EasyToInsureME Health Insurance Quotes Reform Weekly

This Week in Health Reform: November 13, 2009

This week's debate
focused on last Saturday's approval of health care reform legislation
by the House of Representatives. Some members of the media have raised
concerns over the costs associated with the Democrat version of health
care reform, highlighting the challenges Democrats might face
politically as health care reform legislation evolves in Congress.

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House and Senate Negotiations

House
Passes Health Care Reform Legislation: Late last Saturday, the House
narrowly passed its health care reform package with a 220-215 vote,
which included opposition from 39 Democrats. One Republican, Rep.
Joseph Cao (R-LA), voted in favor of the bill. President Barack Obama
visited Capitol Hill on Saturday morning to encourage House Democrats
to pass the legislation.

The $1.1 trillion legislation passed by
the House would extend coverage to an estimated 36 million Americans,
vastly expand Medicaid, establish a government-run option, and create
individual and employer mandates. It would also bar insurers from
denying coverage based on pre-existing conditions or from dropping
coverage for those who become sick. To pay for the expansion, the House
passed measures including a $400 billion cut in Medicare spending over
the next 10 years and new taxes on the wealthy. While the Congressional
Budget Office (CBO) estimates that the bill will reduce the federal
deficit by about $104 billion over a decade, the bill's longer term
impact remains unclear, and some Democrats are still raising concerns
over its costs.

In order to secure enough votes for passage,
House Speaker Nancy Pelosi (D-CA) agreed to hold a vote on an amendment
that would specifically bar the public plan from covering abortion and
prohibit those who receive insurance subsidies from using the subsidy
to purchase private plan options that cover abortion. The amendment was
approved 240 to 194, with 64 Democrats in favor. Abortion rights
supporters, however, vowed to oppose the final legislation if it
remains in the amendment, highlighting the difficult road ahead.

AARP
and AMA Back House Bill: The House reform legislation received a boost
last Thursday, winning the support of two highly influential lobbies -
AARP and the American Medical Association (AMA). The announcements came
at a critical time as the House Speaker was working to shore up the
last votes needed to pass the reform legislation.

Small
Businesses Voice Concern: Groups and coalitions representing small
businesses showed their opposition to the health care reform late last
week, sending letters to lawmakers urging them to vote against the
House health care reform bill. In a statement Saturday, Susan Eckerly,
Senior Vice President of the National Federation of Independent
Business, said, "With unemployment at a 26-year high, the punitive
employer mandates and atrocious new taxes will force small business
owners to eliminate jobs and freeze expansion plans at a time when our
nation's economy needs small business to thrive."

Obstacles
Remain for Senate: While Senate Majority Leader Harry Reid (D-NV) waits
for the CBO to review the Senate's health care proposal, many hurdles
remain before securing the 60 votes needed for it to pass. These
obstacles include the incorporation of a public option, issues
associated with federal funding for abortion, and how to pay for the
health care overhaul. Recent reports indicate that Sen. Reid is
favoring an increase in payroll tax on the wealthy to help pay for
reform. In addition, U.S. drug makers, medical-device manufacturers and
insurers are gearing up for another opportunity to reduce proposed
industry fees in the Senate version of reform legislation.

With
continuing pressure from White House officials to pass health care
reform legislation by the end of the year, Sen. Reid has indicated that
he will bring the reform package to the Senate floor for debate as
early as Monday. However, Senators have indicated that, more
realistically, voting will take place before Christmas, with the final
passage in mid-January. In an effort to spur on Senate Democrats,
Former President Bill Clinton - whose health care reform efforts failed
15 years ago - told the senators over lunch last Tuesday that "passing
health care reform is not only a moral issue but also an economic
imperative."

Public Opinion

American Support Slips for
Passing a Health Care Reform Bill: A new Gallup Poll released last
Monday shows that Americans have moved in a more negative direction on
whether or not a new bill should be passed into law. Thirty-eight
percent of Americans now say they would advise their member of Congress
to vote against a new health care bill this year, while 29 percent
would advise their member to vote for it. In addition, 41 percent say a
new health care bill would make the U.S. health care system better in
the long run, while 40 percent say it would make things worse.

Other Activities

Republicans
Mobilize to Increase Opposition: In an effort to drum up opposition to
the Democratic health care reform bills, Senate Republican Conference
Chairman Lamar Alexander (R-TN) indicated that Republicans are
"quietly" planning approximately 50 in-person and telephone town hall
gatherings over the next three weeks.

Looking Ahead

CBO
estimates of the cost of the Senate health care reform package are
expected late this week or early next week, which will clear the way
for Senate Majority Leader Harry Reid to bring the legislation to the
Senate floor for debate as early as Monday.