Kennedy panel introduces health bill

After a year of deliberation, the Senate health committee led by Edward M. Kennedy of Massachusetts today formally unveiled its healthcare overhaul bill.

But it's only one of several competing bills that Congress and President Obama will eventually try to reconcile. House Democratic leaders today offered their own proposal that includes a new tax on employer-provided health benefits to help pay for expanding coverage to the uninsured, and a requirement for all individuals to purchase affordable coverage, with an unspecified penalty for those who refuse and a waiver for those who cannot cover the cost.

And the Kennedy panel bill -- the "Affordable Health Choice Act" -- does not for now include one of the most controversial proposals that the committee's Democrats and Republicans are still haggling over -- a public insurance plan that would directly compete with private insurers.

The Kennedy bill also leaves out, pending further negotiation with Republicans, a requirement that employers provide health benefits to workers.

The legislation would require all individuals to have health insurance, ban insurers from refusing to cover pre-existing conditions, and establish online "exchanges" where the uninsured and employees of small companies could shop for affordable insurance.

“Our health care system is a crisis for American families and President Obama and members of Congress of both parties recognize the urgency of the problem. Our goal is to strengthen what works and fix what doesn’t. Over the next few days, we will continue working with our Republican colleagues on common sense solutions that reduce skyrocketing health care costs, assure quality care for all and provide affordable health insurance choices. Much work remains, and the coming days and weeks won’t be easy. But we have a unique opportunity to give the American people, at long last, the health care they need and deserve,” Kennedy said in a statement.

The committee plans a public hearing on the bill on Thursday. To read it, click here. A summary is below.

During Kennedy's battle with brain cancer, Senator Chris Dodd of Connecticut has been deputized to push the legislation. He announced today that Kennedy, who is undergoing treatment, would be unable to attend the committee's working sessions on the bill next week.

“Health care reform cannot and must not wait. Today, we will introduce legislation that will strengthen what works and fix what doesn’t. If you like the insurance you have today, you can keep it. If you don’t like what you have today, we’ll give you better choices, including a public option for health care. This does not symbolize the end of the game or even the end of the first quarter. We still have a lot of work ahead of us and are looking forward to working with our colleagues on a bipartisan basis to resolve the remaining issues and move forward with a mark-up of this legislation next week,” Dodd said in a statement.

The House efforts are being led by three powerful Democrats: Ways and Means Committee Chairman Charles B. Rangel of New York, Energy and Commerce Committee Chairman Henry Waxman of California, and Education and Labor Committee Chairman George Miller of California. To see an outline of their legislation, click here.

“Our Committees are working as one to develop a uniquely-American solution to the health care crisis that is endangering the financial security of individuals and businesses," they said in a joint statement. "This solution will fulfill President Obama's commitment to provide quality, affordable health care for all. This framework will build upon what works by ensuring that patients can keep their health coverage if they like it, preserve patients’ choice and reduce costs. We will also fix what is broken through marketplace reforms, sliding scale credits to make coverage more affordable, and provisions to combat waste, fraud and abuse, strengthen Medicare and Medicaid, and invest in the health care workforce and public health. By improving the current system and offering a public health insurance option to promote honest competition with private insurance plans, we will provide individuals and small businesses with better, more affordable choices.

“We will continue to seek input and work closely with our colleagues, outside stakeholders, and the Administration and are on track to introduce legislation shortly. We anticipate Committee action on health reform in the coming weeks, with legislation on the House Floor prior to the August district work period. Reforming America’s health care system is critical to our country’s long-term economic recovery and long-term fiscal health. We are confident that we will achieve reform that will give Americans peace of mind and return our great nation to a path of prosperity for generations to come.”

Obama met this afternoon with Democrats on the Ways and Means Committee about the healthcare bill. Afterwards, the White House released this statement:

"The President had a productive meeting with Democrats from the House Ways and Means Committee, in which they agreed that health reform legislation must lower costs and expand coverage and must not add to the deficit. The President told the members that he will be spelling out additional savings for Medicare and Medicaid soon. He reiterated his support for his revenue-raising proposal, which would return the itemized deduction rate for the wealthiest Americans back to what it was when Ronald Reagan was President. The President and the members discussed some of the important components of reforming America’s health care system, such as emphasizing primary care, prevention and wellness. They agreed to aim for a timetable in which final passage of the bill would take place in October."