Baucus Reveals His New Health Care Proposal, No Republicans On Board

Senator Max Baucus (D-MT) unveiled the mark-up draft of his new $856 billion dollar health care reform proposal today. He calls it the “America’s Health Future Act.” You can read the text here on Right Soup.

The plan mandates individuals must have health insurance, with fines of $3,800 for non-compliance. It provides for a government run insurance exchange, and a government initiated Co-Op. It has $349 billion in new taxes and fees, $507 billion in cuts to government programs including Medicare. It proposes a 35% tax on “Cadillac Plans.” No tort reform is included; instead the plan provides for a toothless “sense of the Senate” resolution saying it would be a nice idea. Whatever.

No Republicans have signed on to this one, and the “Gang Of 6″ who were attempting a bi-partisan health care reform proposal are noticeably absent too.

The bill was swiftly denounced by Senate Minority Leader Mitch McConnell, who complained it would cut Medicare, which provides insurance to the elderly, and impose new tax burdens on families and small businesses.

Sen. Baucus defended his proposal, saying:

“What we can do is seize this opportunity to put America back on a fiscally sustainable path. The Senate Finance Committee proposal builds on what already works and fixes what threatens to break the bank for future generations.”

McConnell countered with:

“Only in Washington would anyone think that makes sense, especially in this economy,” he said, adding taxpayers don’t want “yet another thousand-page, trillion-dollar government program.”

The measure would broaden eligibility for Medicaid, the existing federal-state health program for the poor, and it would create a new national insurance exchange, where individuals and small businesses can purchase insurance. Individuals and families would be required to purchase insurance and would face penalties for not doing so.

Those at the lower end of the income ladder, and who aren’t on Medicaid, would receive federal tax subsidies to defray the cost. The subsidies, in the form of a refundable tax credit, would be granted to individuals and families with incomes up to 300% of poverty. For those with incomes from 300% to 400% of poverty, the bill would cap annual insurance premiums at 13% of income. Even liberal critics say that level is too large and would expose middle-income families to big new expenses.

The bill would levy a new 35% excise tax on high-dollar insurance plans. These are plans with values above $8,000 for individuals and $21,000 for families. The premium tax would take effect in 2013 and raise $215 billion over 10 years, according to a preliminary estimate from the Joint Committee on Taxation.

The bill would also levy a total of $93 billion in fees on health-care-related industries over 10 years. Big Pharma would face an annual assessment of $2.3 billion, medical-device manufacturers $4 billion and health insurers $6 billion, all determined by a firm’s market share.

The plan would now go to the Senate Finance Committee, where no one is presently on board. The Obama administration, however, has indicated that it likes the idea. Surely this is because the government Co-Ops and Insurance Exchange will serve to get its nose under the tent, and pave the way for massive more government control. Harry Reid is on record as saying that he is more than willing to ram health care reform through without bi-partisan support, using the odious practice of reconciliation.

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