘We’ll all hang together and see where we come out.’ … Durbin said that he is confident the progressive wing in the Senate is satisfied with the opt-out compromise.” (Ryan Grim, “Durbin: Progressives Forced Our Hand On Public Option,” The Huffington Post, 10/26/09)

• But Sen. Blanche Lincoln Says She’s “Ruled Out A Government-Funded And A Government-Operated Plan.” (NPR’s “Morning Edition,” 10/21/09)

Sen. Tom Carper (D-DE) Wants States To Create Their Own Public Options. CARPER: “The benefit of states creating their own options could be more competition, could be because of the greater competition, better affordability, lower prices for people. … They’re going to have to negotiate with providers, doctors, hospitals and so forth. And whatever is a better deal, the states can negotiate with hospitals and doctors and other providers, to lower the rates that they’ll be able to charge.” (“Sen. Thomas Carper Of Delaware Weighs In On Health Care Reform,” PBS, 10/8/09)

• But Sen. Bill Nelson (D-FL) Supports Public Option Where States Cannot Opt-Out For Several Years. “Bill Nelson supports public option but wants stronger state opt-out rules… Sen. Bill Nelson said he supports a public option health care plan and predicts Senate leaders will get enough support. ‘If there are a couple (senators) that are hanging out, the majority leader will have a prayer session with them,’ he said in an interview.” (“The Buzz: Florida Politics,” St. Petersburg Times, 10/27/09)