AHIP Rejects Insurance Industry Fees in Baucus' Health Reform Bill

As Congress returned to session, key senators returned immediately to the debate over health reform. Sen. Max Baucus reportedly handed out copies of a draft bill to Senate colleagues that represents some of the bipartisan negotiation he's led among the "Gang of Six" members of his Senate Finance Committee. According to widely reported details about Baucus' bill, it doesn't include the so-called "public option" -- the government-run insurer that is strongly opposed by the insurance industry. However, it would charge insurance companies fees to pay for some of the reform -- an idea criticized by industry representatives.

"New taxes on health insurance will only make it harder for families and small businesses to afford coverage," said Robert Zirkelbach, spokesman for America's Health Insurance Plans. "The American people want reform that eases the burden of rising medical costs and puts our health care system on a sustainable and fiscally responsible path -- not new taxes on health insurance."

On the first day back from the August recess, Sept. 8, congressional Democrats met with President Barack Obama at the White House to talk about the health care battle -- reportedly including Baucus' proposal. The committee chaired by Baucus, D-Mont., is the only one of five relevant congressional committees that hasn't yet passed some version of health legislation. It's been the only committee seeking a bipartisan compromise on legislation, although the task has increased in difficulty as the debate has become more heated.

Presidential spokesman Robert Gibbs said about Baucus' bill: "Obviously we'd be pleased if the Finance Committee, throughout the course of the next few days, came up with a proposal."

Obama will raise the stakes of the debate when he makes an unusual Sept. 9 speech on the floor of the House chamber to a combined congressional audience.