With an August Deadline Looming, Legislators Struggle with the Cost of Healthcare Reform
BY LAUREN UZDIENSKI, JULY 20, 2009
Healthcare reform legislation appears no closer to a vote than it did a few weeks ago, with the Congressional Budget Office determining that the latest drafts of bills would do little to curb healthcare costs. CBO Director Douglas Elmendorf said the proposals fail to "reduce the trajectory of federal health spending by a significant amount" and "significantly [expand] the federal responsibility for healthcare costs."
The pricetag associated with overhauling the healthcare system has been estimated at about $1 trillion. Source for these funds include a graduated surtax on incomes exceeding $350,000, though this would not cover the expense. Another possible solution suggested by Sen. Max Baucus is taxing employer-paid healthcare benefits, though President Obama has adamantly opposed that option and campaigned against a similar proposal from John McCain last fall. Previous suggestions include extracting further savings from Medicare and pharmaceutical companies, though the President has reportedly eased up on these threats to pharma.
This week Congressional committees will continue to shape bipartisan legislation that would adhere to the President's commitment to curbing costs. Senate Majority Leader Harry Reid (D-NV) said a bill may reach the Senate floor next week and could pass before the August recess, though this timeline may be ambitious.
