Senate Health Care Bill Prepares to Move Forward

With amendment debate completed and an official Congressional Budget Office (CBO) score in hand, the Senate Finance Committee is poised to vote on and pass their modified bill out of committee on Tuesday October 13.  The bill will then head to the Senate floor once it is merged with the Senate Health, Education, Labor and Pensions Committee bill by Majority Leader Reid's staff.  Senate Democrats plan to have the health package on the Senate floor by the week after next. Following the more than week long mark-up, CBO determined the Finance bill would cost $829 billion over 10 years, $55 billion more than Chairman Baucus' original mark. CBO predicted the Finance Committee bill will reduce the federal deficit by $81 billion and provide up to 94 percent of all Americans with health care coverage. During debate several contentious issues were not resolved. In the end, the public option was not added, employer mandates remain, and Cadillac plans will still being taxed. In the House, the Chairman of the House Ways and Means Committee, Charlie Rangel expects to get his bill completed this week and sent to CBO to be scored.  Democratic leaders in the House are looking at options to help pay for healthcare reform, including instituting a windfall profits tax on insurance companies.  Timing of a bill moving in the House remains fluid as Democratic leaders try to address the concerns of their liberal and conservative members. AGC remains concerned over employer mandates, the penalties for companies that cannot afford to provide health care, the uncertainties in coverage requirements, the affect on temporary and seasonal employees, the limitations on FSAs, HSAs and HRAs, and expanded COBRA mandates. Even with the CBO score of the Senate Finance bill, 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.