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Gang Of One: Baucus Reminds Everyone Who's Boss With Health Bill Push

This article was originally published in The Pink Sheet Daily

Executive Summary

Senate Finance Committee chairman says legislation will be marked up the week of Sept. 21, reiterates the "door is open" for Republican support.

There may be a "Gang of Six" on the Senate Finance Committee but Sen. Max Baucus is reminding bipartisan health reform negotiators there is only one chairman.

The Montana Democrat publicly reasserted his leadership of the committee by announcing he will go forward with introducing legislation - in the form of a "Chairman's Mark" -the week of Sep. 14; the committee will proceed to marking up the legislation the week of Sep. 21.

"I very much hope and expect there will be some Republicans" who support the Finance Committee health reform bill, Baucus told reporters Sept. 9. "My door is open, but irrespective of whether or not there are any Republicans, I'm going to move forward anyway."

Baucus' public statement that he will introduce a bill, with or without Republicans, is significant for a number of reasons.

First, for Democrats, it almost certainly means all five committees with health reform jurisdiction in both chambers of Congress will clear a major health reform bill that impacts every facet of the U.S. health care system.

That in itself is a major political victory for the Obama Administration that could not be said for the Clinton Administration's health reform effort.

Second, Baucus' vow indicates he is willing to sacrifice bipartisanship and his standing with Republicans in order to pass the Democratic Party's top policy priority this year. During the Clinton-era health reform push, the Montanan was criticized by some reform advocates for caving in too early to employers over a mandate that they provide insurance to employees. Some Democrats have worried about a repeat.

Third, the hard deadline signals to Republicans that now is the time to reach a deal to include certain desired provisions in exchange for their vote.

"I know in almost all negotiations, you have to wait for the last instant before things begin to break favorably," Baucus said. "I know that several of our Republican colleagues very much want to be a part of this. They know and I know there is still time between now and when we vote on the final bill that's marked up in a couple of weeks."

He added: "There's quite a bit of time left for bipartisan support. I expect to find some number of Republicans to be on the mark."

For drug manufacturers, Baucus' framework for health reform may represent a best case scenario of all the legislative options on the table, though it adds a new $2.3 billion annual excise fee on pharma (Also see "Obama's Forthcoming Health Reform Speech Prompts Sen. Baucus To Cooperate" - Pink Sheet, 8 Sep, 2009.).

One proposal that will not be included in the Finance Committee bill is the public insurance option in a national health insurance exchange.

"I am not about to put in provisions that are so problematic that we cannot pass them in the full Finance Committee and the Senate," Baucus said. "I think, frankly, with increasing conviction that a public option can not pass the Senate. I could be wrong but it is my belief that a public option can not pass."

Instead, the Finance Committee proposal includes non-profit insurance cooperatives. "I think that is close to a measure that will pass both the committee and the Senate."

Baucus also played down the possibility of a "trigger" for the creation of a public option. "I read a lot about the trigger in the media, I don't hear much about the trigger in these discussions. The trigger has not come up in discussions either with the Group of Six or my Democratic colleagues."

"Questions Around The Edges" - But No "Showstoppers"

With the co-ops provision in the Finance Committee proposal, Baucus affirmed that there are no major hurdles in the way of health reform, just details. "The questions are most around the edges. There's no showstopper, there's no big policy change - just concerns. We haven't met since the August recess."

Baucus' remarks came in advance of President Obama's prime-time speech on health reform before a joint session of Congress. Democrats on Capitol Hill are eager for Obama to provide a deadline for a bill to be on his desk, while Republicans want Obama to ask Congress to start over.

"I want the president to say in no uncertain terms, I want a bill on my desk by Thanksgiving," said new Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin, D-Iowa.

But the Senate and House Minority Leaders Mitch McConnell, R-Ken., and John Boehner, R-Ohio, respectively, held a press conference in which both urged Obama to "press the reset button" on health reform. "It's time to stop where we are and start over," said Boehner.

The two contradictory remarks underscore the deep partisanship hanging over Congress on the health care issue.

"The only thing we know so far about the Democratic plans that we've seen is that they're bipartisan only in their opposition," said McConnell. "In fact, the only thing about the debate so far has been bipartisan opposition."

Senate Majority Leader Harry Reid, D-Nev., took exceptional offense to that statement at a later press conference, saying, "For anyone to suggest it's our way or the highway is absurd," he said. "We have been at the table negotiating for months," he continued adding that "No one better accuse Baucus of not being patient."

When asked whether there are any appealing bipartisan sections of Baucus' framework, McConnell said: "I haven't looked at it."

Republicans have come under fire for not proposing health reform plans of their own, but McConnell and Boehner stressed that it's because they don't think the system needs a complete overhaul. "We don't think a comprehensive approach is the way to go with this," said McConnell. "We think we ought to target the problem."

"I hope [Obama] has been listening to the American people, because I think over the course of August they've raised their voices loud and clear that they don't want this massive government take over of our health care system," added Boehner.

Harkin also added that he would like Obama to openly support a public option, without necessarily defining the terms of one.

-Ramsey Baghdadi ([email protected]) and Lauren Smith ([email protected])

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