
Ten Democratic Senators emerged tonight from a long series of meetings having reached a tentative agreement on a public option compromise. None would comment on the actual provisions in the deal, saying they first want to hear back from the Congressional Budget Office, which will begin scoring the new package tomorrow.
"We've made a lot of progress," said Sen. Tom Carper (D-DE). Now, he says, Democrats will "take the next step and ask the CBO to score what we've been discussing...we don't expect them to respond to us within 24 hours. Apparently it will take a couple days."
Within the past week, the 10 liberal and conservative Democrats hashing out a compromise have discussed a number of potential alternatives to the opt-out public option in the current bill, including tighter insurance reforms, an extension of the competitive market that insures Federal employees, and, most notably, a measure that would allow certain people between the ages of 55 and 64 to pay into Medicare.
However, none of the senators speaking to reporters tonight would confirm which, if any, of these items would be part of the package going to CBO.
Lawmakers have suggested in recent days that the compromises under discussion were meant to replace the national public option that's currently in the bill. The Associated Press as the New York Times are even reporting that the public option is gone. Tonight, though, Senate Majority Leader Harry Reid suggested that might not be the case. "All the things you've read in the newspapers...'the public option is gone,'--it's not true," Reid said at an impromptu press conference after tonight's meeting broke.
Reid wouldn't elaborate further--and it's worth noting that in recent days, aides and members have tried to characterize some of the ideas on the table as a form of "public option" when in fact none of them are. But it looks like we'll know definitively by the end of the week--and maybe sooner.
"I already know that all 60 senators in my caucus don't agree on every piece of the merger," Reid said. "I know that what we've sent over there to CBO--will send to them tomorrow--not everyone's going to agree on every piece that we've sent over there, but that doesn't mean that we disagree on what we've sent to them."
Emerging from the meeting, public option stalwart Sen. Jay Rockefeller (D-WV) told reporters, "You're going to find nobody who's happy with everything."
Late update: Details quickly flooded into TPM. Democrats have agreed, tentatively, to trade the opt-out public option for a system modeled on FEHBP, a triggered public option, and a Medicare buy in. Get the full rundown here.
Later Update: The White House team puts out a short, positive statement.
mcc
December 8, 2009 8:53 PM
So is it a "public option compromise", or is it a compromise where the public option is removed?
At this point their "compromise" amendment will need 60 votes to pass, right?
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ottis
December 8, 2009 8:58 PM
Looks like Lieberman is calling the shots. I suppose he will chair the the group that will combine the Senate and House bills.
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Liberal
December 8, 2009 9:55 PM in reply to ottis
I hope he isn't allowed to chair any committee. I can't stand that phony bastard.
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tpmgary
December 8, 2009 9:07 PM
Wasn't this a tentative agreement to drop the public option in favor of extending medicare to those 55-64, or an "opt-in" medicare provision for those between 55-64?
And does this mean that private insurance companies get to drop their most expensive customers (55-64) and replace them with a mandate of all younger, inexpensive customers?
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RKD2
December 9, 2009 1:22 AM in reply to tpmgary
I am not sure how the 55+ are the most expensive group. The risk pool is just different that is all. The premiums are calibrated based on the risk pool. If the Risk pool excludes 55+ people, the premiums would presumably be lower. Not necessarily lower, but the age group of the insured is not necessarily the element that determines the profit targets for the insurance companies. In fact, my thought is as follows: If the profit of the insurance company is a fixed percent of the "Revenues" (sum of all premiums), then the total profit for the insurance companies just went down. Just another way to look at it, that is all....
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tpmgary
December 9, 2009 12:10 PM in reply to RKD2
thanks for the response.
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ilovebacon
December 8, 2009 9:11 PM
I wish Schumer were majority leader. Reid's not a bad guy, but we need someone with some zest.
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EH
December 8, 2009 9:18 PM
Shorter Reid: "There was never going to be any public option, and I'm gonna soft-pedal it so you STFU."
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masanf
December 8, 2009 9:22 PM
"All the things you've read in the newspapers...'the public option is gone,'--it's not true"
I wonder if this mean that he has changed the definition of public option? In other words, is the new OMB plan what is being called a public option, thus allowing Reid to claim the public option is not gone?
OR
Is the actual public option still in the bill?
If it is the latter, how do you get past Lieberman and Nelson (especially after his amendment was defeated? It would seem the public option as everyone has come to understand would have to gone or, given Lieberman, these Senators just wasted a half a week negotiating for no reason.
