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President Stamps His Imprint on ‘ObamaCare’

For the first time since the start of the health care reform debate, the president has publicly placed his imprint on the legislative package. He has proposed compromises on key elements that are different in the bills passed by the House and Senate.

The summary of what we can now finally call “ObamaCare” without the ridicule from opponents is in a pdf online. It was posted Monday by the White House, 72 hours in advance of the summit meeting Thursday between President Obama and members from both parties of Congress.

As a representative of Main Street, I urge Congress to adopt the proposals. Easy for me to say.

The ObamaCare plan is a start. It bridges the gap between essential elements of both bills.

It avoids discussion on two contentious elements.

One is on the abortion funding question which in my mind is a red-herring considering the magnitude of the sweeping reforms offered in the two bills and the president’s proposals.

The other is no public option to compete with the private insurers. Although most progressives favor a single-payer system modeled after Medicare, the president’s proposal offers a market-based pool offering what is billed as affordable options to individuals, families, employees and small businesses.

One thing is certain. All Americans except the poorest will be mandated to buy health insurance or pay a penalty. Businesses employing 50 or more workers also will be fined if they do not offer shared health insurance costs.

Where the president really stepped his foot in is proposals stronger than the House and Senate bills over fighting fraud, abuse and other criminal acts involving the billing of Medicare, MediCaid and private insurers by doctors, contract providers and individual miscreants who game the system. Those convicted will be jailed and their names placed on a universal data base.

Deleted for good measure from the Senate bill will be Nebraska Sen. Ben Nelson’s deal that would have given his state free MediCaid increases forever. Instead, the president proposes more MediCaid funding paid by the federal government to all the states.

The plan would establish review boards in each state supervised by the U.S. Health and Human Resources agency to justify private insurance premium increases and forever end the practice of denying an individual coverage because of preexisting conditions.

ObamaCare would cover an additional 31 million Americans who now cannot afford health insurance and reduce the deficit by $100 billion over the next 10 years – and about $1 trillion over the second decade – by cutting government overspending and reining in waste, fraud and abuse.

I can’t vouch for the deficit savings Obama concocts because we’ve heard such glowing promises in the past with vastly different results.

I am also unclear how the Senate in particular will enact such a proposal into law either by reconciliation or challenging the 60-vote filibuster rule. As I understand Senate rules, it appears what the president is proposing could be handled by reconciliation — 50 plus one vote for passage.

If the Senate Republicans hold the line at 41 votes, which they are likely to do with their new buddy Scott Brown of Massachusetts aboard, I would force them to actually take the Senate podium and talk a blue moon.

The Republicans would be seen for what they are by the American people — obstructionists.

Easy for me to say. Majority Leader Harry Reid doesn’t return my phone calls.



9 Responses to “President Stamps His Imprint on ‘ObamaCare’”

  1. DaGoat says:

    I read the Obama plan and actually there is a lot to like in it. I see two potential problems off the bat. One is the tax on employers who don't offer insurance, which will rightly be portrayed as anti-jobs.

    The other is I don't buy the budget projections and believe the CBO will eventually probably say this increases the deficit. The House and Senate versions were pretty shaky financially and the Obama version makes most of it's compromises on the funding side, which makes me think the math will be even shakier.

  2. DLS says:

    The federal price controls on rates or rate increases is low-grade demagoguery. I'm really surpised he would stoop to such an appeal-to-base-motive gimmick but I wonder if he's just doing it for show or for puffing up the Dems' initial bargaining position (assuming that they really intend to bargain with the GOP, which we've not seen evidence of so far). If this is serious, it was another inept move, and if some of the Dems really intended to bargain with the GOP, and this was just posturing before the negotiations, this just works against confidence the Dems will ever start acting in good faith.

    “Deleted for good measure from the Senate bill will be Nebraska Sen. Ben Nelson’s deal that would have given his state free MediCaid increases forever. Instead, the president proposes more MediCaid funding paid by the federal government to all the states.”

    I suspected this might happen. (After all, where a bribe was necessary before, why risk losing that vote by taking the bribe away? Plus opening the federal coffers to bribe everybody eliminates any harsh feelings and conflict.) It's shameful if the Dems boast they “eliminated” the bribe, in this case.

    The move makes sense otherwise, simply to be consistent and equitable with the bribery (it's logical).

  3. DLS says:

    “reconciliation”

    They're low-lifes if the Dems do it now, after what's being advertised is more rather than less excess in particular. On the other hand, I'm also looking at it in this way: If the GOP continues to oppose everything the Dems want to get passed (irrespective of how bad it is), sooner or later the Dems will have to break the lock, or force it to be released later, by taking the PR hit with reconciliation just to start passing legislation again. In this light, too, Harry Reid needs to be like, ahem, Ronald Reagan about attacking Libya: “If necessary, we shall do it again.”

