Senate Majority Leader, Harry Reid is set to release his compromise bill today, estimated to cost $849 Billion and reduce deficits by $127 Billion by 2019. The legislation would also expand health care access to 94% of the uninsured or roughly 31 million people. Reid's compromise bill appears to be a shift in the right direction, costing roughly 45 Billion less than the House Democrat bill and with only a 2% difference in expanded coverage for the uninsured. An article publish today in the Washington Post further states that,
"The cost of the package would be more than made up for by cuts in future Medicare spending and an array of new taxes, the aide said, reducing projected budget deficits by $127 billion no later than 2019 -- the biggest cost savings of any health care package so far assembled by congressional Democrats. The measure would also save the government money in the long term, the aide said, cutting projected deficits by as much as $650 billion between 2019 and 2029."
This is music to my fiscally conservative ears, with 16% of our GDP tied up in health care spending, deficit cuts like these are exactly what we need to get our health care system fiscally sound and sustainable for the long term.
Legislators expect to finance the bill through more than $400 billion in Medicare cuts, and potentially a small increase in the Medicare payroll tax for workers who earn more than $250,000 per year, as well as a new tax on high-cost insurance policies.
Another key element of the compromise bill is its approach to the controversial public option, which provides an option for consumers to purchase government-sold insurance and allows states to opt out of providing that option. Essentially, the bill would set up new insurance markets, called "exchanges" primarily for Americans who have a hard time obtaining and keeping coverage, with subsidies available to individuals who are unable to afford coverage.
I really think what is most interesting about this bill is the compromise on the public option. Does allowing states to opt out make it more appealing? I'd love to hear some of your thoughts so post your comments by registering or logging in.
Looking for a copy of the full senate bill online? You can read the full text of the Senate HELP Committee Bill here, and the Senate Finance Bill here.
