Senate Finance Committee Releases Long-Awaited Health Care Plan

by Julianne LaJeunesse- University of New Mexico

Sen. Max Baucus (D-Mont.) released the Senate Finance Committee’s highly-anticipated version of a health care reform proposal Wednesday, which he says has a strong chance of passing the Senate despite having no public Republican backing at this time.

In a statement, Baucus said “the $865 billion dollar package will not add to the Federal deficit” and will instead begin to decrease the deficit by the ninth year of its first 10-year implementation.

According to Baucus, under the proposal the Federal government would be responsible for most of the costs of insuring people. However, states would also have to come up with some of the money.

Under the plan, states would see about an .89 per cent net increase in Medicaid costs, which Baucus says has already been discussed with some state governors.

“I frankly think that this is pretty much resolved… that is the Medicaid expansion,” Baucus said Wednesday. “We, our “Group of Six,” have had several conversations with governors, several conference calls, one yesterday… with maybe a dozen governors, bipartisan, [and] explained what the net result would be to governors under expansion of Medicaid.”

The Congressional Budget Office estimates the $865 billion dollar gross price tag for “The America’s Healthy Future Act” includes about $300 billion for Medicaid; $400 billion to Exchange Tax Credits (which are proposed credits for people purchasing plans on the individual market and not through employers); about $100 billion to Medicaid, Medicare and Doc Fix changes (which could include changes to health care insurance providers); and about $24 billion to small businesses for tax credits.

Sen. Baucus admitted that while he believes the Committee plan is good, more adjustments need to be made. He said he is relying heavily on changes to the proposal before it can best serve Americans.

The Senate Finance Committee will vote on the proposal next week.