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Obama Health Reform Proposal Follows Senate Bill, with Changes | GovWatch | Advocacy | NAIFA
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NAIFA GovWatch

Obama Health Reform Proposal Follows Senate Bill, with Changes

Issue: Health Care

Date: February 22, 2010

Action Taken: President Obama released a new health reform plan on February 22. Generally, it follows the Senate health reform bill (H.R.3590), but makes some important changes (some of which reflect House-Senate negotiations and House priorities). The plan will serve as the starting point for the summit the President has convened with 37 members of Congress (Democrats and Republicans, House and Senate) on February 25.

The plan, like its base (H.R.3590), includes an individual mandate (i.e., individuals will be required to buy health insurance); sets up state-based exchanges (starting in 2014) from which very small businesses and individuals can buy insurance; creates a package of insurance reforms (e.g., bans use of preexisting conditions, rescissions, use of health history, etc; prohibits annual and lifetime benefit limits; and bans discrimination in favor of highly compensated employees); and sets up “employer shared responsibility” that stops short of requiring employers to offer and pay for health insurance for their workers, but does require employers who don’t offer insurance (or affordable insurance) to pay an assessment when any of their workers use federal subsidies to buy health insurance on their own.

The new Obama plan does not include:

It also does not expand the limited interstate insurance buying provisions, or offer anything new in the tort reform area.

A summary of the new Obama plan can be found here.

The entire 11-page proposal can be found online here.

NAIFA Position: NAIFA’s reform goals have been and continue to be ensuring affordable coverage for all Americans without resorting to new government programs. The President’s proposal, like the Senate-passed bill, has been significantly improved over original reform drafts. NAIFA remains concerned that current proposals will increase costs to families and businesses.

Next Steps: The President will convene a televised bipartisan health reform summit on February 25th aimed at reinvigorating the delayed process. Still under consideration is a strategy involving the Senate consideration of a reconciliation bill (requiring only 51 votes for approval) that would make agreed changes to the previously-approved Senate bill. Following the Senate approval of this reconciliation bill, the House would approve the original Senate bill and the subsequent reconciliation bill. The President would then sign the original Senate bill and the reconciliation bill.

It remains unclear if the President’s proposal released today, the televised summit on Thursday, and the complicated reconciliation process will change the current environment and garner enough votes to allow health legislation to move forward.

NAIFA will remain actively engaged and will attempt to further improve legislation to meet our reform goals, including efforts to ensure a government health plan is not included; to remove the government long-term care program; to establish adequate time for coordination with existing state programs and to further address affordability and sustainability of private insurance choices.

NAIFA Staff Contact:  Diane Boyle, Vice President – Federal Government Relations.

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