The Moderates Expand the Middle, Preparing to Take Back Center Stage

Following weeks of Democrat negotiations, Majority Leader Harry Reid (D-NV) took a risky position in announcing his not-so-moderate public insurance option – a move that could be a deal breaker on Capitol Hill, especially for the moderates.

On Monday, Reid announced his intention to include a public insurance plan that gives the States an opt-out approach for the uninsured. Reversing his October position with a proposal crafted by Senator Schumer (D-NY), the Reid proposal represents a compromise between both moderate and liberal factions.  It’s a clear gamble.  The proposal came at the expense of losing the support of Senator Olympia Snowe (R-ME) who provided the key swing vote in passing the Senate Finance Committee’s healthcare bill when she expressed “deep disappointment” in the outcome of discussions.  Despite that loss of support, Reid remained confident that the Senate would pass a public option, citing “… a strong consensus to move forward in this direction."

But, 24 hours later, the tsunami of backlash from Moderate Democrats hit the shores.  The first wave to hit was Senator Joe Lieberman (I-CT), who I’ve discussed in a past entryof The Washington Report.  He hit the airwaves saying he would support a Republican filibuster to block Reid’s healthcare bill.  In strongly opposing any form of a public option, Lieberman announced that he will vote with the GOP contingent on the Senate healthcare bill – unless the government-run plan is dropped.

But Lieberman was not the only centrist to oppose Reid’s proposal.  Senator Blanche Lincoln (D-AR), who is facing a difficult reelectionbid, also announced her reluctance to side with liberals.  Senator Ben Nelson (D-NE) remains skeptical of a government-run program and the subsequent tax burden and refused to make any decision on support before seeing the final copy of the bill and the CBO analysis.  Senator Mary Landrieu (D-LA) remained “skeptical” as well but was “open to a principled compromise.”  As I’ve said repeatedly – the moderates will take charge, one way or the other…

Many Democrats downplayed Lieberman’s filibuster threat.  “People are going to be all over the place,” said fellow Connecticut Senator Chris Dodd (D-CT).  Though a thorn in the side of Reid, Lieberman’s decision was not a surprise to most who are in the know.  A maverick politician, it is well known that Lieberman did not support a public option.  Yet, the White House expressed a sense of betrayal from the former Democrat Vice Presidential candidate especially after Obama stepped up to support Lieberman in retaining his powerful Chair of the Senate Homeland Security Committee when he became an Independent.  Many within the White House had hoped this move would foster a sense of unity between Lieberman and Pennsylvania Avenue, but clearly unity was not in the cards this week.

However, unity is not just an issue between political parties and independents.  The Democrats are struggling to find unity on their own!  With the threat of a Republican filibuster looming, Reid now begins the delicate task of political arm wrestling for support of his proposal.  While Tuesday represents a major setback for Reid to win 60 votes, he had some success.  Centrists such as Senator Kent Conrad (D-ND) were able to persuade Reid to create a public option that paid more than Medicare while including non-profit insurance cooperatives.  He now supports the Democratic healthcare proposal. Meanwhile Senator Evan Bayh (D-IN) was able to gain support for a repeal of the tax on medical device manufacturers, a key industry in Indiana.  His support brings the plan a step closer to fruition. Though neither Conrad’s nor Bayh’s support pushes Reid over the 60 vote hurdle, he is clearly trying to piece together a coalition that will guide healthcare reform through the US Senate.

Senator Bernie Sanders (I-VT), a fellow Independent of Lieberman who caucuses with Democrats, said it best in observing, “It just shows we have a long way to go on this.” While Congress is closer than ever to adopting comprehensive healthcare reform, with nine weeks left in the year, the prospect of a final bill seems to become more distant each week.

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