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masanf
December 8, 2009 10:22 PM in reply to masanf
That should be OPM, not OBM in my above comment.
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cawleybo
December 9, 2009 6:42 AM in reply to masanf
Some form of something some people choose to call a public optio is still in the bill with a trigger.
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masanf
December 8, 2009 9:24 PM
Will the amendment to change the public option require sixty votes like every other amendment, or will Reid use the rules so that only a majority is needed?
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ilovebacon
December 8, 2009 9:32 PM
The question is, what is in its place. There are still some good alternatives--like buying into Medicare. But what is in it??
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NickBTW
December 8, 2009 9:34 PM
Hahahahaha! One can always count on Senate Dems to cheer one up.
Compromise (def): "Settlement of differences by arbitration or by consent reached by mutual concessions"
So, please enlighten me, what "concessions" have been obtained from conservative senator Dems, in return for dumping the public option?
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ilovebacon
December 8, 2009 9:34 PM
"Lieberman Open To Medicare Buy-In, So Long As Public Option Scrapped."
Is it 60?
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masanf
December 8, 2009 10:13 PM in reply to ilovebacon
Not if the public option isn't removed, which Reid is insisting now that it isn't. Unless of course Lieberman begins to hedge, which is what it seems Nelson is doing.
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Jake
December 8, 2009 9:34 PM
Marking this day on my calendar.
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jimbomoron
December 8, 2009 9:37 PM
Brian,
Of the ideas you listed, I think tighter rating rules -- the same as the House and of Massachusetts (2:1 on age and no smoker rating) is the best. People ages 55 to 64 probably would save more from the generational subsidy in a 2:1 age rating than from being in a pool of 55-64-year-olds with Medicare's bargaining power. Setting up another Exchange with higher standards, like an early Medicare buy-in, has the smell of adverse selection written all over it.
I think people underestimate how much risk selection affects the price of insurance. That absolutely has to be taken into account with these proposals.
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ilovebacon
December 8, 2009 9:41 PM in reply to jimbomoron
And single. I buy my own health insurance (I'm self-employed) and not only have to pay 800 bucks per month, but I am penalized for "not being part of a group." Seriously. Things that group holders of the EXACT plan get,I don't. And I got a letter from BCBS informing me that my rates will "only" increase 15% next year. Untenable!
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jollyroger
December 8, 2009 10:43 PM in reply to ilovebacon
Unless I am grossly off target, your personally paid, fully funded medicare buy in premium, for the whole package, would be right around ( but under )$400.00
How does that sound?
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artappraiser
December 8, 2009 11:11 PM in reply to jollyroger
Why do you think that?
They currently charge those over 65 who haven't paid enough taxes to get it for free, for Part A (hospitalization) alone is $443 a month and that's with a $1,000 deductible and hefty co-pays once you use a lot of days. Then the Part B (rest of medical services and supplies), everyone is charged about $100 a month for that right now, but that's highly subsidized and I am absolutely sure its cost will be more than that, and that has a 20% co-pay. Then there's the value of the Part D drug program, who knows what the heck premium value that has, I haven't had time to look.
Just looking at the Medicare website, where I got these figures, I figure the value is at minimum $700 a month for one person, probably more. With larger out of pocket than most insurance plans, which is why most seniors who can afford it have supplemental policies.
Yes, I know, it's an elderly group. But they aren't talking putting a lot of youngins in to balance that.
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artappraiser
December 8, 2009 11:21 PM in reply to artappraiser
To be clear on the subsidization matter, seniors paid a working lifetime of FICA taxes for that subsidization, hence the popular slogan among white panther types: "hands off my Medicare;" they feel they have already paid a lot of their premiums in advance. Whether that is reality is a whole 'nother matter....
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ilovebacon
December 9, 2009 10:43 AM in reply to artappraiser
It will be subsidized. In a way, expanding Medicare is much more progressive than individual state-controlled public options. It should also allow low-income people to buy in. If not, the reform package will not help the under-55.
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ilovebacon
December 9, 2009 10:43 AM in reply to jollyroger
I'd gladly pay 400 to buy into Medicare. As it stands now, my monthly individual premium will top 1,000 per month in two years. If nothing changes, I'll be forced to drop it, which is Russian roulette.
Question: Why not just expand Medicaid, rather than Medicare?
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artappraiser
December 10, 2009 5:11 AM in reply to jollyroger
Here's a $10,000 per year estimate per individual, or 800-$850 a month, see
Maggie Mahar @ Healthbeat.org, December 9, 2009:
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Progressive Mews
December 8, 2009 9:37 PM
This absolutely stinks like a trigger!
