CQ's Armstrong Discusses Budget Reconciliation, Coverage Proposal From Private Insurers, Sebelius Confirmation

Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 31 Mar 2009 - 5:00 PDT

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Drew Armstrong, a Congressional Quarterly staff reporter, discusses efforts to use budget reconciliation to fast-track health reform, a compromise offered by private health insurers and the scheduled confirmation hearing for Kansas Gov. Kathleen Sebelius (D), President Obama's nominee for HHS secretary, in this week's "Health on the Hill from kaisernetwork.org and CQ."

Armstrong says the idea of Congress using the budget reconciliation process to advance health care reform and avoid a potential filibuster in the Senate carries some "danger." He says that Democrats might "write a health care bill that trends too far to the left," which "could unite the health care industry against the bill." If the industry, as a result, launches an advertising campaign against reform legislation and undermines public support, "it could spell trouble for Democrats," according to Armstrong. In addition, Armstrong says the "compromise frame work on health care" developed by a coalition of 18 organizations and given to Congress only has "some general principles like expanding government programs including Medicaid and [CHIP], giving people subsidies to buy insurance and increasing preventive care." He says it "doesn't tackle any of the big issues on a health overhaul."

Armstrong also discusses a recent offer from America's Health Insurance Plans and the BlueCross BlueShield Association to stop charging higher premiums to people based on their health status in exchange for a government requirement that all people obtain health coverage. He says the reaction of Congress to the compromise has been "[v]ery positive." According to Armstrong, "[I]t seems lawmakers are glad to see the insurance industry at the table and making concessions." He also discusses potential cuts to Medicare Advantage plans, saying opposition to the plan "isn't new, but it's a signal that the insurers might oppose a health care bill that cut their payments, even though it seems almost certain that any Democratic legislation would."

Finally, Armstrong says that the confirmation of Sebelius is "on track." According to Armstrong, the Senate Health, Education, Labor and Pensions Committee on March 31 will consider her nomination, while the Senate Finance Committee will consider it on April 2. The Finance Committee has jurisdiction over her nomination, so it will vote before the nomination moves to the full Senate for a final vote. Senate Finance Committee ranking member Chuck Grassley (R-Iowa) said the full Senate vote could come as early as this week. Armstrong says the nomination "should go smoothly." He says the scheduling of the hearings is "a good sign" because it "typically means the committee has finished the vetting process." According to Armstrong, Sebelius would need to pick her team of deputies and other key staffers not yet in place after being confirmed (Armstrong, "Health on the Hill from kaisernetwork.org and CQ," 3/30).

The complete audio version of "Health on the Hill," transcript and resources for further research are available online at kaisernetwork.org.

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation.

© 2009 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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