This Week in Health Reform

In this article, provided by Anthem Blue Cross, gives an overview of healthcare debate in Washington. It seems that the President is still trying to jam socialized medicine down our throats. Another interesting fact, is that the huge profits that the carriers are suppose be getting is only 3 cents on the dollar.

As Congress returned to Washington after the Fourth of July Recess, the aggressive timetable set to pass bipartisan legislation by the end of the summer suffered a setback on Wednesday as key senators expressed doubt as to whether they could hammer out legislation in this short amount of time. The White House continues to push Congress to stick to its timetable.

While Congress considers health care reform options and how to pay for them, it's important to keep in mind that insurer profits - typically blamed for rising health care costs - in fact have little impact on health care premiums. According to PricewaterhouseCoopers research from 2008, only three cents of every health care premium dollar is spent on health insurer profit.

Public Plan

Obama Reaffirms Support for Public Option: Backing away from earlier comments made by White House Chief of Staff Rahm Emanuel indicating the government would be open to a health reform plan that did not include a public option, President Barack Obama reaffirmed his support for a government-run plan in a statement released this week while traveling in Russia.

HELP Price Tag Drops: Sens. Ted Kennedy (D-MA) and Christopher Dodd (D-CT), who are leading the Senate Health, Education, Labor and Pensions Committee (HELP), said Thursday that they had whittled down the cost of their health reform plan to $611 billion over 10 years. Debate during Wednesday's mark-up session raised questions about the overall cost, however, and suggested that when Medicaid expansions are factored in, the cost could exceed the $1 trillion mark.

The HELP committee is relying on the Finance Committee's plan to account for the additional 34 million Americans that would not be covered under the HELP proposal, including plans to expand Medicare.

Financing the Plan

Taxing Health Benefits Loses Steam: In a move indicating a rejection of bipartisan compromise Tuesday, Sen. Harry Reid (D-NV) sent word to Sen. Max Baucus (D-MT) that he should drop the concept of taxing employer-provided health care benefits, a move that would require the Senate Finance Committee to consider additional payment cuts or tax increases to offset more than $300 billion as a result.

Hospital Industry Agreement: Vice President Joe Biden formally announced Wednesday that the hospital industry agreed to contribute $155 billion over 10 years toward the cost of insuring uninsured Americans.

House Side Activity: House Democrats continue to develop their health reform proposal and are expected to release their plan to pay for health care reform by the end of this week. Democrats are focused on an income tax increase for the highest earners and are close to ruling out a proposed "sin tax" tax on sodas and other sugary drinks.

Looking Ahead

The Senate HELP committee hopes to complete its markup by late this week or early next. The Senate Finance Committee is still negotiating its bill and continues to mull options on how to pay for the overhaul. The House may begin marking up legislation in Committee next week.

For up to the moment information on Health Care Reform, please visit the Health Action Network.