Decisions Close on Public Option in Merged Bills

by: Chris Bowers

Mon Oct 26, 2009 at 12:47


The merger process is nearly complete. We should know by Wednesday, and possibly as early as tomorrow, what sort of health care reform bills both the House and Senate Democratic leaderships will send to the floors of their respective chambers. Of course, we will also know what sort of public option will, or will not, be included in those bills. Here is the run of play on the merger process in each chamber:

Where the Senate stands
The big news today is in the Senate.  Reportedly, Harry Reid is ready to send a merged bill to the Congressional Budget Office.  Last week, Reid indicated that when he finally sent a bill to the CBO, it would mean he had made a decision on the public option:

"I've had a number of meetings in my office, dealing with Democrats and Republicans on the public option aspect of it...when the decision's made to send this on to the CBO, I will have made a decision as to what we're going to do with the public option.

Today, reports indicate that Reid is sending a bill to the CBO, and that it includes the opt-out public option:

Senate leaders plan to submit the bill to the Congressional Budget Office for a cost estimate as soon as Monday, and make the legislation public as soon as Tuesday, according to a person familiar with the negotiations.(...)

The bill to be brought to the Senate floor would create a new public health-insurance plan, but would give states the choice of opting out of participating in it, a proposal that Senate Majority Leader Harry Reid of Nevada backed last week.

It is highly likely that the opt-out will be on Senator Schumer's "level playing field" public option.  Even before the opt-out, this makes it weaker than even the worst-case scenario for the public option in the House (which I describe below).  Still, it would be a trigger-less public option, and change the debate from whether or not there will be a public option, to what sort of public option there will be.

Reportedly, as of Friday, Reid was only one or two votes from reaching 60 on this public option.  If he really is sending the opt-out public option to the floor, then he must have either rounded up the remaining votes, or bet that no Democrat would publicly vote against a motion to proceed to a floor debate for the health care bill.

Either way, Reid appears to be making these decisions without any particular assistance from the White House.  No matter which of the two main rumors you believe--that the White House is staying neutral or that the White House is pushing the trigger--the White House does not appear to be pushing Reid toward the opt-out.  This is a decision he is making on his own.

Harry Reid is holding a press conference at 3:15 p.m., eastern, to discuss the Senate merger process.  We will be covering it.

Where the House stands can be found in the extended entry.

Chris Bowers :: Decisions Close on Public Option in Merged Bills
Where the House stands
In the House, the decision on what sort of public option to send to the floor is also close.  Back on Friday, I was told that the decision would be made "early next week," which right now means "early this week."

We should know by Wednesday, at the latest, what sort of bill Speaker Pelosi intends to send to the floor.  Given the stakes involved, the bill that is sent to the floor will already have 218 "solid yes" votes for passage before the vote takes place.

The basic run of play is that the leadership began pushing a bill with a public option not only at Medicare +5% rates, but at Medicare +5% rates indefinitely.  (This is instead of pushing a public option with Medicare +5% for only the first three years, before moving to negotiated rates.)  As of Friday, the leadership was close--less than ten votes--from feeling it had enough (that is, 218) "solid yes" votes on health care reform with this version of public option.

I unfortunately have no new updates on where the count stands.  Keep in mind, however, in moments like these where the leadership is scrounging up final votes, many "solid yes" members can smell a chance for a concession, and switch to "undecided" in order to send a pet project back home to their districts.  So, the leadership is both less than ten votes away, and also potentially more than 40 votes away.

If the leadership fails to round-up the necessary 218 "solid yes" votes, the next step would be to start negotiating changes to the legislation to with wavering members.  These negotiations would involve both public option and non-public option related matters, as the primary roadblock for many members is not actually the public option itself.

In terms of changes that might be made to the public option during this process, the first step would probably be to return to the public option with Medicare +5% rates for only the first three years of its existence.  If no agreement can be forged even with that compromise, a public option with negotiated rates from the start would be sent to the floor.  The public option in the health care bill that passes the House will not be weakened beyond that point.

The stronger the public option in the House bill, the better the negotiating position for the public option in the eventual conference committee.


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Well, my Senator delivered... Thank goodness! (4.00 / 1)
Honestly, I'm not big on the state opt-out. I think individuals should make the choice on the public option, not the state governments. Still, it's an otherwise trigger-free bill and I commend my Senior Senator for sticking to his guns.

Still, I'm hoping the state opt-out can be tossed out in Conference... And I'm hoping Obama won't actually try to twist Reid's arm in including "Co-President" Snowe's ridiculous trigger.

Yes, Virginia, there are progressives in Nevada.


worth thinking about (0.00 / 0)
While I am also dubious when it comes to the opt-out, consider this choice:

1--An opt-out public option with Medicare +5% rates
2--A national "level playing field" public option

It is not clear to me which of those choices is preferable.


[ Parent ]
#1 would transform (0.00 / 0)
political campaigns and legislative agendas at the state level and create more room for people on the left to make demand-side arguments in general.

I'd be curious to see if GOP controlled legislatures in large states - especially Florida - would actually opt-out of an effective public option when doing so would present potentially huge political costs for Republicans.          


[ Parent ]
NO bill being discussed vauely resembles the "public option" (4.00 / 1)
...designed by Hacker as an incrementalist step toward single-payer. None of them achieves universality, serious cost controls, etc.

ALL of them offer vastly increased profits to the bad actors in the US healthcare system, rewarding their crimes.

