Producers, Allies Urge No Reconciliation for Health Care Leg

In a joint letter, a coalition of organizations representing health insurance advisers, agents, brokers and others urged congressional budget leaders to oppose including health care reform in the budget reconciliation process.

The group -- including the Independent Insurance Agents & Brokers of America, the National Association of Health Underwriters and the National Association of Insurance and Financial Advisors -- said taking the reconciliation route would skip essential deliberation and debate.

"An issue of this magnitude deserves its due consideration under regular order," the April 22 letter read. "We applaud Congress and the administration for making health care reform a top priority this year and agree that this legislation must be a bipartisan product with consultation and cooperation from the American public as well as stakeholders representing all sides."

Under the budget reconciliation process, Congress may include instructions for the purpose of legislating mandatory spending and tax revenue policy proposals. Under normal Senate operating procedures, it takes 60 votes to prevent a filibuster and pass legislation; under reconciliation, only 51 votes are required.

Democrats hold a working majority in the House of Representatives. In the Senate, Democrats currently hold 57 seats; independent Bernie Sanders of Vermont allies with the party for organizational purposes.

The letter was sent to Sen. Kent Conrad, D-N.D., chairman, Senate Budget Committee, and Rep. John Spratt, D-S.C., chairman of the House Budget Committee. The committees' ranking Republicans, Sen. Judd Gregg, R-N.H., and Rep. Paul Ryan, R-Wis., also received the letter.

Other signatories to the letter were the Council of Insurance Agents & Brokers and AHIA?NAIFA Health & Employee Benefits.

Senate Finance Committee Chairman Max Baucus, D-Mont., has said he and Ranking Member Charles Grassley, R-Iowa, will be prepared to mark up a comprehensive reform bill in June. Senate Health Education Labor and Pensions Committee Chairman Ted Kennedy, D-Mass., said he will participate in forming the legislative package that can be sent to the White House by the end of the year (BestWire, March 31, 2009).

However, some party leaders have expressed concern that any reform proposal would be bogged down by the Senate's elaborate floor rules without at least the threat of using the budget reconciliation process. Earlier this year, President Barack Obama released a budget proposal that would create a $634 billion health care reserve fund over 10 years, financed by a variety of tax increases and the virtual elimination of the Medicare Advantage program (BestWire, Feb. 26, 2009).

(By Sean P. Carr, senior associate editor, BestWeek: Sean.Carr@ambest.com)