Congressional Health Care Secrecy Betrays Public Trust

In a continuing program of concealing debate and compromises on the pending health care reform legislation from the public view, Democratic leaders in both houses of Congress have agreed to bypass the formal conference committee process for reconciliation of the differences between the House and Senate bills, and instead intend to draft compromise provisions behind closed doors before the House reconvenes later this month, have the House pass the agreed compromise provisions as an amendment to the House bill, and then send the amended House bill to the Senate for a final vote in which 60 affirmative Senate votes would result in passage of an identical version to send to the Oval Office for signature before President Obama’s State of the Union address to a joint session of Congress.

By these measures, Congress would avoid public observation of the process through C-Span broadcasts of conference committee hearings and debates, and issuance of a published conference report before either house votes on the bill. This alternative to the customary procedures also insures that most Senators and Congressmen, like the rest of the citizenry, will be ignorant of the details of the 2,074 pages of the legislation they are voting on.

The House amendment will have to resolve conflicts respecting the inclusion of a “public option” in the legislation, threshold levels of premium cost for imposing a 40% tax on “Cadillac” health insurance plans, the Senate’s favored funding mechanism for the bill, and the minimum level of income before imposition of a wealth surtax, the funding mechanism favored by the House bill. Congressional leaders expect the final compromise measure to include aspects of both funding mechanisms, thereby reducing the number of taxpayers affected by either type of revenue increase.

Democrats are feeling more intense pressure to get this legislation to the president’s desk before midterm elections, as announced and expected Senate and Congressional retirements open more and more seats in both houses to Republican challengers. The Congressional Budget Office predicts that the final bill will leave between 18 million and 23 million citizens still without health insurance coverage. As of yesterday, it appeared House leaders were unwilling to press forward their version of a nationwide public option in the final legislation, since Sensate passage of such a provision appears nearly impossible.

Senate Majority Leader Harry Reid’s secretive approach to the manager’s amendment, which became the final Senate version of this bill, illustrates the sort of provisions which can creep into legislation at the last minute, leaving the public and most legislators unaware of the details of bills passed in this secretive way. While the Senate bill does not require all employers to provide workers with health insurance, it does impose a $750 per employee annual penalty on every business with over 50 employees if the business does not provide health coverage, and any one of its employees receives a federal subsidy to pay his or her individual or family health insurance premium. At the last second urging of Oregon Senator Jeff Merkley, Reid secretly accepted an amendment to the Senate bill applicable only to the construction industry, reducing the size of penalty exempt employers from 50 employees to 5 employees.

Labor unions argue the Merkley amendment is needed to avoid giving non-union contractors an unfair competitive advantage in an industry where 90% of businesses have fewer than 20 employees, and union health care costs can represent 12.5% to 20% of payroll costs. Labor’s health insurance costs are expected to increase dramatically under this legislation, by as much as $1,000 per employee per year, due to the bill’s elimination of annual and lifetime benefit limitations, preexisting condition exclusions, and extension of family coverage to children of the employee until age 26.

On the other hand, smaller contractors argue that imposition of payroll cost increases amounting to as much as 25% will require layoffs at a minimum across the home building sector, or at worst, drive many of them out of business altogether. Whether the Merkley amendment stays in the final, secretly compiled bill, remains to be seen. The ongoing closed door drafting of this legislation, which will affect each and every American one way or another, acquiesced in by Speaker Pelosi and President Obama who campaigned on pledges of greater transparency and openness in government, leaves too much room for many similar last minute special interest provisions to creep into the bill, sight unseen.

Health Care Reform Staggers Toward The Finish

If, as President Obama predicts, health care reform legislation is approaching the finish line in the Senate, then it has been staggering fitfully across the last stretch of the track. Senators are supposed to vote on this 2,000 plus page bill before Christmas, yet none of them have yet seen the actual text of the legislation. Managers of the bill will not release the final version until CBO has completed its scoring of the measure, and of course CBO is shooting at a moving target as the compromise negotiations stutter along on the two most controversial and stubbornly difficult aspects of reform: abortion funding and the public option.

Senator Joe Lieberman says he won’t vote for a bill with a public option in it, and Senator Roland Burris says he won’t vote for a bill without a public option in it. Either way, Democrats come up one vote short of the 60 needed for passage. No matter what the resolution of the public option problem, abortion coverage is an independent and equally contentious hurdle. Women’s rights advocates insist every American woman should have an avenue to purchase health coverage including the possibility of abortion services, and right to life advocates are equally insistent that not a penny of federal taxpayer dollars should go to fund the purchase of abortion insurance, either through premium subsidies or Medicare and Medicaid coverage.