And of course, the parameters will be such that the trigger will never be pulled.
Meaning that my guess is EVERYBODY is right:
There IS a public option, with a look-only-don't touch trigger.
I say, "No Option? Then NO Mandate!"
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Ken Riley
December 8, 2009 9:41 PM
Here's what the Time's says:
If that's the deal, it's a big win for two reasons:
First, expanding Medicare eligibility would have been the right thing to do from the beginning and we can always chip away at the cut-off age (possibly even in reconciliation).
Second, the system that's already in place for federal government employees is pretty darn good--it's a very tightly regulated private solution.
What I'd like to see is language in the bill that makes the same requirements placed on policies offered to federal employees also be placed on policies offered in the exchange.
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ilovebacon
December 8, 2009 9:43 PM in reply to Ken Riley
Wow! Is it too early to feel optimistic?
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bluebell
December 8, 2009 9:52 PM in reply to Ken Riley
More likely they'll just screw the federal employees. That will let them score points as anti-labor centrists.
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nova voter
December 8, 2009 9:56 PM in reply to bluebell
not likely.
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rbeats
December 8, 2009 10:06 PM in reply to bluebell
Yeah right, whatever you take to create your reality I would like some of that shit.
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kash79
December 8, 2009 10:08 PM in reply to bluebell
You're always there to piss just coz you smell smoke.
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masanf
December 8, 2009 10:17 PM in reply to Ken Riley
From that same Time piece:
"The broader Senate Democratic caucus appeared to be in a state of confusion with even some senior party leaders saying they were unaware of any agreement."
Yeah, that really bodes well. That is some excellent leadership on Reid's part.
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EH
December 8, 2009 10:53 PM in reply to masanf
What do you mean? I'm sure that's the plan...if Congresspeople are confused then the constituents have absolutely no hope of having a voice in the process. That leaves the committee insiders and industry to write it up and get it signed. A win-win for those in power.
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couser
December 8, 2009 9:45 PM
Scrap the whole thing...the whole bunch of them have been bought off...if the Public Option isn't fully grown its half baked little bastard just causes more problems...there are no true solutions in any of this, everything is just being compromised by our elected simpletons.
What a bunch of crap.
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Why oh why
December 8, 2009 9:51 PM
Reid added: "Not yet".
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theone718
December 8, 2009 9:52 PM
It's the Medicare buy in, the FEBHP and a triggered Public Option. That's the jist of it methinks.
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nova voter
December 8, 2009 9:55 PM
if all of america in the shrinking gap between medicare and medicaid has access to the same thing that i get as a federal employee (FEHB), it's big. i get blue cross blue shield "basic" plan, which all my doctors are part of, for my family (me, wife, child) for around $45 every two weeks, give or take a few bucks. yes, my agency subsidizes my premiums, but i would think that most employers will continue to subsidize a part of their employees' premiums, just to stay competitive for employees. and if OMB is negotiating with an even bigger pool than it is now iwth just federal employees, premiums would be even lower, i would think.
pair that with restrictions on rescission and denial of coverage for preexisting conditions, and this could be decent.
i guess we wait and see.
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nova voter
December 8, 2009 9:58 PM in reply to nova voter
p.s. i also get some amount of dental (decent) and eye (basically crap) along with the health insurance (included in the $45). i wonder if that sort of stuff would be included. dental health is super important.
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masanf
December 8, 2009 10:18 PM in reply to nova voter
Not if it involves and expansion of Medicare it won't. I don't practice dentistry anymore, but when I was practicing, very few dental procedures were covered by Medicare. And when I say very few I mean next to none.
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masanf
December 8, 2009 10:19 PM in reply to masanf
That should read "an expansion of Medicare" not "and expansion".
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jollyroger
December 8, 2009 10:52 PM in reply to masanf
I would guess that the referenced premium is heavily subsidized, inasmuch as it appears to cover a whole family at around the actual subsidized medicare premium for an individual of about $95./mo.
What is the deal with dental coverage? I can speak with personal knowledge that a dental emergency is a really serious emergency....let alone the cardiac/teeth connection.
I mean, what, teeth aren't part of your body?
When chimps get culture, the first thing they do is teach each other to floss...Teeth are life and death for all other primates, and us for a good long time.(Hint--we don't have a damn thing going in the claw department)
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agio
December 9, 2009 8:13 AM in reply to nova voter
They won't get the same thing you do. It will just be called the same thing.
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