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This Week in Washington

TWIW Sneak Peek

11/20/2009, Vol. XXX, No. 39

Senate Releases Health Care Overhaul Measure; Cloture Vote is Next Step
On Nov. 18, Senate Majority Leader Harry Reid unveiled the Senate’s health care overhaul bill, H.R. 3590, following a Congressional Budget Office estimate that the bill would cost $849 billion over 10 years and would reduce the federal budget deficit by $127 billion over the same period. The CBO also estimated that the bill would extend medical coverage to 94 percent of Americans and would reduce the number of uninsured by 31 million. The proposal would finance health care for the uninsured in part by reducing federal spending on Medicare, Medicaid and other federal health programs by $491 billion through 2019, according to CBO’s estimate. The proposal would also be financed by taxes on cosmetic surgery and on expensive health care insurance plans.

Senate Democratic leaders are working on getting the 60 votes necessary to close debate and end a filibuster. They are focusing efforts on three moderate Democrats, Sens. Blanche Lincoln (D-Ark.), Mary Landrieu (D-La.) and Ben Nelson (D-Neb.). Part of this effort included a pledge from Reid to allow floor amendments that would alter or remove the public option. Some Republican senators say they oppose the government-run option to compete with private insurance plans in the proposal, even though the bill includes an opt-out provision for states that choose not to participate.

Other critical provisions of the bill include:

  • An increase in the Medicare payroll tax of 0.5 percent, to 1.95 percent, for individuals who earn more than $200,000 and couples who earn more than $250,000;
  • Expansion of Medicaid eligibility to include all non-elderly Americans with income below 133 percent of the federal poverty level;
  • A surtax on high-cost “Cadillac” insurance plans to help finance coverage of the uninsured. Plans that cost more than $8,500 for individuals and $23,000 for families would be subject to the surtax. States with high health costs would receive a $3,000 increase in the thresholds.

Other Articles in This Issue:


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