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Health care reform

Senate Democrats Weigh Options on Medicare Buy-In and Public Option

Strategic Insights

— 2 min read

Senate Democrats are weighing options on the Medicare buy-in and public option, with a growing likelihood that the Medicare buy-in will be dropped as part of a compromise on a public option. Senate Finance Chairman Max Baucus and Senate Health, Education, Labor and Pensions Chairman Tom Harkin said that the buy-in appeared close to being abandoned after Sen. Joseph Lieberman said he would not vote for cloture on the bill if it included the buy-in. Lieberman believes that individuals between 55 and 64 years old are better off receiving subsidies and buying insurance on the exchange, citing that the buy-in would have been more expensive than the subsidies.

Key Takeaways:

  • The Medicare buy-in is likely to be dropped as part of a compromise on a public option, with Sen. Joseph Lieberman's opposition being a major factor.
  • Sen. Lieberman believes that individuals between 55 and 64 years old are better off receiving subsidies and buying insurance on the exchange.
  • Sen. Max Baucus and Sen. Tom Harkin expressed support for a public option, but indicated that the buy-in was unlikely to make it into the final bill.
  • Democratic leaders have estimated that the Senate would need six to nine days for three cloture votes and a vote on final passage, and are likely to file cloture this week if the CBO returns a score today.
  • The Senate will take its first votes on health care this week, with four amendments pending, including one that would allow the reimportation of prescription drugs.
  • Democratic leaders have pledged to close the doughnut hole, but have not specified how they would do so as the overhaul moves to conference with the House.

Statistics:

  • The Senate is expected to need six to nine days for three cloture votes and a vote on final passage.
  • The CBO is expected to return a score on a proposal to have the federal government negotiate insurance rates with providers on behalf of a national plan today.
  • The Pharmaceutical Research and Manufacturers of America has pledged $80 billion to help fund the overhaul.
  • The Senate has been working on the health care overhaul for a number of weeks, with some senators estimating that it will take as long as six to nine days for final passage.

Sources:

  • Senate Democrats in a meeting on Monday evening, as reported by CongressDaily
  • Sen. Joseph Lieberman in an interview on Monday, as reported by CongressDaily
  • Sen. Max Baucus and Sen. Tom Harkin in a meeting on Monday, as reported by CongressDaily
  • The Congressional Budget Office (CBO)
  • The Pharmaceutical Research and Manufacturers of America (PhRMA)
  • The American Association of Retired Persons (AARP)
  • Sen. Robert Casey Jr. in an interview on Monday, as reported by CongressDaily
  • Sen. Ben Nelson in an interview on Monday, as reported by CongressDaily

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