HEALTHCARE: New Plan to be Introduced by Sen. Baucus

Ahead of President Obama’s speech to a joint-session of Congress tomorrow night, the Chairman of the Senate Finance Committee, Sen. Max Baucus (D-MT) is set to introduce a new plan for healthcare reform. This plan has some hope of being bipartisan, as Sen. Baucus is working in what has become known as the “Gang of Six” within the Finance Committe. This new plan has some improvment for those who have been opposed to other recent legislation (HR 3200 for one) that included a “public option” or government facilitated health insurance. However, there is one portion that might not go over so well for some of the American people, a hefty fine for not purchasing  health insurance. Here is an article from FOXNews.com:

Families who fail to get health insurance could be fined up to $3,800 under a health care reform plan proposed by a top Senate negotiator.

Sen. Max Baucus, D-Mont., who as chairman of the Senate Finance Committee is leading talks among the “Gang of Six” senators to hammer out a bipartisan compromise, offered what he described on Tuesday as a “framework” and not a “final product.”

But the detailed proposal comes just days ahead of a self-imposed Sept. 15 deadline for such a deal. Baucus is pushing his committee members hard to hammer out a bill, and those details come as strong suggestions.

The framework, a copy of which was obtained by FOX News, includes what amounts to a no-choice option. It would make health insurance mandatory, like auto insurance.

The plan would provide tax credits to help cover the cost for people making up to three times the federal poverty level. That’s about $66,000 for a family of four, and $32,000 for an individual.

Those who still don’t sign up would face hefty fines, starting at $750 a year for individuals and $1,500 for families — for those making up to three times the poverty level.

For those who make more than that, the penalty on individuals would jump to $950 and the penalty on families would jump to $3,800.

There would be a few exemptions, including for Native Americans and for those making incomes below the federal poverty level.

The plan does not include a government-run health insurance plan to soften the blow of the coverage mandate.

Instead, Baucus opts for a system of non-profit cooperatives, as part of a broader health insurance exchange.

As a way to pay for the package, Baucus is proposing a 35 percent excise tax on insurance companies for high-cost plans — defined as those above $8,000 for individuals and $21,000 for family plans.

The Senate Finance Committee is meeting Tuesday, as President Obama prepares to deliver a high-stakes speech to both chambers of Congress Wednesday night in a bid to invigorate the push for reform.

Four committees have already passed their bills; Baucus’ panel is the only one yet to act. His committee’s bill is also the only one that could be considered bipartisan.

Baucus hits major elements in his plan that other top Democrats say are important. His plan would require health insurance plans to guarantee coverage and would prohibit them from excluding coverage based on pre-existing conditions.

Premiums would be allowed to vary based only on tobacco use, age and size of family.

While this is a step forward, and it is good that it no longer contains the “public option” these hefty fines for non-compliance are still worrysome. Depending on how well these non-profit insurance agencies work to making coverage more affordable this still might hurt those who are not poor, and yet still can not afford coverage. This would add insult to injury, not only do you not have coverage or can’t afford it, but then you would need to pay a federal fine for not being able to afford it…and would you be able to afford that fine? Make no mistake, this is a step in the right direction, however there needs to be an inclusion of a provision that allows insurers to compete over state lines, and to lower the number of frivolous lawsuits against doctors. While some suits are legitimate and have merit, not all of them do and are done as a “get rich quick” opportunity. However, we have heard from Howard Dean that Democrats are unwilling to take on tort reform, because they are unwilling or afraid to also take on trial lawyers (major Democratic supporters) as well as conservatives, and the American people. It is time for statesmen and leadership, and not a time to be afraid to take on certain interest groups. Our leaders need to work together to take on whoever needs to be taken on to work out a legitmate and functional reform of healthcare. We have a long way to go until something is workable, but we can’t have Democrats threatening a nuclear option, or go-it alone strategy. While they would have the “success” of healthcare reform, they would have the sour taste of forcing it down the people’s throats. That would not bode well for them as we head into the 2010 elections. If they can become statesmen, and step above the partisan fray, they might have a chance at redeeming themselves in the eyes of the American voters.