CQ TODAY ONLINE NEWS
June 14, 2009 – 2:20 p.m.
Senators Discuss Components of Health Care Overhaul
By Kathleen Silvassy, CQ Staff
Health care coverage — and how to pay for it — dominated the Sunday talk shows, with key Senate leaders expounding on a variety of initiatives.
Senate Minority Leader Mitch McConnell , R-Ky., warned of overhaul efforts that would result in “putting Washington between you and your doctor” and said the focus should be on improving the existing health care system.
“We already have the best health care in the world. We know it costs a lot, but we have the best health care in the world,” he said on CBS’s “Face the Nation.” “And I don’t think many Americans want to start having to, you know, wait in line and start getting government permission for procedures. We need to be very careful about taking the wrong steps.”
On the same program, Senate Majority Whip Richard J. Durbin , D-Ill., countered that “the current system is unsustainable. There are talking points on the other side of the aisle about creating some fear of change and what this might mean. ... the president has said — we’ve all said — if you like your current health care insurance, your plan, you’re going to be able to keep it. But we need to fix some things in the system. The costs are out of control.”
In his weekly radio address, President Obama outlined a series of Medicare and Medicaid cuts he said would slice $313 billion in payments over 10 years so the savings could be applied toward overhauling the health system.
The cuts come on top of Medicare and Medicaid revisions Obama requested earlier this year in his fiscal 2010 budget proposal; together with those cuts the White House is now proposing a total of $622 billion in Medicare and Medicaid revisions over 10 years, most of it from Medicare.
Durbin said Obama’s plan to overhaul the health system would reduce premiums and add more people to health care rolls — resulting in a net effect of lowering costs.
On “Fox News Sunday,” Sen. Charles Grassley, R-Iowa, said Congress is more likely to support requiring individuals to buy health insurance than mandating coverage through employers.
“There isn’t anything wrong with it, except some people look at it as an infringement upon individual freedom,” he said. “But when it comes to states requiring it for automobile insurance, the principle then ought to lie the same way for health insurance, because everybody has some health insurance costs, and if you aren’t insured, there’s no free lunch. Somebody else is paying for it.
Taxing Benefits
Among Democrats, Senate Finance Chairman Max Baucus of Montana has been the strongest advocate of removing the tax exclusion on employer-paid health benefits, a plan unpopular with labor unions and many liberal Democrats. Obama criticized a related proposal by Sen. John McCain , R-Ariz., during the 2008 presidential race.
Grassley, the top Republican on the panel, said the initiative is possible “but it’s going to take the president of the United States, who made a big deal out of McCain so-called increasing taxes — and the McCain plan was a very good plan, but the president drove it into the ground, won the election.
“It looks like he’s looking at doing similar to what McCain wanted to do,” Grassley added, “and I think for the benefit of making this bipartisan, presidential leadership in this area would be very good based upon the tune of the last campaign.”
Sen. Christopher J. Dodd , D-Conn., appearing on the same program, said taxing health benefits is a bad idea.
“The idea that you’re going to have people out there that are struggling to make ends meet today, they’re falling further and further behind with wages, people losing jobs, losing homes — to turn around and say, ‘You basically have no change in your health care plan, and by the way, we’re going to tax you now for those benefits’ — we can actually pay for this in the ways that I’ve suggested — the $654 billion that’s allocated already, the $300 billion in savings we get out of Medicare.”
Government Option
Senate Budget Chairman Kent Conrad , D-N.D., said on CNN’s “State of the Union” Sunday he doubts there are enough votes to support Obama’s plan for a government health insurance option. He has proposed a compromise plan that would set up membership-based cooperatives using government help but not run by the government.
Most Republicans and some Democrats object to the government getting into the health insurance business, saying it would hurt private insurers. Vice President Joseph R. Biden Jr. said on NBC’s “Meet the Press” that the administration still wants an option for the public to join a government health insurance program that would compete with private insurance companies.
Health and Human Services Secretary Kathleen Sebelius , appearing on “State of the Union,” said another reason for the government option is that “in many parts of the country, private insurers have no competitor, in a state like my own home state of Kansas. There is a dominant insurance company in a lot of the states. So, we created a public option for state employees, so they could choose side by side benefits and prices.
“The president does not want to dismantle privately owned plans,” she said. “He doesn’t want the 180 million people who have employer coverage to lose that coverage. The president feels that having a public option side by side, same playing field, same rules, will give Americans choice and will help lower costs for everybody. And that’s a good thing.”
“You know, it’s funny how this business of having a public option,” said Grassley. “In other words, the 350 insurance companies need some sort of competition. You know, I wish I would hear that from the Democrats that Medicare and Medicaid ought to have some competition, because that’s a government-run program.”




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