Of course, passage in the Senate, whether before or after Christmas, does not assure that health care reform becomes reality. The only thing now clear about the Senate version of the legislation is that it won’t be identical to the bill already passed by the House. That means that whatever the Senate does pass will go to a conference committee, where these two seemingly impossible issues will rise again, along with the differences in approach between House and Senate tax impositions to pay for the enormous cost of expanding health coverage for those who can’t or won’t buy it on their own. Super Bowl Sunday may come and go before American citizens know what conclusion Congress reaches regarding health care reform legislation.

Obama’s New Jobs Initiative

The Obama administration and House Democrats are pushing forward a second jobs initiative this week, though prospects for Senate consideration of the measure before year end are grim. The proposal will redirect $75 billion from unspent TARP appropriations to job creation programs and extensions of emergency assistance for those now out of work. The measure is expected to ultimately include $35 billion for highway and transit construction, $2 billion for water construction projects and affordable housing construction, and about $11 billion for school construction and renovation. Additional appropriations will include $23 billion for teaching jobs, and $6 billion for other job programs including local law enforcement, summer jobs for youth, and college work/study programs and AmeriCorps job training.

Conspicuously absent from the House measure are two programs President Obama has promoted as creating “green” jobs: so called “cash for caulkers” incentives for home and business weatherization efforts, and tax incentives for small business new hiring.

Emergency relief measures in the House bill will include $79 billion to provide a six month extension of unemployment benefits, COBRA subsidies, and other “safety net” programs for the jobless. In the expectation that Senate action on the House bill will not happen until next year, the House is at the same time including a two month unemployment and COBRA benefits extension in the Defense appropriations bill, attempting to avoid the break in benefits jobless folks experienced last time Congress stalled action on unemployment extension legislation.

The White House is also proposing a $5 billion addition to tax credits for renewable energy products, in an effort to spur hiring in the manufacturing of such things as wind turbines, solar panels and electric cars. Knowing that the $2.3 billion in the stimulus package for such projects was oversubscribed suggests that users of such new incentives are ready to move at a moment’s notice.

Speaking at a Home Depot store in Alexandria, Virginia yesterday, Obama highlighted the home weatherization programs as part of the administration’s efforts to assist the construction industry, where unemployment has reached 21%. His remarks, however, glossed over the fact that the $5.5 billion appropriated in the stimulus package for energy retrofits of federal government buildings has been painfully slow to percolate out into the economy. GSA so far has allocated only $1.5 billion of the $2 billion appropriated for use in 2009. The agency is racing to allocate the remaining half billion dollars in the final two weeks of this year. Furthermore, of the $2 billion to be allocated, only $89 million, or less than 4.5%, has actually been paid out to contractors.

Reports from contractors in this sector indicate that government projects are replacing only 15% to 30% of the private sector business lost due to the crash of the economy.

New Climate Bill At Odds With Copenhagen Developments

The only really useful document coming out of the U N climate change negotiations in Copenhagen this week is a draft of the REDD draft, Reducing Emissions From Deforestation and Forest Degradation, which will be delivered today to leaders of the 200 or so nations participating in the discussions. This draft document sets up a program for paying developing nations for conserving natural assets which reduce accumulations of carbon dioxide in the atmosphere. The payments are to be funded by industries in developed nations who contribute by purchasing offsets for their carbon emissions into the atmosphere. One top U N official, when asked about the status of talks on other issues, gave a disheartening one word response: “Terrible.” U N Secretary General Ban Ki-moon, speaking of the plan to defer conclusion of a treaty to replace the Kyoto Protocol for another year, said “We do not have another year to deliberate. Nature does not negotiate.”

Meanwhile, back in Washington, Senators Maria Cantwell and Susan Collins have introduced an alternative to the climate change legislation passed earlier by the House, called CLEAR, for Carbon Limits and Energy for America’s Renewal. Directly contrary to the policy emerging in Copenhagen, CLEAR would prohibit American industries from purchasing carbon emission credits based on offsets, such as reforestation or forest conservation in other countries. Under CLEAR, the only trading in emission credits would be permitted among fuel producers, excluding both speculators and energy users from trading in carbon emission credits. The Cantwell/Collins bill would not allow large energy consumers from trading emissions credits as a hedge against rising fuel and power prices. Why is it that some elements in the United States Senate seem to be two steps behind the rest of the world when it comes to twenty first century energy policy?

Gutierrez Introduces Immigration Bill

Illinois Congressman Luis Gutierrez yesterday introduced the Hispanic Caucus version of immigration reform legislation in the House, characterizing the bill he sponsors with nearly 90 other Congressmen as “pro-family, pro-job and pro-security.” The Gutierrez bill would immediately give “nonimmigrant status” to 12 million illegal aliens upon registration with the federal government, payment of a $500 fine, plus application fees, and clearing a criminal and security background check.

