Pelosi: Bill Will Cost $894B, Cover 36 Million More
Jason Plautz
Thursday, October 29, 2009 12:03 PM
House Speaker Nancy Pelosi, D-Calif., this morning rolled out a health care reform plan that she said would reduce the federal deficit and insure an additional 36 million Americans.
Speaking at a rally on the steps of the Capitol, Pelosi said the House bill will cost $894 billion and cut the deficit by $30 million over 10 years, which means it would meet President Obama's budget requirements. It would also extend coverage to 96 percent of the population. Top Democrats say the numbers are based on estimates from the Congressional Budget Office, which has yet to formally score the bill.
The bill includes a public option, though not a "robust" one that ties its rates to Medicare. Instead, it's the more moderate plan preferred by Blue Dog Democrats that allows government officials to negotiate rates with doctors and providers. The plan also expands Medicaid coverage to 150 percent of the federal poverty level.
The plan takes a large chunk of its offsets from a so-called "millionaire's tax," a surcharge on individuals earning more than $500,000 and couples earning more than $1 million. It also tightens Medicare and Medicaid spending to make the bill deficit-neutral. The bill's cost was greatly reduced from initial estimates that had the plan at $1.04 trillion over 10 years. However, analysts warn that promises to close the Medicare "doughnut hole" that leaves some seniors without prescription drugs will bring the cost back above the $900 billion goal.
The full text of the bill is available from the House Web site. Pelosi said she plans to bring it to a vote by Veteran's Day in the hopes of having it on the president's desk before the end of the year.
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