Reid Leads Democrats In Carving Out Favors For States On Health

October 20th, 2009|Josh Hudson
State

Those are provisions that Senate Democrats, including Majority Leader Harry Reid, put in an $829 billion health-care bill to shield constituents from measures intended to pay for the biggest overhaul of the medical system in four decades.

The result is the new policies may be unevenly administered, with some U.S. states getting preferential treatment, a possibility that has given Republican lawmakers ammunition to attack the legislation.

“Its going to hurt the bill and raise the level of cynicism about Washington politics,” said Senator Lamar Alexander, a Tennessee Republican. “The provisions ought to be applied to all of the states.”

The number of special provisions is likely to grow as the full Senate begins debating the measure in coming weeks. Because Democrats are unlikely to win many Republican votes, individual lawmakers will have leverage to demand changes to satisfy parochial interests.

At the same time, those provisions may make it easier for Congress to approve a sweeping bill by giving lawmakers more of a stake in legislation they may not otherwise fully support.

Doing Their Jobs

“Members being able to convince colleagues of the special circumstances in their states?” said Senator Kent Conrad, a North Dakota Democrat. “Thats what members are here to do — represent their state.”

Senate Democratic leaders are meeting behind closed doors with Obama administration officials to combine measures approved by the finance and health committees. Debate may begin next week on the legislation, which would expand health coverage to millions of uninsured Americans and place new restrictions on insurance companies.

Health-insurer stocks have lost ground in the last month on concern the overhaul will hurt profits. The Standard & Poors index of 13 managed-care companies dropped 13 percent, led by Hartford, Connecticut-based Aetna Inc.

Lawmakers have already made exceptions to some of the biggest policy changes under consideration.

$100 Billion Cut

The bill that came out of Senator Max Baucuss finance committee cuts more than $100 billion from Medicare Advantage to help fund the overhaul. Some lawmakers say they are concerned the elderly will see a reduction in benefits.

The measure doesnt identify which states could get the $5 billion. The language is so confusing — those eligible include retirees in “counties where the MA benchmark amount in 2011 is equal to the legacy urban floor amount” — that even congressional aides said they arent sure.

Nelson said the aid isnt directed solely at Florida. “It affects several states, including New York,” he said. “Were trying to grandfather in seniors so that they dont lose the benefits they have.”

Wyden said it would go to states like Oregon that “would face hardships” under Medicare Advantage cuts.

Help for Unions

Lawmakers such as Senator Robert Menendez of New Jersey pushed for exceptions to a tax on expensive insurance plans. The tax would be phased in more slowly in states the government determines have the highest costs.

Democrat John Kerry, whose state of Massachusetts is likely to end up on the list, said the tax may disrupt his states own efforts to expand health coverage.

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