October 3, 2009
Senate
After a second week of debate, the Senate Finance Committee completed its consideration of amendments to the America’s Healthy Future Act late Thursday evening. The Committee anticipates a vote next week after receiving a score from the Congressional Budget Office (CBO). Then, efforts to merge the Finance Committee bill with the bill passed by the Health, Education, Labor and Pensions (HELP) Committee will follow. Once the Finance and HELP bills are merged, the CBO will score the combined package before the final bill is brought to the Senate floor for a vote as early as the week of October 12.
The NAM weighed in this week by opposing several key amendments that would significantly change the course of health reform. Senator Rockefeller’s (D-WV) public plan amendment was defeated by a vote of 15-8, with all Republicans and five Democrats voting against. A similar amendment offered by Senator Schumer (D-NY) also failed 13-10. That being said, public plan proponents, including new HELP Chairman Harkin (D-IA) are not inclined to back down on their efforts to include a public plan in the final Senate bill. Senator Rockefeller is also in ongoing negotiations with Senator Baucus (D-MT) to include provisions that could make some minimal modification to ERISA plans.
On a positive note, the Committee passed 18-4 an amendment supported by the NAM and offered by Senators Ensign (R-NV) and Carper (D-DE) that would allow health plans to provide financial incentives for people to quit smoking, exercise more and engage in other healthy activities, despite concerns expressed by some that it could raise insurance premiums for those who do not participate in wellness programs.
On the financing side, the Committee approved an amendment offered by Senator Lincoln (D-AR) that would eliminate the tax deductibility of executive compensation paid by health insurance companies in excess of $500,000. While the restriction would have a significant impact on companies affected directly, it also continues a dangerous precedent of legislative restrictions on private sector executive compensation. The Committee also approved an amendment that would allow individuals age 65 and older to continue to take an itemized deduction for medical expenses that exceed 7.5 percent of adjusted gross income, through 2017. The $7-billion cost of the amendment—offered by Senator Nelson (D-FL)—is offset by eliminating the tax deduction for penalties paid by employers who do not meet the bill’s coverage mandates.
House
House negotiations are ongoing, with a rough timeline for floor consideration after October 19. Speaker Pelosi has stated the bill will include a public option; however, negotiations are occurring on everything from regional disparities in Medicare rates to abortion funding to access for undocumented immigrants. Also on the table is a possible modification of the pay-fors in the House bill. Leadership is considering an increase in the income level to qualify for the surtax or may shift to the current Senate plan that includes an excise tax on expensive health plans.
Senate
After a second week of debate, the Senate Finance Committee completed its consideration of amendments to the America’s Healthy Future Act late Thursday evening. The Committee anticipates a vote next week after receiving a score from the Congressional Budget Office (CBO). Then, efforts to merge the Finance Committee bill with the bill passed by the Health, Education, Labor and Pensions (HELP) Committee will follow. Once the Finance and HELP bills are merged, the CBO will score the combined package before the final bill is brought to the Senate floor for a vote as early as the week of October 12.
The NAM weighed in this week by opposing several key amendments that would significantly change the course of health reform. Senator Rockefeller’s (D-WV) public plan amendment was defeated by a vote of 15-8, with all Republicans and five Democrats voting against. A similar amendment offered by Senator Schumer (D-NY) also failed 13-10. That being said, public plan proponents, including new HELP Chairman Harkin (D-IA) are not inclined to back down on their efforts to include a public plan in the final Senate bill. Senator Rockefeller is also in ongoing negotiations with Senator Baucus (D-MT) to include provisions that could make some minimal modification to ERISA plans.
On a positive note, the Committee passed 18-4 an amendment supported by the NAM and offered by Senators Ensign (R-NV) and Carper (D-DE) that would allow health plans to provide financial incentives for people to quit smoking, exercise more and engage in other healthy activities, despite concerns expressed by some that it could raise insurance premiums for those who do not participate in wellness programs.
On the financing side, the Committee approved an amendment offered by Senator Lincoln (D-AR) that would eliminate the tax deductibility of executive compensation paid by health insurance companies in excess of $500,000. While the restriction would have a significant impact on companies affected directly, it also continues a dangerous precedent of legislative restrictions on private sector executive compensation. The Committee also approved an amendment that would allow individuals age 65 and older to continue to take an itemized deduction for medical expenses that exceed 7.5 percent of adjusted gross income, through 2017. The $7-billion cost of the amendment—offered by Senator Nelson (D-FL)—is offset by eliminating the tax deduction for penalties paid by employers who do not meet the bill’s coverage mandates.
House
House negotiations are ongoing, with a rough timeline for floor consideration after October 19. Speaker Pelosi has stated the bill will include a public option; however, negotiations are occurring on everything from regional disparities in Medicare rates to abortion funding to access for undocumented immigrants. Also on the table is a possible modification of the pay-fors in the House bill. Leadership is considering an increase in the income level to qualify for the surtax or may shift to the current Senate plan that includes an excise tax on expensive health plans.
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