Health care bill passes Senate panel 14-9

Updated 1h 10m ago
By John Fritze, USA TODAY

WASHINGTON — A key Senate panel approved an $829 billion health care bill Tuesday, advancing President Obama's broad vision to reshape the insurance system further than any other such bill has in more than a generation.

The Senate Finance Committee, led by Sen. Max Baucus, D-Mont., voted 14-9 to approve the proposal, which would expand insurance coverage to 29 million uninsured Americans while reducing budget deficits by $81 billion over 10 years.


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Sen. Olympia Snowe, R-Maine, said before the vote that she would break with her own party and support the bill — a decision that could have wide implications as Democrats seek the 60 votes needed to clear the next hurdle: a vote by the full Senate.

"When history calls, history calls," said Snowe, adding that she may change her position depending on how the bill evolves. "I happen to think the consequences of inaction dictate the urgency of Congress."

Minutes after her announcement, Obama praised Snowe for her "extraordinary diligence" and lauded the entire finance committee for its "excellent work."

All other Republicans on the committee voted against the bill, which is the product of months of bipartisan talks. All Democrats supported the legislation, including Sen. Jay Rockefeller of West Virginia and Sen. Ron Wyden of Oregon who had not previously stated their support.

"Ours is a balanced package," Baucus said. "This is now the time to get this done."

Republicans, including Sen. Orrin Hatch of Utah, called the bill partisan, said it is heavy on new taxes and argued that it will not live up to a promise made by Obama that people who like the coverage they have can keep it. "This bill will allow you to do anything but keep your coverage," Hatch said.

Len Nichols, a health care economist with the New America Foundation, called the vote "historic," noting that President Bill Clinton's health care legislation never cleared the committee process in 1994.

The committee vote clears the way for debate by the full House and Senate. Before that, the proposal must be merged with a health care bill crafted by Democrats on the Senate Health, Education, Labor and Pensions Committee.

Any Senate bill will have to be reconciled with legislation in the House, where Democratic leaders are working to meld bills from three committees.

Sen. Tom Harkin, D-Iowa, chairman of the Senate health committee, predicted that Obama will have a health bill to sign by Christmas. "The momentum is such now that it's unstoppable," he said.

As he reconciles the differences in the Senate bills, Senate Majority Leader Harry Reid, D-Nev., will attempt to secure at least 60 votes for the merged bill to prevent a filibuster from blocking the measure on the Senate floor. One key difference in the bills: The finance legislation does not include a government-run insurance program. The health bill does, as does the House bill.

Other key differences:

•Health insurance mandates. Both Senate bills and the House require Americans to purchase health insurance, but fines for those who don't would kick in more quickly under the health panel's bill.

•Cost of premiums. Older people would pay more and younger Americans less under the finance bill compared with the other bills.

•Taxes. The Senate finance bill would impose a 40% excise tax on the portion of premiums above $8,000 for individuals and $21,000 for families. The Senate health committee bill does not address taxes, and the House bill does not include an excise tax. Instead, the House would impose a 1% income tax surcharge on families with incomes above $350,000 and individuals with incomes above $280,000.

The finance committee is the last of five in Congress to vote on health care legislation and its action could build momentum for Obama, said Mark Peterson, a public policy professor at the University of California-Los Angeles.

"It's an extraordinary signal," Peterson said. "I think that the dynamic to watch over the coming weeks is what the administration is able to do to now orchestrate the process."

Contributing: Kathy Kiely and David Jackson

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