Health Care Bills Move Closer to a Vote

On October 13, the Senate Finance Committee finished its two-week markup of a health care reform bill with a 14 to 9 vote to report the bill out of the committee. The only Republican to support the measure was Senator Olympia Snow (R-Maine).   The final committee vote had been delayed to give the Congressional Budget Office (CBO) time to provide a cost analysis of the bill and the 150 amendments that had been considered during the process. CBO forecasted the bill will cost $829 billion over 10 years, reduce the federal deficit by $81 billion and provide up to 94 percent of all Americans with health care coverage. Several members of the Committee who voted in favor of the bill did so reluctantly, as they only support moving the debate forward but are unwilling to endorse the bill as it is currently drafted.  The issues of major concern remain the inclusion of an employer mandate, tax on "Cadillac" plans, and whether to include a public option. Despite the vote in the Finance Committee, work remains to bring a bill to the floor for a vote. The Senate Health, Education, Labor and Pensions Committee passed its own version of health care reform legislation in July and must now be merged with the Finance Committee's version.  The process is underway and is being spearheaded by Senate Majority Leader Harry Reid (D-Nev.) and administration officials. The process could become contentious as liberal and moderate members of his party square off over the inclusion of a public option. The Democratic leadership must try to craft a bill that can receive 60 votes on the Senate floor.  The leaders plan to hold a vote at the end of October. The House remains in a similar situation. Three committees of jurisdiction passed health care reform legislation in July; however each committee passed a separate bill. The Democratic leadership in the House must craft one bill before it can be sent to a vote by the entire House. The House leaders are confronted with the task of satisfying multiple factions of Democrats in order to garner enough support for passage. No Republicans are expected to support the measure, and groups of Democrats have been outspoken against inclusion of a public option and some even argue that the bill is too moderate. In the end, the bill is expected to easily pass without Republican support. The leaders are hoping to hold a vote the first week of November. Due to the drastically different versions of the House and Senate bills, they will be required to be conferenced together if they pass each chamber before the President can sign one bill into law. As of now it is not guaranteed that the bills could reach this process, but the President and Congressional leaders remain committed to passing a bill this year, likely sometime between Thanksgiving and Christmas. Over the next several weeks AGC will continue to advocate against an employer mandate and the penalties for companies that cannot afford to provide health care. AGC remains concerned that the bills create uncertainties in coverage requirements, negatively affect temporary and seasonal employees, and impose limitations on FSAs, HSAs and HRAs, and expand COBRA mandates. Despite the recent CBO score, AGC remains concerned that the exorbitant costs of the proposed plans will result in increased taxes on individuals and companies.  AGC supports reform that increases coverage, choice and competition in the marketplace. The inclusion of a public plan in the legislation will likely drive private insurers out of the market and the projected savings from the proposed legislation may never materialize, resulting in further tax increases to make up the shortfall.