NYT Reports That Senators Are Working On A Fiscal Cliff Deal — And Paul Krugman Is Already Furious

[ProSense]

43. Facts:

Senators Reject Pair of Public Option Proposals

By ROBERT PEAR and JACKIE CALMES

WASHINGTON — After an intense debate that captured the essence of the national struggle over health care, a pivotal Senate committee on Tuesday rejected two Democratic proposals to create a government insurance plan to compete with private insurers.

The votes, in the Senate Finance Committee, underscored divisions among Democrats and were a setback for President Obama, who has endorsed the public plan as a way to “keep insurance companies honest.”

The first proposal, by Senator John D. Rockefeller IV of West Virginia, was rejected 15 to 8, as five Democrats joined all Republicans on the panel in voting no. The second proposal, by Senator Charles E. Schumer of New York, was defeated 13 to 10, with three Democrats voting no.

The votes vindicated the middle-of-the-road approach taken by the committee chairman, Senator Max Baucus, Democrat of Montana. Mr. Baucus voted against both proposals, which were offered as amendments to his bill to expand coverage and rein in health costs.

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http://www.nytimes.com/2009/09/30/health/policy/30health.html

Blanche Lincoln voted against both, which was why the unions opposed her re-election.

Senators Send Reid A Letter Urging Inclusion Of Public Option In Health Reform Bill
By The Public Record
The Public Record
Oct 8th, 2009

Thirty U.S. Senators signed a letter today urging the inclusion of a public option in any health reform legislation that will be considered on the Senate floor. An additional 14 Senators at least have expressed support for the public option through a resolution, letter, or by voting for a strong public option during committee markups.

Sen. Sherrod Brown, D-Ohio, circulated a letter Thursday to show depth of support for public option among Senate Democrats.
Thirty U.S. Senators signed a letter today urging the inclusion of a public option in any health reform legislation that will be considered on the Senate floor. An additional 14 Senators at least have expressed support for the public option through a resolution, letter, or by voting for a strong public option during committee markups.

The letter, which was circulated by U.S. Sen. Sherrod Brown (D-OH), was signed by Brown; John D. Rockefeller (D-WV); Russell D. Feingold (D-WI); Patrick J. Leahy (D-VT); Daniel K. Akaka (D-HI); Tom Udall (D-NM); Kristen E. Gillibrand (D-NY); Roland W. Burris (D-IL); Ron Wyden (D-OR); Debbie Stabenow (D-MI); Barbara Boxer (D-CA); Sheldon Whitehouse (D-RI); Michael F. Bennet (D-CO); Dianne Feinstein (D-CA); Jack Reed (D-RI); Jeff Merkley (D-OR); Frank R. Lautenberg (D-NJ); Benjamin L. Cardin (D-MD); Al Franken (D-MN); Robert P. Casey, Jr. (D-PA); Barbara A. Mikulski (D-MD); Daniel K. Inouye (D-HI); Edward E. Kaufman (D-DE); Arlen Specter (D-PA); Maria Cantwell (D-WA); Robert Menendez (D-NJ); Bernard Sanders (I-VT); John F. Kerry (D-MA); Herb Kohl (D-WI); and Paul Kirk (D-MA).

“Support for the public option runs deep in the Senate,” Brown said. “Health insurance reform is all about lowering costs, improving care, and increasing choice for consumers. In too many parts of the country, one or two insurance companies control the majority of the market. This isn’t good for consumers, businesses, or taxpayers. As we finalize health reform legislation, we shouldn’t forget that a majority of Americans, doctors, and Members of Congress support a public option.”

The Senators’ letter expresses concern that “absent a competitive and continuous public insurance option – health reform legislation will not produce nationwide access and ongoing cost containment.”

- more -

http://pubrecord.org/politics/5710/senators-letter-urging-reid/

Watch: http://www.democraticunderground.com/1002490841

It basically states that the bill's passage depended on getting the votes of Democratic Senators who sided with the insurance companies. From the clip:

They killed the public option to appease Lieberman and others (not mentioned is that Blanche Lincoln voted against both versions of the public option in committee).

They lowered proposed taxes for medical device makers to appease Evan Bayh.

They expanded Medicaid to appease Ben Nelson.

What's fascinating is that those three Democratic Senators (and others) voted to pass the Senate bill after the public option was dropped.

Then once Democrats lost the 60th vote, they still had to rely on reconciliation to pass the Conference Report. Three Democrats bailed: Blanche Lincoln, Mark Pryor and, surprise, Ben Nelson.

The health care law was the biggest positive for low income Americans since Medicaid was implemented
http://www.democraticunderground.com/10021441139