After six years, or clearance of the existing backlog of green card applications, whichever comes first, the “nonimmigrants” could apply for lawful permanent resident status. The bill also repeals the 287(g) permission for state and local police enforcement of immigration laws.

While the bill calls for establishment of a permanent system for verifying a person’s work eligibility, it does not specify whether or not the existing E-verify system would be made permanent. Republican Congressmen oppose the bill. House Judiciary ranking member Lamar Smith said “Allowing millions of illegal immigrants to stay and take away jobs from citizens and legal immigrants is like giving a burglar a key to the house.”

Business groups oppose the legislation’s creation of a 100,000 visa random lottery rather than a guest worker program keyed to the unmet employment needs of the American economy.

Lobbyists Drafting Climate Change Treaty

International treaties are a lot like Congressional legislation: if you want a preview of what will be in them, you need to get to be close friends with a lobbyist. The lead lobbying organization at the Copenhagen climate change talks starting next week will be the Climate Action Network, an amalgam of 450 environmental, business and scientific groups worldwide. CAN is already circulating a proposed draft of the new treaty to replace the Kyoto Protocol among delegates and hangers on at the Copenhagen conference.

The CAN draft treaty comes complete with all the required legal language to embody international commitments on greenhouse gas reductions, economic wealth transfers to pay for the costs of environmental controls in developing nations, and a framework for a global cap and trade system of emissions futures. Of course, blanks in the draft exist where diplomats and other government functionaries from participating nations can fill in numbers representing each country’s emission and financial commitments, but except for some minor tweaking to satisfy this or that nation’s particular wants or needs, no government leader or group of leaders from the 192 participating nations needs to bother his or her staff with the details of drafting such an important international treaty – the draft already exists, and the tweaking will be mostly handled by lobbyist cell phone conversations, E-mails and twitter tweets from hallway to hotel room during the conference.

Anyone with a blackberry, a laptop and the price of air fare to Denmark can seek to participate in the real, though informal, corridor conversations which will finalize the details of the next climate change treaty, but only those folks who have already worked at establishing trust and confidence from world leaders is likely to have significant input. If you can stand the Danish winter weather, though, and you have a subscription to twitter, it would really be fun to eavesdrop on the conversations.

Secret Health Care Reform Deals Building Up In Managers’ Amendment

While the Senate floor debate on the health care reform legislation continues along predictable partisan lines, with speeches concerning dramatic reductions in grandma’s Medicare benefits and the evils of federally funded abortion coverage, the real version of the Senate bill continues to be formed deal by deal in secret in Majority Leader Harry Reid’s Senate office just across the corridor from the stately Senate Chamber in the nation’s Capitol. Reid meets privately, one on one, with Democrat Senators, asking them what they need in the managers’ amendment he will present right before the final floor vote.

Managers of legislation in the Senate have the right to accept suggested amendments to the text of legislation which has been published to members and made available to the public, and to make those changes in the bill under debate right up until the voting begins. So, neither fellow Senators nor average citizens really know what the Senate is voting on until the last second. Reid isn’t telling anyone other than the particular Senator requesting a special provision in the managers’ amendment what he is promising, and no one at all but Reid knows what the aggregate text of the managers’ amendment looks like as time marches on.

We do know that Senator Ben Nelson of Nebraska will be proposing a floor vote on his amendment which would prohibit abortion coverage altogether for anyone buying insurance from the public option and anyone who receives a federal premium subsidy. Nelson’s proposal is even more restrictive than the Stupak amendment in the House legislation.

Meanwhile, Republican amendment proposals include everything from their pet limitations on medical malpractice non-economic damages to a $400,000 ceiling on salaries of health insurance company executives.

Mercer Consulting released results of a survey shows 70% of the businesses say they will cut the health benefits available to its employees rather than pay the proposed tax on Cadillac health insurance coverage. So much for President Obama’s promise that “if you are happy with your present health insurance, you can keep it.” Sixty-three percent of businesses responding to the survey said they would cut back benefits rather than pay the tax, and another 7% said they would terminate their health plans altogether. Only 16% of those who would cut benefits said they would return any of the savings to employees in the form of higher pay. If these numbers play out, health care reform will have a negative effect on about 89% of Cadillac plan participants, most of whom are trade union members.

Thursday the Senate rejected, by a vote of 58-42, a Republican amendment to the health care bill which would have restored the $500 billion in Medicare cuts the Democrats are using to “pay for” the enormous cost of the health care reform legislation.