Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, July 3, 1994 TAG: 9407030170
SECTION: NATIONAL/INTERNATIONAL PAGE: A1 EDITION: METRO
SOURCE: Knight-Ridder Newspapers
DATELINE: WASHINGTON LENGTH: Medium
The 12-8 vote by the tax-writing panel means the health reform debate will move to the floor of the House and Senate later this summer. Finance was the last of five major committees to act on a health reform bill. Three Republicans joined nine Democrats on its compromise plan.
The vote demonstrated that liberal Republicans - whose votes are critical in the Senate - are willing to buck their party's leadership to get a deal on health care. But the compromise handed Clinton a dilemma: It shows the outcome may well be much less than what the president wants.
Clinton praised the committee for moving forward, but made no direct comment on its legislation. "I remain firmly committed to guaranteed coverage for every American," he said. He has threatened to veto anything less.
A core group of liberal Republicans and conservative Democrats drafted the Finance compromise, which does not require employers or individuals to carry health insurance. Instead, it would make coverage more available by reforming insurance rules, such as those that allow insurers to deny coverage for pre-existing health problems, and offers government subsidies to help low-income people buy insurance.
Clinton's bill - and all the other congressional committee versions - require employers and employees to split health insurance premiums 80-20, with government subsidies to help small businesses and low-income people.
While the other bills would guarantee health insurance for all by 1998, the Finance measure sets a goal of covering 95 percent of Americans by 2002.
However, the bill may be so seriously underfunded that it could fail to reach that target. Part of the problem is that senators improved benefits in last-minute bargaining at the same time they cut back financing. Accurate cost estimates on the legislation were unavailable.
The plan calls for taxing high-cost insurance premiums and raising the cigarette tax by $1 a pack - to $1.24.
A 1 percent payroll tax on companies with 500 or more workers was stripped from the bill Friday night, draining it of an estimated $50 billion in revenue over five years.
The all-male committee also scaled back coverage of abortion. Under Clinton's bill, all women would be assured insurance coverage for elective abortions. Finance allowed insurance companies to drop abortion coverage and left employers free to choose plans that do not pay for abortions.
Supporters of the bill said bipartisan cooperation in the midst of an ideologically charged debate over health reform was in itself a major accomplishment. They said their bill was close to what Congress would ultimately approve.
"We believe very, very strongly that this is a measure that can pass and be signed by the president so we can have health care reform this year," said Sen. John Chafee, R-R.I. He estimated the bill would extend health insurance to 20 million of the 39 million uninsured.
Chafee and two other Republicans, John Danforth of Missouri and Dave Durenberger of Minnesota, voted for the compromise, which was drafted in negotiations with conservative Democrats.
Several liberal Democrats said they voted for the measure simply to get something - anything - out to the floor.
by CNB