Federal health reform legislation quickly taking shape

On the same day that Sen. Ted Kennedy introduced his proposed health reform legislation, three House committees also released a version of legislation aimed at revamping the U.S. health care system (Source: “Plan makes companies provide health insurance,” Cleveland Plain Dealer, June 10, 2009).

Among the provisions in the House Democratic bill are a requirement that companies provide insurance for their employees,coupled with a requirement that all individuals have coverage, except in cases of hardship. The employer mandate that is being sharply criticized by Republicans and business groups.

The proposal also includes a public health insurance option and an expansion of Medicaid for low-income people. It allows patients to keep their current health plans and sets up a "health insurance exchange" wherein small businesses and individuals can comparison shop between new public health insurance and private insurers.

"This framework will build upon what works by ensuring that patients can keep their health coverage if they like it, preserve patients' choice and reduce costs," according to a statement from Ways and Means Committee Chairman Charles Rangel of New York, Energy and Commerce Committee Chairman Henry Waxman of California and Education and Labor Committee Chairman George Miller of California.

Although a long-time proponent of both a public option and an employer mandate, Kennedy omitted both provisions from his draft bill, pending further negotiations with Republicans. His legislation does require an individual mandate, prohibits insurers from refusing to cover pre-existing conditions and places other restrictions on the insurance industry. It also would establish online exchanges where the uninsured and employees of small companies could shop for affordable insurance policies.