Senator Reid has unveiled the latest Senate Democrat version of a health care bill that the Majority Leader hopes to have considered by the full Senate within a week. CIANJ will publish its At Issue brief on Monday, but in the interim readers will have to make do with a Washington Post story and CBO estimate. Oh, the horror.
The legislation is largely as advertised - consisting of an individual mandate, smaller fines on companies that do not offer insurance to employees, and new rules for insurance companies which include a requirement to accept all applicants. The largest gulf between the House and Senate remains financing. The House favors a Medicare tax increase for high wage earners, while the Senate prefers a tax on so-called "Cadillac Plans" with individual premiums in excess of $8,500 and family premiums costing more than $23,000. Both the House and Senate plans include the so-called "public option", but prohibit individuals from excercising a private option to not purchase insurance.
Senator Reid proclaims his package can make health insurance affordable to more than 95% of legal US residents. For her part, Speaker Nancy Pelosi declared,
House Democrats look forward to a constructive debate in the Senate and to working together to achieve historic reforms that will make health care more affordable and strengthen our economy
We must, once again, point out the difference between making health insurance more affordable and health care more affordable. The subsidies, tax credits, penalties and mandates in both the House and Senate all surround Americans' access to health care. However, doing that while keeping us on a fee-for-service model will not lower the steady increase of health care costs. It is not insurance companies that make insurance expensive - it is the cost of the professionals, technology and administration set up to administer the care.




