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Obama Seeks to Rally Senate Democrats on Final Health-Care Plan

Dec 6, 2009 @ 01:52 AM, US, Laura Litvan

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Dec. 6 (Bloomberg) -- President Barack Obama plans to headto the U.S. Capitol to press Senate Democrats to agree onhealth legislation as lawmakers struggle to resolve disputesover issues including a proposed government-run insurance plan.

Democrats met throughout yesterday to seek an alternativeto Senate Majority Harry Reid’s plan to create the new nationalprogram to cover the uninsured. Opposition within his partyleaves Reid at risk of falling four votes short of the 60 heneeds to pass the legislation, the most sweeping overhaul of thenation’s health-care system in more than four decades.

Obama’s scheduled visit comes as the bill’s backers need ajolt to come together, said Massachusetts Democrat John Kerry.

“We have to talk about how to put the final piecestogether,” Kerry said. “It’s good to hear from the presidentnow, because it’s getting to that stage where you have to cometo a decision with your heart as well as your head.”

Reid called the rare weekend session to meet his deadlineof getting a bill by year-end. Republicans, unified inopposition, forced the Democrats yesterday to reiterate theirsupport for cutting more than $40 billion in home health-careservices funding under Medicare. It was the latest Republicaneffort to highlight the bill’s potential impact on the elderly.

Senate Minority Leader Mitch McConnell of Kentucky saidRepublicans see the debate stretching into 2010 and that theygain the more the public learns. Republicans say Obama’s visitreflects a weakening Democratic position.

‘Wrong Direction’

“The vote tally must be going in the wrong direction,”said Senator Richard Burr, a North Carolina Republican.

The $848 billion Senate bill would make the biggest changesto the health system since creation of the government Medicareprogram for the elderly in 1965. The 10-year measure is designedto cover 31 million uninsured people and curb medical costs.

Like a $1 trillion bill that the U.S. House passed on Nov.7, the Senate plan would require all Americans to get healthcoverage or pay a penalty. It would expand the Medicaid healthprogram for the poor, set up insurance-purchasing exchanges andprovide subsidies for those who need help buying policies.

Reid, a Nevada Democrat, is working behind closed doors tosettle issues ranging from how strictly to prohibit federalfunding for abortions to how to shape the so-called publicoption.

Insurers’ Compensation

An amendment targeting insurance executive pay, proposed byArkansas Democrat Blanche Lincoln, may come up for a vote today.It would cap tax-deductible salaries at $400,000 instead of thecurrent national limit of $1 million. The legislationbefore the Senate already has a $500,000 cap. The lawmakerspostponed the vote yesterday.

The Senate also turned back a Republican bid to restore thehome health services funding. The Republicans are trying to drawattention to the impact on the elderly from some $400 billion inproposed Medicare savings.

Debate could come as early as tomorrow on a bipartisanamendment that would allow imports of lower-cost prescriptiondrugs from countries such as Canada, a proposal that is opposedby Eli Lilly & Co. and other drugmakers. That proposal wasdrafted by North Dakota Democrat Byron Dorgan and MaineRepublican Olympia Snowe.

Senator Ben Nelson, a Nebraska Democrat, this week willoffer an amendment preventing federal funds from being used forabortions in an effort to bring the legislation in line withwhat the House passed. Nelson is threatening to oppose the billwithout the language.

Public Option

He also joins three other senators in the Democratic caucuswho say they won’t back a bill that has a public option.

The public option has been a lightning rod in the debatesince Democrats began drafting the legislation in the spring.All Republicans in both chambers oppose creation of thegovernment program, which many say could crowd out privateinsurers and become a precursor for a government takeover ofhealth care.

Senate Democrats Lincoln and Mary Landrieu of Louisianaand Independent Joe Lieberman of Connecticut join Nelson inopposing such a program.

Snowe participated in one small meeting yesterday ofSenate Democratic moderates. She said she and Kerry are revivingher proposal to have a national government insuranceprogram only as a fallback, and utilized in states where thereis evidence private insurance isn’t affordable enough for peoplewith lower incomes. It may be offered as an amendment on thefloor, she said.

Can’t Back Reid

Snowe said she won’t back what Reid has put on the Senatefloor because the public program is in the legislation, with astate opt-out.

Senator Mark Begich, an Alaska Democrat, said senators arediscussing other approaches centering on requiring states whereinsurance premiums are deemed too high to provide an alternativeto private insurance that would be provided by a non-profitentity.

“My biggest concern is the cost to the government at theback end,” Begich said of the public option.

Arkansas Democrat Lincoln said the government should be outof the picture completely.

“We want to increase options and choices for ourconstituents,” she said. “I think we can get there.”

To contact the reporters on this story:Laura Litvan in Washington at llitvan@bloomberg.net

Last Updated: December 6, 2009 00:01 EST

Source: Bloomberg


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