Senate health panel passes overhaul bill

The Senate health committee this morning passed its version of healthcare overhaul on a 13-10 party line vote, the first congressional panel to pass a healthcare bill this session.

The $600 billion measure would expand health coverage to nearly all Americans by requiring individuals to get insurance and employers to contribute to the cost. Senator Christopher Dodd of Connecticut, who is shepherding the bill in the absence of Senator Edward M. Kennedy, told reporters it is time to pass a comprehensive reform bill. Kennedy, who is battling brain cancer, missed the vote.

"We have done the hard work that the American people sent us here to do," Kennedy said in a statement. "We know, however, that our work is not over -- far from it. As we move from our committee room to the Senate floor, we must continue the search for solutions that unite us, so that the great promise of quality affordable health care for all can be fulfilled."

“For the past months, Rhode Islanders have told me that we need to fix health care in this country. I’ve heard from people struggling under skyrocketing costs and fearful that their coverage will disappear; people living with illness or injury because they can’t afford to see a doctor; people suffering from needless, preventable medical errors. All they’re asking for is health care they can rely on, and afford. As of today, we’re one step closer," Senator Sheldon Whitehouse, a Rhode Island Democrat on the committee, said in a statement.

“The reform bill we passed today will let you keep the health insurance you have, if you like it – and if you can’t afford your coverage or you’re uninsured, you’ll have new choices. Its emphasis on quality improvement, disease prevention, and a public insurance option will mean high-quality, efficient health care that invests not only in treating you when you’re sick, but in keeping you well. And never again will an insurance company be able to deny you coverage because of a pre-existing condition."

But Senator Judd Gregg, a New Hampshire Republican, told reporters that Democrats on the committee had "struck out" on healthcare by passing a bill that leaves millions of Americans uncovered and that could cost workers their jobs by burdening businesses.

He and other Republicans complained that the Democratic majority ignored their proposals and amendments.

On Tuesday, House leaders unveiled a $1.5 trillion healthcare bill that would raise taxes on the highest-income Americans and penalize businesses that don't offer coverage and individuals who don't get insurance.

The House bill calls for federal income surtax starting with individuals making more than $280,000 a year and rising to 5.4 percent on those making more than $1 million a year. Employers who don't provide coverage would be hit with a penalty equal to 8 percent of workers' wages, though small businesses would be exempt. Individuals who skip coverage would pay 2.5 percent of their incomes as a penalty, up to the average cost of a health insurance plan.

President Obama, who is ramping up his push to get a healthcare overhaul bill on his desk before the August congressional recess, has scheduled another speech on healthcare this afternoon in the Rose Garden.

Obama responded to the panel's passage with a statement praising elements that he supports, but as he did when House leaders unveiled their bill without fully endorsing it.

“Today, thanks to the unyielding passion and inspiration provided by Senator Edward Kennedy, the HELP committee he chairs has produced a proposal that will finally lower health care costs, provide better care for patients, and ensure fair treatment of consumers by the insurance industry," the president said.

"Like the legislation produced by the House of Representatives, this proposal would offer Americans quality, affordable health care that is there when they need it. No longer will insurance companies be able to deny coverage based on a pre-existing medical condition. No longer will Americans have to worry about their health insurance if they lose their job, change their job, or open a new business.

"This proposal will bring down costs, expand coverage, and increase choice. Through a health insurance exchange, families and small businesses will be able to compare prices and quality so that they can choose the health care plan that best suits their needs. Among the choices that would be available in the exchange would be a public health insurance option that would make health care affordable by increasing competition, providing more choices, and keeping the insurance companies honest.

"This proposal would also control rising costs by investing in preventive care and wellness programs, rooting out waste and fraud in the system, and changing the incentives that automatically equate the most expensive care with the best care.

"When this proposal is combined with other proposals that the Senate Finance Committee is working on, it’s estimated that health reform will cover 97% of all Americans.

"The HELP committee’s success should give us hope, but it should not give us pause. It should instead provide the urgency for both the House and Senate to finish their critical work on health reform before the August recess. I want to commend Senator Kennedy, Senator Dodd, as well as Senators Harkin, Mikulski, Bingaman, and Murray on the leadership they’ve shown and the foundation they’ve laid to reform our health care system.”