Former CBO Director: Public Option Won't Help Health Care

By Leah Valencia, University of New Mexico- Talk Radio News Service

Former Congressional Budget Office Director and George W. Bush economic adviser Doug Holtz-Eakin said Monday that a public option will not solve the fundamental problems in the U.S. health care system, warning lawmakers that it would ultimately present the same problems as Medicare.

“Public plans are not going to be able to negotiate any more effectively with every local hospital and doctor in a geographic area than private insurers,” Holtz-Eakin said during a conference call hosted by the Galen Institute. “Indeed they might negotiate worse.”

Holtz-Eakin said that the options for a public plan had a remarkable resemblance to Medicare, and if it were to reimburse on the basis of Medicare payment rates, it would only add to the problem.

“Medicare payment policies are one of the problems with the American health care system,” he said. “It is not something we want to spread more broadly throughout the system, it is something we want to move away from.”

Holtz-Eakin noted that the other widely discussed option to run a public plan like a private insurance company would not increase competition because it would be too difficult for the government to politically cut out select hospitals.

“That leads us right to the solution 'let’s have more competition in the insurance market and that has nothing to do with a public option',” he said. “It is something we do not need in the debate. We need real reform.”

Senate Finance Committee Prepares For Baucus Bill Vote

Travis Martinez, University of New Mexico/Talk Radio News Service

As the Senate Finance Committee prepares to vote on the America's Healthy Future Act, Chairman Max Baucus (D-Mont.) used his opening remarks to congratulate the committee's members on reaching this point and urge the commitee to help further the legislation.

“Now pretty much everything’s been said. Now it’s time to get the job done," said Baucus. "The scores are in, and I am proud to say that our bill passes the test."

Sen. Olympia Snow (R-Maine.), who has been viewed by Democrats as a possible Republican ally on the bill, used her opening statement to ask CBO Director Douglas Elmendorf to keep updated analyses of the bill as it proceeds to the Senate floor, stating that it is “critically important [for senators] to be vigilant.”

Sen. John Kerry (D-Mass.) addressed the recent study by PricewaterhouseCoopers, describing it as “flawed and completely incorrect."

Baucus interrupted Sen. Orrin Hatch's (R-Utah) opening remarks, stating that the Republican Senator was taking too long and asking Hatch to be courteous to other senators by adhering to the time limit. Baucus tried to limit Sen. Jon Kyl's (R-Ariz.) opening statement as well, a move that visibly frustrated Kyl.

The landmark bill was confronted with 564 amendments, of which the committee considered 135. There were in total 79 roll-call votes. The committee adopted 41 amendments in total.

Tuesday marks the 8th day the committee has met to tackle the bill, making this the longest amount of time the committee has worked on a single piece of legislation in 22 years.

Senate Finance Committee Rejects Amendment For Tighter Abortion Regulations

The Senate Finance Committee voted no today to an amendment introduced by Sen. Orrin Hatch (R-Utah) which states that “federal tax payer dollars will not be used to pay for subsidized abortions or the new plans and programs created in this bill.”

The amendment failed by a 10-13 vote.

Prior to the introduction of the amendment, the America’s Healthy Future Act stated “federal funds continue to be prohibited from being used to pay for abortions unless the pregnancy is due to rape, incest or the life of the mother is in danger.”

In its current state, the bill requires insurance companies to segregate private money, which comes from premiums, and federal money to ensure public funds are not being used to pay for abortions.

Sen. Hatch’s amendment also stated that women would have the choice to purchase a separate policy that includes abortion coverage.

Prior to the Committee’s vote, Chairman Baucus said, “Basically this is a health care bill, this is not an abortion bill. We are not changing current law.”

Baucus Accuses Kyl Of Stalling Markup Of Health Care Reform Bill

Travis Martinez, University of New Mexico - Talk Radio News Service

While the third day of the Senate Finance Committee's markup of the "America's Healthy Future Act" opened Thursday with an exchange of bipartisan jokes, it quickly turned serious as Chairman Max Baucus (D-Mont.) painted Senator Orrin Hatch (D-Utah) and other members of the conservative caucus as defenders of the status quo. Baucus also accused Sen. Jon Kyl (R-Ariz.) for stalling the markup process.

Senator Chuck Grassley (R- Iowa) strongly criticized Medicare drug benefits and doughnut-hole dual eligible Americans, saying that the Baucus bill, “would undermine the [Medicare] part D program. Added Grassley, "The [Congressional Budget Office] is like God around here,” a reference to CBO estimates that the nation would face increased deficits if the bill is passed.

Democratic committee members on Thursday said they would focus on gaining the backing of the centrists in their own party, particularly Sen. Blanche Lincoln (D-Ark.). In addition, Democrats were expected to attempt to win over the support of Sen. Olympia Snowe (R-Maine), a moderate Republican who is viewed as a potential swing vote.

With 564 amendments, the markup of the America's Healthy Future Act 2009 is expected to continue into next week.

Baucus Shoots Down GOP Amendment

Travis Martinez, University of New Mexico- Talk Radio News Service

While Democrats on the Senate Finance Committee welcomed and praised the work from the Republican members during the continuation of the markup of America’s Healthy Future Act, Chairman Max Baucus (D-Mont.) worked fast to shoot down an amendment proposed by Sen. Orrin Hatch (R-Utah), calling it "Unconstitutional", due to the fact that it requires a congressional agency to issue an order that has consequences towards the executive branch.

According to Baucus, the Republican Senator did not have enough data to back up an amendment that would require Congressional Budget Office certification for cuts made to Medicare advantage.

Republican committee members continued to urge a slow markup process while Democratic members requested that the committee move faster, noting that thousands of Americans continue to lose their health coverage.

With approximately 500 amendments proposed, the markup is expected to last well beyond Wednesday.