As Congress returned to session this past week, health reform once again took center stage. President Barack Obama on Wednesday night outlined the components of his envisioned reforms in a joint session of Congress. Promising that he would not sign a bill that was not deficit neutral, the President called for a bill that would include a number of well-discussed insurance underwriting and rating reform including proposals to prevent insurers from dropping and limiting coverage, limiting factors that could be used to set premiums and the creation of an Exchange pooling mechanism. He also indicated his support for both an individual and employer mandates, i.e. requirements that individuals be required to carry basic insurance and businesses would be required to offer it. While he expressed his support for the so-called 'public option', his remarks did signal a willingness to reconsider that specific proposal if alternatives could be found to achieve the goal of increasing much-needed competition in insurance markets. Among the new ideas mentioned was a new proposal to begin demonstration projects designed to reduce medical malpractice lawsuits. The president did indicate that his package would cost $900 billion over 10 years and should be paid for with savings from the health sector. He further noted that he supports a provision that "requires us to come forward with more spending cuts if the savings we promised don't materialize."
Prior to the President's speech, chairman of the Senate Finance Committee, Senator Max Baucus (D-MT), also announced the components of his proposed legislation and promised to begin committee consideration of a bill the week of September 21, 2009. The announcement came as efforts by a bipartisan group of six Finance Committee members seemed to have become stymied over the August recess in their efforts to develop a bipartisan committee bill. The Chairman indicated that he was open to further suggestions from Senators but reiterated his intent to move forward with Committee consideration this month.
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