After much delay, Baucus unveils healthcare plan

September 16, 2009

After weeks of delay as he negotiated for Republican support, Senate Finance Committee Chairman Max Baucus Wednesday unveiled a 10-year, $856 billion plan to overhaul the U.S. healthcare system.

The measure still has no promise of Republican support, even though Baucus dumped the public insurance option favored by most Democrats and agreed to other Republican changes in hopes of producing a bipartisan plan.

SENATE/HEALTHCAREBaucus predicted it would ultimately garner Republican votes.

“This is a good bill. This is a balanced bill. It can pass the Senate,” he said.

“It is fiscally responsible,” he added. “It reduces the deficit in 10 years. And it controls healthcare spending in the long run.”

Early reaction was not great. headlined it “Baucus Bill Bust” because of the lack of Republican support. Consumer Watchdog charged it would force middle class families to pay 20 percent of their incomes on healthcare.

Julius Hobson, a policy adviser at the Bryan Cave law firm, noted it “not only lacks Republican support but it is not clear if it even has ‘full’ Democratic support.”

But the Blue Dog coalition — an important grouping of fiscally conservative congressional Democrats — praised the measure as “an important step forward” because it would not add to the federal deficit and would take steps to reduce long-term healthcare costs.

“Meeting these standards, also set forth by the president, is critical to reining in deficits and protecting our economy for future generations of Americans,” Representative Stephanie Herseth said in a statement on behalf of the Blue Dogs.

The Baucus plan would require all U.S. citizens and legal residents to have health insurance.

Subsidies would be provided on a sliding scale to help low-income people purchase insurance. Some 46 million people in the United States have no health insurance coverage.

Under the program envisioned by President Barack Obama, people who do not have insurance through their employers could purchase a plan through an insurance exchange.

The insurance exchange would include plans by private insurers as well as a public insurance option. Obama argues a public plan is needed to provide effective competition to drive down costs. Opponents fear it would drive private insurers out of the market.

The public insurance option has been strongly opposed by Republicans. Hoping to circumvent opposition, the Baucus plan proposes the creation of non-profit cooperatives to offer insurance in competition with private insurers.

In a speech to Congress recently, Obama said he favored a public option. But he urged liberal Democrats to be open to other ideas, like cooperatives, that could achieve the same goal of improving competition.

A pdf of the plan, the “America’s Healthy Future Act of 2009″ is available here.

What do you think?

Does it have broader appeal than the Democratic measures already introduced in the House and Senate? Or does it still contain elements that will generate wide opposition?

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Photo credit: Reuters/Jim Young (Baucus after a healthcare meeting on Tuesday)


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I heartily admire Obama’s try to not be partisan but in this case I think parts of the GOP are so off the deep end that he needs to move forward while the time is ripe and put in place the best possible healthcare option. Once people get used to a system that is well-regulated and balances a private and public option, there’ll be enough popular support that it will not easily be undone. There are times for compromise and times to put forth what’s in the best interests of all and let the chips fall as may. I hope the ‘blue’ Democrats will have enough guts to go with what’s best.

Posted by W. Spring | Report as abusive

W Spring,you hit the nail on the head all the bills and mountain of paper have not been able to tie down what is the problem,and you did with two words WELL REGULATED,that,s it! the vast majority the American people know that with the government that is a total IMPOSSIBILITY.

Posted by brian lee | Report as abusive