Pelosi and House Democrats roll out health care reform bill

October 29, 1:07 PMLiberal ExaminerRaymond Gellner

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 House Speaker Nancy Pelosi (D-CA) speaks about health care during a 
 news conference on Capitol Hill in Washington DC on October 29, 2009.
 (AP Photo/Alex Brandon)

Washington, D.C. - On Thursday, House Speaker Nancy Pelosi unveiled the final House version of the health care reform bill. The total cost of the deficit-neutral bill is $894 billion dollars over a ten year period and contains the more moderate form of the public insurance option amongst other reform initiatives.

In order to keep it deficit neutral, the bill contains a 5.4% tax on individuals who make over $500,000 per year and couples who make over $1,000,000 per year. In addition, cost savings due to the elimination of waste within the Medicare and Medicaid health insurance programs will be reallocated to help pay for the reforms.

In the end, the government-run health insurance proposal which was chosen by the House of Representatives was the “negotiated rate” public insurance option. According to CNN, Democratic leadership aides stated that in this version of the plan the health care providers would be able to negotiate reimbursement rates with the government.

The Democrats had wanted to have a reimbursement system similar to the type Medicare has, where rates are imposed upon the providers, although with a percentage increase to those rates. It was counter argued, however, that health care providers in rural areas would receive lower reimbursements under such a plan.

The bill being proposed in the Senate also has a “negotiated rate” public insurance option; however, it also contains an “opt-out” clause for states which choose not to participate in the program.

At the unveiling ceremony on the steps of Capitol Hill, Speaker Pelosi stated that Congress was "on the cusp of delivering on the promise of making affordable, quality health insurance available to every American — and laying the foundation for a brighter future for generations to come." She added, “The bill is fiscally sound, will not add one dime to the deficit as it expands coverage, implements key insurance reforms and promotes prevention and wellness across the health system.”  In fact, she further said that the bill would reduce the deficit by approximately $30 billion over a ten year period.

House Majority Leader Steny Hoyer (D-MD) remarked, "For Americans struggling with the cost of health care, this is an urgently needed bill. This is an idea whose time has come."

The House bill contains a section which eliminates the anti-trust exemptions which private health insurance companies have enjoyed since 1945. According to the Associated Press, exemptions which will be cut deal with the health insurance industry’s ability to conduct market allocation, price fixing and bid rigging.

In addition to a public insurance option and the repeal of anti trust exemptions, this bill also requires individuals to have health insurance, makes it mandatory for most companies to offer health insurance, and increases eligibility for the Medicaid health insurance program to those whose incomes are less than 150% of the poverty level. 

For additonal articles on health care reform, please see:
In health insurance reform, the GOP refuses to fight for Americans
President Obama attacks lies from the health insurance companies

Copyright © 2009 by Raymond Gellner