Senate Finance Committee Chairman Proposes Framework for Healthcare Reform
Tuesday, September 8, 2009
On September 8, 2009, Senate Finance Committee Chairman Baucus (D-MT) circulated a draft framework for healthcare reform legislation. This framework contains key elements of the legislation including an individual mandate beginning in 2013; small business tax credits; and state-based health insurance exchanges that will include SHOP. The outline does not include a public option, however, it creates Consumer Operated and Oriented Plans (CO-OP)s- which are nonprofit, member-run health insurance companies.
The framework also suggests a few revenue provisions for healthcare reform, including a 35 percent tax on insurance companies and insurance administrators for any health insurance plan that is above $8,000 for singles and $21,000 for family plans. It would also impose an annual fee of $2.3 billion on the pharmaceutical manufacturing sector and an annual fee of $6 billion on the health insurance sector, both beginning in 2010.
The bipartisan “Gang of Six” which includes Senators Baucus, Grassley, Enzi, Bingaman, Conrad and Snowe will be meeting to discuss this outline and will hopefully come one step closer to releasing a formal bill by their self-imposed deadline of September 15th.
Click here to read the proposed framework.