Did Public Option Pass?

The question of which half depends on your feelings toward an expansive health care reform bill known as H.R. 3962 that creates a government-administered medical insurance program — also know as the Public Option.

Health care legislation heading for the Senate floor will give millions of Americans the option of purchasing government-run insurance coverage, Majority Leader Harry Reid announced Monday, although he stopped short of claiming the 60 votes needed to pass a plan steeped in controversy. Reid, D-Nev., said individual states would have the choice of opting out of the program.

His announcement was cheered by liberal lawmakers, greeted less effusively by the White House and noted with a noncommittal response by Democratic moderates whose votes will be pivotal.

Sen. Olympia Snowe of Maine, the only Republican to vote with Democrats on health care so far this year, issued a statement saying she was “deeply disappointed” in the approach the Democratic leader had chosen.

Reid said, “While the public option is not a silver bullet, I believe it’s an important way to ensure competition and to level the playing field for patients with the insurance industry.” He said a long-delayed Senate debate on President Barack Obama’s call for an overhaul of the health care system would begin as soon as the Congressional Budget Office completes a mandatory assessment of the bill’s cost and impact on coverage.

Both the Senate and House versions of the proposed “public option” require that corporations with expertise in health insurance “administer” the “option.” This fact received no attention until October 24 when the Washington Post reported that the “option” would “likely” be run by insurance companies. Several bloggers attempted to assure readers that this news was nothing to be concerned about. They asserted that Medicare has always contracted with insurance companies to process claims, and then leaped to the conclusion that the role of insurance companies within the “option” will be no more significant than it is within Medicare.

The Natural State delivered a 50-50 split tonight among its U.S. Representatives.
U.S. Reps. Vic Snyder and Marion Berry, both Democrats, voted in favor of the measure. Berry’s fellow Blue Dog Coalition member, U.S. Rep Mike Ross voted no – a position he’s been signaling for weeks.

Northwest Arkansas’ own congressman, Republican John Boozman voted against the medical reform to little surprise. His office issued this statement after the vote:
“I am for health care reform, unfortunately, this bill does more harm than good. The American people deserve health care reform that gives them access to quality and affordable health care and allows them to make decisions that are best for the care they need. Instead of increasing taxes, entitlement programs and red tape to reform health care we need to let families and businesses buy health insurance across state lines; allow small businesses to pool together to buy health insurance at lower prices and end lawsuits that contribute to escalating costs because of doctors being forced to practice defensive medicine.”
There was no such split among Arkansas’ delegation on the so-called Stupak Amendment that barred insurance companies participating in the public exchange from paying for elective abortions. That amendment passed and all of Arkansas’ congressman said yes to the change.
The House finally passed the bill late tonight by 220 to 215.
Check a look at this snazzy map from The New York Times that shows how each district voted nationally.
The bill must now go through the U.S. Senate where it is expected to undergo significant compromise before possibly
landing on President Obama’s desk for a signature.
So what does the bill do exactly?
It creates a Health Insurance Exchange program to provide a side-by-side choice between private and public health insurance options.
It requires companies to pay at least 72 percent of the premiums for employee health coverage, or pay 8 percent of their payroll into the Exchange program. Small businesses are generally exempt from this.
Individuals must purchase insurance or pay about 2.5 percent of their income in penalties. Families that make up to 400 percent of the Federal Poverty Level will receive financial assistance to pay for their insurance.
It prevents insurers from excluding a person based on a pre-existing condition or dropping a customer because they are sick.
It limits out-of-pocket spending at about $5,000 per year for an individual and $10,000 for a family.
Individuals who earn more than $500,000 a year or families making $1 million or more annually will pay a new 5.4 percent tax on top of existing income taxes to finance the reforms.

As Democratic congressional leaders and White House officials work to shape health care bills that will go to the House and Senate floors, a new Washington Post-ABC News poll shows that support for a government-run health plan to compete with private insurers has rebounded from its summertime lows and now wins clear majority support from the public.

Americans remain sharply divided about both the overall health care package and President Obama’s leadership on the issue, reflecting the intense partisan battle that has raged for months over the administration’s top legislative priority. But majorities now back two key and controversial provisions: both the so-called public option and a new mandate requiring all Americans to carry health insurance.

Independents and senior citizens, two groups crucial to the debate, have warmed to the idea of a public insurance option, and are particularly supportive if it were administered by the states and limited to those without access to affordable private insurance, as stipulated in some versions of the legislation.