  4. dduck12 says:

    A couple of points. From: http://www.lifeandhealthinsurancenews.com/News/…

    “In every state, health plans must provide data showing that requested premium increases are necessary to meet the expected rise in health care costs,” Zirkelbach says. “Creating a new duplicative layer of federal premium regulation on top of what states are already doing is unnecessary and will only add regulatory complexity and increase health care costs.”
    – The mandates/fees/taxes are still weak and healthy individuals may opt to pay them instead of obtaining insurance, hence adverse selection will result in the insured pool (more un-healthy people).
    – Union members are still getting a tax exemption on Cadillac plans, while non-union people have to pay tax.
    – The fraud and enforcement appear to be good.

  5. Leonidas says:

    This is likely a worse and more partisan proposal than either the Senate or House bills. It has some good points, as did those earlier propossals but has even more liberal baggage.
    First I take you to the Wall Street journal for a few snippets:
    ObamaCare at Ramming Speed
    http://online.wsj.com/article/SB1000142 … 04352.html

    The White House wants to create another layer of review that will be able to reject any rate increase that is “unreasonable or unjustified.” Any insurer deemed guilty of such an infraction by this new bureaucracy “must lower premiums, provide rebates, or take other actions to make premiums affordable.” In other words, de facto price controls.

    Meanwhile, the new White House plan further vitiates the remnants of cost-control that remained in the House and Senate bills. Now the highly vaunted excise tax on high-cost insurance plans won't kick in until 2018, whereas it would have started in 2013 in the Senate bill, and this tax will only apply to coverage that costs more than $27,500.

    Very few plans ever reach that threshold, and sure enough, this is the same $60 billion deal the White House cut in December with union leaders who have negotiated very costly benefits. Now it is extended to all to avoid the taint of political favoritism.

    It concludes:

    The larger political message of this new proposal is that Mr. Obama and Democrats have no intention of compromising on an incremental reform, or of listening to Republican, or any other, ideas on health care. They want what they want, and they're going to play by Chicago Rules and try to dragoon it into law on a narrow partisan vote via Congressional rules that have never been used for such a major change in national policy. If you want to know why Democratic Washington is “ungovernable,” this is it.

    now to Libertarian Reason:
    ObamaCare, the Upgrade
    http://reason.com/blog/2010/02/22/obamacare-the…

    In other words, a lot is potentially riding on this updated version. So is it any better? If by “better” you mean “includes more spending and more taxes than the Senate bill,” then the answer is yes!

    To finance the changes, President Obama proposes raising taxes even more than the Senate plan does. Under Obama's proposal, higher income workers would see their portion of the Medicare payroll rise even higher. The tax would create a marriage penalty by applying to individuals earning over $200,000 and couples earning over $250,000. When the original version of the Senate health care bill was produced, the Medicare tax on those earning over $200,000 was supposed to be 0.5 percent. In the version that passed in December, the tax had been raised to 0.9 percent. And though it hasn't even been made law yet, Obama is raising the Medicare tax for the third time, by assessing an additional 2.9 percent tax on income “from interest, dividends, annuities, royalties and rents…” This follows the historical pattern of payroll taxes, which have increased 20 times since first introduced in 1935, going from a combined total of 2 percent (including employer/employee contributions) to 12.4 percent today.

    and concludes:

    All of which is to say it strongly resembles the rumored House/Senate compromise plan that failed to emerge in the wake of Scott Brown's upset win in Massachusetts. Will it work? Like Keith Hennessey, I doubt it. Nothing here is likely to garner additional Republican support. And Democrats, with good reason, are still skittish about this bill. As Hennessey suggests, this looks more like a blame-management focused exit strategy than a way forward.

  6. DaGoat says:

    If only Jerry could have worked Sarah Palin into the title he'd be getting more comments. I believe this is the only post so far taking a look at the substance of Obama's proposal and hardly anyone seems to notice.

  7. Leonidas says:

    The White House just killed the Public option yet again, take cover as liberal heads will be exploding with the news:

    Gibbs: The Public Plan Doesn't Have The Votes
    http://www.huffingtonpost.com/2010/02/2 … 73443.html

    The White House made it official on Tuesday: the president doesn't think the votes are there to get a public option passed through reconciliation and consequently won't make a push to include or pass the provision.

  8. DLS says:

    “The White House just killed the Public option yet again, take cover as liberal heads will be exploding with the news”

    Actually, that's another explanation of having something alarming like the new federal rate regulation idea in the new attempted legislation, to keep the angry savages assuaged.

  9. Dr J says:

    I don't see much in it that reforms–or even positions us to reform in the future–the real cost drivers. Insurance companies get a larger role that looks even less like actual insurance. Medicare will still be paying for quantity rather than quality. Citizens will still be carefully insulated from the cost of the services they get.

    So it seems like a wasted opportunity. I would have hoped the popular revolt we've seen would have provided leverage to force bigger changes on the doctors, the unions, the insurers, and the other vested interests.

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