As Senate Abandons Public Option, Healthcare Legislation Moves Closer to a Vote
BY LAUREN UZDIENSKI, DECEMBER 10, 2009
In the second week of debate, the Senate moved closer to finalizing its healthcare reform bill as the chamber scrapped its plans for a public insurance option. Instead, private payers would have the opportunity to participate in a low-cost plan overseen by a non-profit entity, and Medicare coverage would be expanded to some people between the ages of 55 to 64. This change increases the bill's odds of passing the Senate.
The new plan would allow the government's Office of Personnel Management, which manages healthcare plans for federal employees and members of Congress, to institute a low-cost national health plan. Private payers will establish non-profit entities to oversee the plan, which would be available via a public exchange. Additionally, Medicare would be expanded to up to three million Americans, aged 55 to 64, who have difficulty obtaining coverage elsewhere.
The compromise follows pressure from "a small group" of Democrats who would not support the bill with the public option. Further issues still threatening the bill include coverage for abortion services, and before the bill can move ahead to a vote, the Congressional Budget Office must evaluate the costs and full Democratic caucus must approve the revised bill. From there, the bill needs 60 votes to pass the Senate, and the final bill will be reconciled with the version the House passed last month.
The medical device industry tax is one of the points that will be finalized in the combined version of the bill; the House passed a 2.5% tax on devices at the point of sale, while the Senate proposed a $2 billion annual tax appropriated by market share. So far, the industry has come out in favor of the House tax, which is thought to be less burdensome than the Senate fee. AdvaMed in particular has advocated for the time frame advanced in the House version, which would delay the institution of the tax until 2013.
