Senator Baucus Steps Out

This week was notable for a lot of reasons that extend far beyond the politics of Congress. Across the pond, Manchester United beat out Manchester City 4 – 3 in a classic encounter at The Derby.  Roger Federer was fined for swearing at the US Open (and, now John McEnroe is an advisor?  My, how the world changes…). To top it off, the 90th National Football League season kicked off (Go Packers!!!) with much anticipation akin to the political clash related to healthcare reform which is building across various fronts in Congress. 

And despite all of the games of the weekend, my Mom calls after a long flight from Delhi to weigh in as well. She said: “This politics thing makes me sick.  We need to solve the problem so that we can take care of the problem the right way!”  Hey Mom – I’m with you. The problem is trying to get some consensus on the right way. To make matters worse the roar of Congressman Wilson’s outburst on the floor of the joint Congressional session – “You lie!!” reverberated not just across the nation but throughout the world. I recall the words of Pastor Rick Warren who provided the invocation at President Obama’s inauguration when he said, “As we face these difficult days ahead, may we have a new birth of clarity in our aims, responsibility in our actions, humility in our approaches and civility in our attitudes, even when we differ.” I think that everyone needs to step back, take a breath and consider Pastor Warren’s admonish – and – most importantly – take it to heart.

Senator Max Baucus (D-MT) has been working for nearly a year to finalize details on the $856 billion America’s Health Future Act. Appropriating certain details from the President’s plan, Senator Baucus also included other key elements that were left out of the Obama plan. The Baucus Bill establishes a mandate for all Americans to carry health insurance by 2013 or face a penalty up to $3,800 a year for families. But, the proposal stops short of creating a publically funded insurance option for citizens to purchase their health insurance. Instead, Baucus proposes an approach whereby healthcare tax credits are used to help low and middle class families purchase health insurance in the private market while simultaneously providing a tax credit for small businesses to help them offer coverage to their employees. Both sides get the benefit – the employee and the small employer. Baucus would also allow people who like their coverage the choice to keep it.  And, at the same time he proposes to eliminate limits on the amount of coverage provided by employers. Going further, the Baucus Bill ends discrimination based on pre-existing conditions and forces insurers to only hike the cost of premiums based on factors like age, tobacco usage, and other similar factors. 

In an approach similar to President Obama’s plan, the Baucus Bill proposes a new insurance exchange – an electronic marketplace where consumers could shop for insurance and compare varying coverage options. The difference is that in the Baucus Bill the exchange is established at the state level and extends benefits to the uninsured through a vastly expanded Medicaid program.  This approach will greatly increase the amount of funding states will receive from the federal government to care for the poor as part of the Medicaid program. The bill also makes those who have incomes under 133 percent of the federal poverty level (= $30,000 / year for a family of four) able to receive Medicaid coverage.

The Baucus Bill does establish limits on out-of-pocket expenses and restricts such costs to 13 percent of household income, but co-payments and deductibles are not included in their calculation. This could prove to be a difficult problem for Baucus since the broad swath of the middle-class would not receive the proposed government tax credit since co-payments and deductibles are not included in the formula.

Now that the bills are on the table, the dialogue and debate are shifting to the need for bi-partisan support. Healthcare reform continues to march in an uphill battle. Max Baucus as a six term Senator understands the need for bi-partisan support. It’s why his bill hit the floor later than others.  To date, the most controversial proposal of the healthcare debate has been the inclusion of a public insurance option. Realizing the need for Republican support Baucus specifically excluded this option in his bill. Instead the Baucus Bill calls for the creation of private, nonprofit insurance cooperatives to compete with the private insurance market – an idea first proposed by Senator Kent Conrad (D-ND) another leading centrist leader on the Senate Finance Committee. This is an idea I have been advocating for weeks. Cooperatives – it seems to me – are the best way to reach across the divide between Democrats, who desire a publically funded option and Republicans who oppose a government takeover of healthcare. The cooperative seems to be a middle ground. Baucus has not called for the “trigger” option so the debate is still open on that front…

The Sunday talk shows were filled with the Obama Blitz. He appeared on five of the most notable talkfest shows – a record if I’m correct!!  It’s clear that the Administration is pulling out all of the stops. As I note below, there are only so many open items an Administration can manage. They need to get the healthcare debate moved in some direction or the backdrop of other pressing, international issues could further derail an issue of importance  to the people of the US. 

Baucus opined on Wednesday that, “This is a good bill. This is a balanced bill. This bill can pass the Senate”. We are now at half-time in the political game of healthcare reform. Baucus has weighed in – so has the President and the Senate HELP Bill is also available as an option. We now anticipate that the players will head to the quiet of the back rooms to modify their strategies and engage the age old process of jawboning.  While certain elements of these packages will no doubt make it through, the next several weeks will determine the final outcome. Regardless, I hope we all adhere to columnist Kathleen Parker’s call for an end to “a political era of uninhibited belligerence.”

The views and opinions expressed herein are my own and do not necessarily represent the views and opinions of Dell Services or its affiliates.