House lawmakers made good on their promise
to pass a sweeping overhaul of the nation's health insurance system,
approving the Affordable Health Care for America Act (HR 3962) by a vote
of 220 to 215. The historical vote came late on November 8, after
lawmakers from both parties spent the day debating the merits of the
legislation, including whether funding for abortion should be paid for
by federal dollars.
Democratic lawmakers said the measure,
which will provide insurance for 96 percent of Americans, is the single
most important step in 100 years to address the health care needs of
American families. "This bill will at long last reform the health
care system by expanding choices, reducing costs, and providing people
with peace of mind about their health insurance," said Rep. Henry
Waxman, D-Calif., who chairs the House Energy and Commerce Committee.
The bill was a merger of work produced by his committee and the House
Ways and Means and House Education and Labor committees.
GOP lawmakers characterized the legislation
as a job-killing, big government takeover of the health care system that
would disrupt the free market and interfere with doctor/patient
relationships. "Taken in full, this government takeover of health
care will increase federal health care spending, pile more debt onto the
backs of our children, and hurt our economy with job-killing tax
increases," said Rep. Tom Price, R-Ga., chairman of the
conservative House Republican Study Committee. "But most
disturbingly, it will place Americans' personal medical decisions in the
hands of faceless bureaucrats in Washington."
The White House issued a statement of
administrative policy on November 6 offering strong support for the
legislation, noting that the public option for insurance included in the
bill will ensure that Americans benefit from choice and competition in
the market. "HR 3962 will provide needed insurance reforms for
Americans with insurance, expand coverage for those who do not have
insurance, lower costs for families and businesses, and begin to reduce
the Nation's deficit," according to the administration statement.
The Congressional Budget Office and the Joint Committee on Taxation
estimate that the health care bill would cut the federal budget deficit
by $109 billion over the 2010 --2019 period. The JCT estimated a net
cost of $891 billion over 10 years for the health reform legislation.
To offset that cost, Democrat lawmakers
relied on a combination of cuts in Medicare spending and increases in
federal taxes. The biggest revenue raisers in the legislation are a 5.4
percent surtax on individuals with adjusted gross income (AGI) in excess
of $500,000 and for families, with AGI in excess of $1 million. That
provision would raise $460 billion. Another $20 billion would come from
a 2.5 percent excise tax on the sale of medical devices, approximately
$17 billion would come from changes to information reporting
requirements for corporations, $6 billion from repealing worldwide
interest allocation rules, and $23 billion from changes to a biofuel tax
credit used by paper manufacturers.
Reaction from Senate Republicans was swift
and negative. Speaking on "CBS News' Face the Nation "program
on November 8, Sen. Lindsey Graham, R-S.C., said "the House bill is
dead on arrival in the Senate. Just look at how it passed." He
noted that 39 Democrats from swing states voted against the bill, which
only received two more than the 218 needed for passage. "It was a
bill written by liberals for liberals. And people like (Sen.) Joe
Lieberman, (I-Conn.), are not going to get anywhere near the House
bill," Graham predicted. "It cuts Medicare about $500 billion
dollars. It's over a trillion dollars in new spending. It does have the
public option. So the House bill is a non-starter in the Senate."
