Capitol Hill Reports - House Leaders Tee Up Health Care Reform Legislation, as Senate Moves Forward on Unemployment Bill

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House Leaders Tee Up Health Care Reform Legislation, as Senate Moves Forward on Unemployment Bill
Sunday, November 1, 2009
8:30 PM

House Democratic leaders this week plan to bring to the floor the long-awaited health care overhaul legislation being dubbed the Affordable Health Care for America Act (H.R. 3962). Unveiled last week, H.R. 3962 would require most American citizens and legal immigrants living in the U.S. to obtain health insurance starting in 2013, or face a financial penalty. The bill also would provide subsidies to low-income individuals and families through insurance "exchanges" to substantially reduce the cost of purchasing coverage.

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These insurance exchanges would include private insurance plans as well as the so-called "public option" that would be run by the Department of Health and Human Services. In addition, H.R. 3962 would significantly expand eligibility for Medicaid.

Implementing the proposed expansions in health care coverage would cost the federal government a net $894 billion over ten years, according to a preliminary analysis by the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT). CBO and JCT are the official scorekeepers of spending and tax legislation, respectively. However, the overall bill would result in a net reduction of $104 billion in cumulative budget deficits over the ten-year window due to offsets stemming primarily from a 5.4 percent income tax "surcharge" on individuals earning $500,000 or more a year, and modifying payment rates for Medicare and Medicaid.

"In the subsequent decade, the collective effect of its provisions would probably be slight reductions in federal budget deficits," states the initial CBO/JCT score on H.R. 3962. "Those estimates are all subject to substantial uncertainty."

House Democrats hailed the bill as an historic step towards universal health care coverage, while Republicans blasted the proposal, arguing that it would result in a government takeover of health care and raise insurance costs for most Americans.

The following links provide additional details of H.R. 3962: Summary; Detailed Summary; Section-by-Section; Bill Text; Changes from Introduced Version; Implementation Timeline; CBO Score; JCT Score.

Across the Capitol, the Senate this week will move closer to a final vote on the Unemployment Compensation Extension Act (H.R. 3548). After voting last week to proceed to consideration of H.R. 3548, the Senate on Monday will vote on whether to proceed to a substitute amendment that would provide 14 additional weeks of benefits for all 50 states and another six weeks -- for a total of 20 weeks -- of benefits for states where unemployment is 8.5 percent or more. As passed by the House, H.R. 3548 would provide a 13-week extension for only 27 states that are experiencing unemployment rates at or above 8.5 percent.

A dispute over amendments has delayed final passage of the legislation in the Senate, although the bill is expected to receive wide bipartisan support when it arrives at a final vote. Last Thursday, Majority Leader Harry Reid (D-NV) used a procedural tactic called "filling the amendment tree" to prevent Republicans from offering first degree amendments to the substitute bill. GOP senators are looking to attach an extension and expansion of the homebuyer tax credit to H.R. 3548, among other proposals.

A final vote on H.R. 3548 could occur by week's end. Following Senate passage of its version of the legislation, the House could agree to the Senate's changes and subsequently send the bill to President Obama's desk. Otherwise, the two chambers would have to negotiate a final version.