Senate OKs Health Care Reform Bill

Published: Mon 28 Dec 2009

Lucas Eichmann

The Obama administration moved one step closer to providing health insurance ultimately to more than 30 million citizens as the U.S. Senate approved its version of health care legislation in a 60-39 vote on Christmas Eve.

The approval by all 58 Democrats and two independents came nearly two months after the House passed its version of health care reform. It's up to both chambers to find common grown before returning to their respective legislative bodies for compromise votes.

The sticking points likely will include taxes and policy on abortion in addition to the House wanting a government-run health plan. President Obama has indicated he would like to sign the bill before he delivers his State of the Union address late next month.

The Senate's 10-year, $871 billion version leaves the employer-based health system still in effect as a way to ensure Americans with coverage would see no changes. But large companies would be penalized if they don't offer affordable health insurance, which could cause their workers to request government assistance for coverage.

The Senate bill would expand Medicaid, the government-run health program for the poor, as well as offer tax subsidies to help lower- and middle-income families buy insurance. There would be a penalty of up to $750 for any person who doesn't act to get coverage.

Republicans fear the measure would mandate large regulatory and tax liabilities on individuals and businesses while putting the federal government deeper in debt.

However, the nonpartisan Congressional Budget Office forecasts the legislation would trim the federal budget deficit by $132 billion during the next 10 years. This would occur through tax increases on health-care businesses and spending cuts occurring mainly through Medicare reimbursements to health-care providers.

By the end of the upcoming decade, 94 percent of legal residents would have insurance coverage, according to the budget office, compared to the current 83 percent. This would be the most expansion of government assistance since Medicare, the health-insurance program for seniors and the disabled, began in 1965.

The new legislation also would eliminate lifetime dollar limits on insurance coverage and the risk of losing coverage in case of illness. By 2014, insurers could not turn down applicants due to pre-existing health conditions.

Insurers say changes could increase premiums because more people with ailments would need to be covered while those who are healthy could decide to forego coverage. State-based health-insurance exchanges would be created for purchases by people without employer assistance as well as some small businesses.