Update on Health Reform

 February 3, 2010


This Week in Health Reform

Federal Legislative Overview

House and Senate

House and Senate Democratic leaders remain at an impasse on merging their respective health care reform bills. Senate Majority Leader Harry Reid (D-NV) stated that they will not move forward on any health care reform measures before Republican Scott Brown is sworn in as Massachusetts’ junior senator.

Both party leaders decided to wait and hear what President Obama was going to say about health reform in his first State of the Union Address on Jan. 27. In it, he urged Congress to continue its work on health care reform, and outlined his agenda that focused heavily on reviving the economy to boost employment and reduce the budget deficit.

In an excerpt on health care reform from President Obama’s speech, he stated, “Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan. It would reduce costs and premiums for millions of families and businesses. And according to the Congressional Budget Office – the independent organization that both parties have cited as the official scorekeeper for Congress – our approach would bring down the deficit by as much as $1 trillion over the next two decades.”

Read President Obama’s full speech at:

http://www.whitehouse.gov/the-press-office/remarks-president-state-union-address

The Republican response was given by newly-elected Governor Bob McDonnell at the Virginia State House. In an excerpt from his speech, McDonnell stated, “All Americans agree – we need a health care system that is affordable, accessible and high quality. But most Americans do not want to turn over the best medical care system in the world to the federal government. Republicans in Congress have offered legislation to reform health care, without shifting Medicaid costs to the states, without cutting Medicare, and without raising your taxes.”

Read Governor McDonnell’s full speech at:

http://www.cbsnews.com/stories/2010/01/27/politics/stateofunion/main6148483.shtml?tag=cbsContentWrap;cbsContent

Health Care Reform Next Steps

Congressional leaders continue to consider options for moving forward on health reform legislation following President Obama’s State of the Union address. Serious consideration is being given to taking action – possibly as early as next week – on a number of narrowly focused bills, some of which may be structured with the goal of attracting bipartisan support. Consideration of these bills is not intended to preclude action on comprehensive health reform at a later date.

One of the first bills likely to move to the House floor could be an antitrust bill that would repeal portions of the McCarran-Ferguson Act pertaining to health insurance issuers and medical malpractice issuers. This legislation, known as the Health Insurance Industry Antitrust Enforcement Act of 2009, was proposed last year in the Senate by Senator Patrick Leahy (D-VT) and in the House by Representative John Conyers (D-MI). It was ultimately included in the House health care reform bill, but not in the Senate reform bill.

As reported last week, one of the potential options for Democrats to pass health care reform legislation was to use the budget reconciliation process. Democratic leaders are purportedly continuing to weigh a two-track process in which the House would clear the Senate health bill, and then the Senate would use the filibuster-proof reconciliation process to incorporate a series of compromises with the House. Senate Majority Leader Reid said last week, “[Budget reconciliation is] something that we’re looking at, very closely. That’s where a lot of the procedural problems come in. It’s real tough to do it the right way, and we don’t know how to do that yet.”

In the meantime, the House will continue to focus on smaller health care bills. Speaker of the House Nancy Pelosi (D-CA) stated that her party will successfully complete their work on health care reform that they began last year. Pelosi said, “We’ll go through the gate. If the gate is closed, we’ll go over the fence. If the fence is too high, we’ll pole vault in. If that doesn’t work, we’ll parachute in. But we’re going to get health care reform passed for the American people.”