Liberals See Problems With Some Elements Of Senate Health Bill

As the House and Senate prepare to reconcile their two healthcare reform bills, it is becoming clear that big compromises will need to take place.

While a pair of key Senate Democrats, Max Baucus (Mont.) and Chris Dodd (Conn.) met with President Barack Obama today to no doubt try and win support for their bill from the White House, supporters of the House version waged arguments against the Senate bill.

“There’s a real danger in the Senate plan that many working families needing health care will be forced to cut back...if the excise tax is imposed,” said former Clinton administration Labor Secretary Robert Reich referring to a proposal in the bill that would impose a 40 percent excise tax on the cost of individual insurance policies above $8,500 and on family policies above $23,000. Such cost-heavy plans are often referred to as ‘Cadillac’ plans.

“The notion that there are somehow ‘Cadillac’ plans out there...is a misnomer,” said Reich.

However, after meeting with House Democrats on Wednesday, it appears that the President favors urging them to remove provisions that would generate revenue through taxes on wealthy Americans in favor of adopting the Senate’s proposal.

Perhaps not willing to reveal her frustration over being asked to make concessions, House Speaker Nancy Pelosi sounded upbeat following the meeting.

“I think we’re very close to reconciliation, respectful of the challenges...the truth is that there is so much agreement in the bills but sometimes we approach the issue differently,” she said.

Supporters of the House bill also want the Senate to remove a loophole they say would allow insurance companies to charge higher rates to customers who posses pre-existing medical conditions.

“The Senate loophole will allow insurers to charge thousands of dollars more to people who have chronic conditions, to people who participate in a wellness program, but aren’t able to show a level of results that the insurance companies demand,” said Richard Kirsch with the organization Healthcare For America Now.

That provision, according to Sue Nelson with the American Heart Association, was inserted into the Senate bill by Sen. John Ensign (R-Nev.) during markup in the Finance Committee.

In an email to TRNS, a member of Ensign's staff responded by saying "Sen. Ensign believes that we need to do everything we can to encourage individuals to engage in healthy decision-making." The staff member referred to his amendment to promote employer-based wellness programs as "a reward-based OPTION, not a punishment system."