The toxic, Orwellian distortions of language demonstrated by the wide-spread acceptance and usage of lobbyist-crafted language -- like the current bizarro-world "public option" -- is truly frustrating.

When progressives, lefties, peace&justice folks, etc cede the definition of the limits of the battlefield to the enemy...ah, well. Now back to your regularly scheduled programming.


Pony plan (0.00 / 0)
So, a change in language is enough to get 60 votes for your pony plan in the Senate?

Conduct your own interview of Sarah Palin!

[ Parent ]
Bizarro world (0.00 / 0)
While it is true that none of these public options come close to Hacker's original vision, your language is pretty hyperbolic.

Just because something isn't close to Hacker's original policy proposal doesn't mean it isn't a "public option." A public option is simply a government operated health insurance plan.

To call any use of the term "public option" "Orwellian" because it does not meet the definition laid out in an eight-year old policy paper--that is pretty bizarre.

Hacker's policy paper is not a sacred text.


[ Parent ]
"sacred text" -- I don't have any, personally... (4.00 / 1)
...though I acknowledge the term and try to respect it.

For the record, I wasn't a supporter of Hacker's proposal. I support fully socialized medicine -- from education & training to research to manufacture of pharmaceuticals and equipment to hospitals & clinics to employment of physicians, nurses, technicians and other caregivers. A bit of a "left" perspective, one might say.

Socializing ONLY the insurance component (an un-necessary, and thus wasteful, component in my view) -- as in a single-payer system -- is a huge compromise for me, and one I've been supporting for over 35 years.

None of my political goals involve tinkering with neoliberal fantasy/religion "market solutions."

As to a "pony": I've valued them as a ride and pack animal, even, to some extent, companion. And in certain circumstances, tasty, properly prepared.


[ Parent ]
Stupak abortion caucus? (0.00 / 0)
Last time I looked, Stupak was saying he had around 40 Dem reps (41 is the magic number on a full turnout) to vote against the rule on the health care bill.

How's that coming?

If the rule passes, I'd expect the only opportunity for Stupak and Co to cause mayhem with the bill would be an abortion motion to recommit: that might be attractive to some Dems who need to vote for the bill, but also want abortion cover.

Some malcontent Dem reps who are not abortion fire-eaters (and are a solid yes for the bill in everyone's count) might still vote for such a motion to stick it to the man -leaving the leadership in an awkward spot.  


The Hill piece is from Saturday (0.00 / 0)
He may well be bullshitting - and he was speaking to CNS News.

But - it's recent bullshit (the interview was last Thursday); and The Hill ran it.


[ Parent ]
I will see what I can find out (0.00 / 0)
It has been a serious threat in the House merger process, but I hadn't heard much about it over the last couple weeks.

Once again, the leadership won't send a bill to the floor unless they know they have the votes. So, when they unveil the bill, we will know right away whether or not Stupak has the advantage.


[ Parent ]
He's bullshitting.... (0.00 / 0)
He's got maybe 20, but those 20 aren't going to vote with us, regardless, so they don't really count...

The leadership doesn't seem worried about it...

REID: Voting against us was never part of our arrangement!
SPECTER: I am altering the deal! Pray I don't alter it any further!
REID: This deal keeps getting worse all the time!


[ Parent ]
Availability? (0.00 / 0)
Hi Chris,
Thanks for the update. Couple of questions:
1.  Will there be eligibility restrictions for the public option? Or will it be available to everyone?
2.  What about private insurance and costs?
I saw an analysis of the previous House/Senate bills that was pretty disturbing.  I was disturbed because it seemed like the mandatory insurance might eat up 50% of a family's income after paying for basic expenses.  See:
http://www.cbpp.org/cms/index....


Answers (0.00 / 0)
1. It has been pretty widely stated that the public option will not be available to everyone. Only those without insurance from their employers.

2. It is unlikely that the current health care bills will reduce the costs of private insurance.  


[ Parent ]
re: employer (0.00 / 0)
Only those without insurance from their employers.

the employer can decide not to provide health insurance and pay a penalty, yes? any idea if that penalty is more or less costly to the employer than offering health insurance?


[ Parent ]
It looks like... (0.00 / 0)
I think the WSJ article said "up to $750 per employee." I assume that's per year?

Conduct your own interview of Sarah Palin!

[ Parent ]
Availability (0.00 / 0)
It's only going to be available to those who do not get insurance through their employer. I'm not sure why employers are prevented from using the exchange and public option to provide for their employees. The WSJ article today says there will be no employer mandate in the Senate, but will instead include the dubious "free-rider" provision which will make it more expensive to hire low-income people who are receiving subsidies.

Employers with more than 50 workers wouldn't be required to provide health insurance, but they would face fines of up to $750 per employee if even part of their work force received a government subsidy to buy health insurance, this person said.


Conduct your own interview of Sarah Palin!

[ Parent ]
And does the President stand anywhere? (0.00 / 0)
The latest seems to be he supports the Insurance Industry's favorite...with trigger options.

Quelle surprise!


Not really (4.00 / 1)
The Insurance Industry's favorite is no public option at all, no trigger, no nothing.

Conduct your own interview of Sarah Palin!

[ Parent ]
And I think everyone who's saying, "ignore Obama" (4.00 / 1)
pretty much has it right, sad to say. I just hope that once Congress finishes dealing with health care and climate change they'll start looking at FISA and other national security issues again.

If the White House is just going to be a machine for stamping "approved" on Democratic legislation emerging from Congress, I think that's preferable to anything I've seen from the administration thus far, except for maybe CAFE standards.


[ Parent ]
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