Health Care Bill Won't Make It Before August Recess

It sounds like President Obama is getting his way on the issue of health care reform. A group of four Blue Dog Democrats announced Wednesday that they have reached a deal to get the health care bill passed. Although, they have agreed to move forward with new provisions, the bill will not be passed by the House before their August recess. These new talks will address the systemic problems that have plagued the health care industry for years. Democrat leaders and White House executives hope to lower the cost of health care by a $100 billion and introduce a health care exchange plan as a public insurance option. Today, President Obama commanded these politicans for their hard work and stressed the urgency of health care reform at a town hall meeting in Raleigh, North Carolina.

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Time Out on New Health Care Reform

On Wednesday, Conservative House Democrats indicated that President Obama's timeline for overhauling the American health care system before the Congress' August recess is unreasonable. Lawmakers are upset by the idea of tax increases on the wealthy to contribute/ subsidize the middle and lower class citizens health insurance coverage. They are also concerned about allowing the government the ability to provide health insurance coverage to compete with the private health insurance sector.

The health care issue has become a huge test of President Obama's leadership and commitment to the American people. Recent polls have shown that the American public is losing confidences in their leader. As lawmakers continue to debate the issue, the realization that President's Obama's dream of restructuring the American health care system is a long way away.

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The Senate Health Committee Milestone Vote

With a 13 to 10 vote, the Senate health committee passed a bill that would require individuals to obtain health insurance and force employers to contribute to the cost. The government would provide assistance to individuals and families to pay for these premiums. The House Democrat leaders pledged to meet the president's goal of new health care legislation before the Senate's August recess. This vote is one step closer to forcing all Americans to obtain health insurance coverage or face penalties. The medical providers, employers, and the wealthy Americans are ones who are left to pick up the tab on this bill.

The Democrats' plan calls for a 5.4% tax increase on individuals making more than a million dollar per year, with a smaller tax beginning for individuals making more than $280,000. Large business employers who don't provide coverage for their employees would be penaltized up to 8% of the workers' wage (with exemption for small businesses). Individals who are offered coverage, but decline would have to pay 2.5% penalty based on their incomes (up to the average cost of a health insurance plan). Democratic aides indicate that the total cost of the bill would be about $1.5 trillion over next 10 years.

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Democrat Blue Dogs Take A Bite Out Of Health Care Reform

On Friday July 10, Vice President Joe Biden reinforced the importance of overhauling the American Health Care system. He warned that if America's small business owners don't act now, there could be catastrophic results for the private insurance sector. He stated that health care reform is the "foremost economic and moral issue that this administration is determined to deal with." He noted that employer-provided health insurance premiums have doubled in the past nine years, rising three times faster than these employee's wages.

The vice president's comments come a day after conservative House Democrats aka "Blue Dogs" put a halt to health care legislation by submitting a signed letter stating that the bill lacks the proper structure to fix the issues of the health care system in the United States. During Vice President Biden speech, House Speaker Nancy Pelosi met with the members of the Blue Dogs Coalition to discuss the details of the bill. In the letter and in the meeting, the conservative Democrats stressed they do not want a "Medicare-like" structure for the public health care option. "What we are saying is - if there is a public option, it can't be based on Medicare rates unless the regional disparity in Medicare rates is fixed."

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