Tuesday, December 22, 2009

Democrats Face Challenge in Merging Health Bills

Sixty-four House Democrats, representing one-fourth of the House Democratic caucus, voted for stringent restrictions on insurance coverage of abortion. And 41 of them voted for passage of the House bill, so they constitute a crucial bloc. The bill was approved, 220 to 215, on Nov. 7.

But leading supporters of abortion rights in the House said they would not vote for a final bill if it included those restrictions, which they fear would curtail access to abortion for many women who already have insurance.

The House bill would establish a tax surcharge on income over $500,000 for individuals and over $1 million for couples. The Senate bill would tax high-cost employer-sponsored health plans and increase the Medicare payroll tax on individuals with incomes over $200,000 and couples over $250,000.

Lawmakers said they could envision a compromise mixing the two approaches.

More than 190 House members have gone on record against the Senate’s proposed excise tax on “Cadillac health plans,” which is also opposed by organized labor. But the White House and some health economists say the tax could help control health costs by encouraging employers to shop for cheaper policies that would not be hit by the tax.

It is unclear whether the House and the Senate will appoint a formal conference committee or just try to work out their differences in negotiations with Democratic leaders and committee chairmen from the two chambers. In any event, White House officials expect to play a huge role.

SOURCE: New York Times