What’s Happening Outside the Senate?

Just because Senate Finance has made their position clear doesn’t mean the fight over healthcare reform is over.  The whole debate is clearly going to be an uphill battle for both Republicans and Democrats. A lot of work remains, and the really hard part may be reconciliation between the House and Senate versions of healthcare reform. 

While most of the action has been on the Senate side for the last couple of weeks, the House is also actively engaged in the healthcare reform question.  You should expect the spotlight to shift to Representative Charlie Rangel (D-NY), the Chairman of the House Ways and Means Committee.  He is standing firm on an income tax surcharge on the wealthiest taxpayers, but he is shying away from alternative ideas such as a tax on insurance companies for high-end coverage (= “the Cadillac plans”) and a White House plan that would limit the tax deductions for the claims of wealthy individuals.  The tax on the Cadillac plans is a hot button for the labor unions, which have some of the richest healthcare benefits packages. 

At the same time, Rangel  is working hand-in-hand with Speaker Nancy Pelosi (D-CA), who while stating that any House bill must contain a public option, is also lining up the troops for an alternative discussion with the Senate.  Pelosi and Rangel must consider and work with the 52-member Blue Dogs, a coalition of conservative Democrats lead by Representative Mike Ross (D-AR).  Several issues, such as immigration rights and cost, will loom large as points of contention.  If you are still confused take a look at this chart developed by Gray & Associates, LC which is useful in comparing the various bill floating around the House with the Senate Finanace Committee.  Many on the House side feel that the public option will fall by the wayside.  I expect that they are right.  So, the alternatives will now come to the forefront.

Expect the White House to move into center stage after the Senate crafts its final proposal.  As I reported last week, both Vice President Biden and First Lady Michelle Obama are now picking up the pace to serve as public spokespersons in the healthcare debate.  On Wednesday, both Obama’s economic adviser, Larry Summers, and healthcare expert, Nancy-Ann DeParle, visited Capitol Hill to meet House Democrats. White House Chief of Staff Rahm Emanuel visited The Hill as well. Signaling an “all hands on deck” approach, the Obama administration is beginning to coordinate all of their resources to support passage of a comprehensive healthcare reform package.

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