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In his State of the Union address on Jan. 27, President Obama focused largely on economic issues such as job creation and the middle class and did not lay out a specific plan for proceeding on healthcare reform.  However, he encouraged Members to take another look at the bills passed by the House and Senate late last year and urged them not to “walk away from reform.” This was a clear signal that the President supports the bills under consideration and wants the Congress to move forward this year.

Democrats’ healthcare reform plans have been in flux since Republican state Senator Scott Brown’s Jan. 19 election to the Massachusetts U.S. Senate seat held by the late Senator Edward Kennedy.  Brown’s election means Democrats no longer have a filibuster-proof, 60-vote majority needed to advance legislation in the Senate - causing the Democratic leadership to weigh various options for proceeding.

While Democrats have emphasized that no decisions have been made, they appear to be considering several possible paths.  House Speaker Nancy Pelosi (D-CA) is pushing hard to urge the Democratic caucus to pass the Senate bill and use a “reconciliation” bill process to “fix” several of the provisions the House finds unacceptable.  These changes would likely involve closing the Medicare drug “donut hole”, increasing subsidies for low-income families, and giving unions a five-year delay in the high-value insurance plan tax. It might also include the House bill’s federally run insurance exchanges, which would undermine the state regulatory structure in place now.  Under reconciliation procedures, the Senate could pass these “fixes” with a simple 51-vote majority,  thus avoiding the problem of getting the 60 votes that are traditionally needed to advance legislation in that chamber.

Another option is scaling back pending reform bills and trying to pass legislation focused on tax credits to help small businesses provide coverage to their workersm Medicaid expansion,  and new rules prohibiting insurers from denying coverage based on pre-existing conditions.  However, a scaled-back bill would likely remove the personal responsibility requirement from proposed insurance reforms, which would enable people to wait until they are sick to purchase coverage.  This would result in higher premiums for everyone and run counter to reform goals. It might also include the problematic national exchange provision.

While the specific course remains uncertain, it is clear that Democrats intend to push forward with healthcare reform legislation this year.

Please stay tuned to this page for ongoing updates as the healthcare reform process moves forward.

Take Action – Your Help is Needed
 
In what may be the final weeks before health reform’s final passage, it’s critical that Blue Ambassadors continue to reach out to their Congressional delegations.  Key messages include keeping a government-run plan out of the final package and assuring affordable premiums for all Americans.
 
To learn more about key reform provisions and where BCBSA stands, visit the Blue Ambassadors Issues page for an overview and links to more detailed information.  Most importantly, take action by visiting the Blue Ambassadors homepage and entering your zip code to send e-mails directly to your Senators and Representative.
 
You can also join hundreds of your colleagues participating in the Blue Ambassadors program who have lit up the Capitol Hill switchboard and been connected directly to their Senators by calling 1-877-625-8366 between 8 a.m. and 6 p.m. Eastern Standard Time, Monday through Friday. When you call this free, automated line, you will be asked for your ZIP code to identify your Senators.
 
You will be provided with instructions for communicating with these offices – including talking points if you choose to use them – and then be connected to one of your Senators. You can share feedback about your calls with us at feedback@blueambassadors.org.