This is going to make some Republican (and conservadem) heads explode:
WASHINGTON — Democrats on a key Senate Committee outlined a revised and far less costly health care plan Wednesday night that includes a government-run insurance option and an annual fee on employers who do not offer coverage to their workers.
The plan carries a 10-year price tag of slightly over $600 billion, and would lead toward an estimated 97 percent of all Americans having coverage, according to the Congressional Budget Office, Sens. Edward M. Kennedy and Chris Dodd said in a letter to other members of the Senate Health, Education, Labor and Pensions Committee. The AP obtained a copy.
The key thing to remember is that last time around, we were looking at a $1 trillion price tag over 10 years -- and millions without coverage.
This time we're looking at $600 billion over 10 years and 97% coverage.
What changed?
Two things. First, now the plan includes a public option, which is a far more cost effective way of expanding coverage than only subsidizing private insurance. Second, it contains a funding mechanism requiring employers who do not provide health insurance to pay an annual fee for each uncovered employee. Small businesses would be exempt from this fee.
Politically, this puts Republicans and Democratic opponents of the public option in a terrible position. They can't argue that the public option is too expensive. And they can't argue that it won't lower costs and expand coverage.
The only argument they have left is that private insurers won't be happy with the public option. To the extent that argument sways opinion, it will sway opinion in our direction.
::
Update (8:20AM) -- President Obama's comments on the new HELP legislation:
Statement by the President on Health Care Reform Bill Released by Senate HELP Committee Today
For decades, Washington has failed to act as health care costs continued to rise, crushing businesses, families and placing an unsustainable burden on governments. Today the Senate HELP committee has produced legislation that lowers costs, protects choice of doctors and plans and assures quality and affordable health care for Americans. The Congressional Budget Office has now issued a more complete review of this bill, concluding that it will cost less and cover more Americans than originally estimated. It also contains provisions that will protect the coverage Americans get at work. When merged with the Senate Finance Committee’s companion pieces, the Senate will be prepared to vote for health reform legislation that does not add to the deficit, reduces health care costs and covers 97% of Americans.
The HELP Committee legislation reflects many of the principles I’ve laid out, such as reforms that will prohibit insurance companies from refusing coverage for people with pre-existing conditions and the concept of insurance exchanges where individuals can find affordable coverage if they lose their jobs, move or get sick. Such a marketplace would allow families and some small businesses the benefit of one-stop-shopping for their health care coverage and enable them to compare price and quality and pick the plan that best suits their needs.
Among the choices that would be available in the exchange would be a public health insurance option. The public option would make health care affordable by increasing competition, providing more choices and keeping the insurance companies honest.
The legislation also improves the quality of patient care, improves safety for patients and strengthens the commitment to preventive health care – preventing people from getting sick in the first place.
I thank chairman Kennedy, Senator Dodd, and all the members of the HELP Committee for their hard work on health reform.