Waxman Insists Public Plan Option Will Be Part of Health Overhaul

Copyright 2009 GalleryWatchAll Rights Reserved CongressNow

May 4, 2009 Monday

SECTION: Health

LENGTH: 381 words

HEADLINE: Waxman Insists Public Plan Option Will Be Part of Health Overhaul

BYLINE: Stephen Langel, CongressNow Staff

Energy and Commerce Chairman Henry Waxman (D-Calif. ) today reiterated his belief that any health overhaul legislation must offer a government-run insurance coverage option in order to win support from House Democrats.

Waxman's remarks, at a conference sponsored by Avalere Health, come as the White House and some Senate Democrats have suggested health care overhaul legislation need not contain a government-run option to have their support.

According to Waxman, Democrats have already compromised on health overhaul legislation by no longer insisting that the bill require a single-payer system run by the federal government. He said a compromise with both public and private options would allow for "creative tension" and better-run programs.

Waxman however, ruled out any deal that would allow for using a public option only as a fallback if private insurance coverage were not available. He said that the Medicare Part D prescription drug coverage program operates under those rules and that they have only created confusion and increased costs.

"The whole idea of a fallback is really problematic to us," added a Ways and Means Democratic aide, who cited cost concerns, too.

Waxman said House Democrats would release health overhaul bill language within the next month that will be marked up by the Energy and Commerce, Ways and Means, and Education and Labor committees by the end of July. He said he still believes the bill will become law by year's end.

Meanwhile, Senate Finance Chairman Max Baucus (D-Mont.) told reporters today that his panel would draft a proposal that ensures a level playing field between public and private insurance plans, but offered no details. "We have to think that through a lot," he said.

Baucus also said health care legislation may not be able to permanently fix a perennial problem with Medicare reimbursement rates for doctors.

Congress annually has to freeze the rates in place or doctors would face steep cuts in their Medicare reimbursement payments. Lawmakers have been reluctant to freeze the cuts beyond a year or two because of the long-term costs of maintaining higher rates.

Baucus said that because of the costs involved in the larger overhaul, doctors may only see their rates frozen, or even slightly increased, over the next three years.

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