Senate Health Care Reform Bill on the Verge of Passage

On Saturday morning, December 19, 2009, Senate Majority Leader Harry Reid introduced amendments to his health care reform bill. The almost 400 pages of amendments are the result of weeks of internal debate among Senate Democrats designed to draft a bill which would garner the support of all 58 Democrats and the two Senate Independents – the 60 votes necessary for a filibuster proof majority.

The final breakthrough was the result of marathon negotiations with Senator Ben Nelson of Nebraska regarding issues related to abortion, such as permitting states to prohibit plans sold within their borders through health insurance exchanges from covering abortion services, and securing additional federal funds to reduce the burden on states caused by the expansion of Medicaid. Various other concessions were necessary to secure all 60 votes. For example, the Senate bill will not include a public option. Instead, the bill includes the creation of multi-state, non-profit health insurance plans negotiated by the Federal Office of Personnel Management, which manages the Federal Employees Health Benefit Program.

While it appeared that Senator Reid had lined up the 60 votes he needed, the Republicans made it clear that they would not simply capitulate. For example, the Republican leadership demanded that the amendments be read aloud on the floor of the Senate. After a day-long debate on Sunday, December 20, the Senate acted at approximately 1:00 a.m. on Monday, December 21, to cut off a Republican filibuster on a party-line vote of 60 to 40. The final vote is scheduled to take place at approximately 8:00 a.m. on December 24, 2009. Senate and House conferees would then meet to craft a final merged bill to send to President Obama for his signature in early January. There are some important differences between the House and Senate versions, including the fact that the House version includes a public option, but given the effort to create a fragile filibuster proof majority in the Senate, it is unlikely that the House conferees will demand changes that are likely to fracture this Senate majority. As a result, it now appears certain that the most significant health care reform package since the 1960s will pass.

We have established a multi-disciplinary health care reform team that is reviewing each aspect of the legislation and how it will impact employers, benefit plans, taxpayers, providers, and individuals and entities interested in pursuing the many business opportunities that will result from the legislation. Please look for updates on this effort over the next several days. In the meantime, if you have any questions, please do not hesitate to contact Greg Pemberton, Kevin Woodhouse or Sarah Cotterill.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice.  The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.