Groups continue push for public option

By Lisa Mascaro

Published Wednesday, Dec. 9, 2009 | 3:39 p.m.

Updated Wednesday, Dec. 9, 2009 | 4:44 p.m.

WASHINGTON -- A sign of the fragility of the broad, late-night agreement on health care reform reached among Senate negotiators could be seen in the responses unfolding today in Washington.

President Barack Obama welcomed the development, saying “The Senate made critical progress last night with a creative new framework that I believe will help pave the way for final passage and a historic achievement on behalf of the American people.”

But MoveOn.org and other liberal groups said they were unwilling to accept the possible abandonment of the public option. The Progressive Change Campaign Committee began an online petition drive to its 300,000 members to pressure Senate Majority Leader Harry Reid to reverse course.

Even some of those among the team of 10 negotiators who had been working for several days to reach the compromise gave varying degrees of support for the still undisclosed details.

Republican Sen. John McCain of Arizona dismissed Reid's emerging agreement as nothing more than a "Hail Mary" pass as Democrats near their year-end deadline.

Sen. Mary Landrieu of Louisiana, who has been among the Democratic hold-outs not yet supporting the bill, was among the five moderate and five progressive Democrats at the negotiating table. She expressed interest today in the emerging Medicare proposal that would allow those ages 55 to 64 years old to buy into the program now open to seniors after they turn 65.

Speaking at a press event to highlight small business considerations in the legislation, Landrieu, who is chairwoman of the Senate Small Business Committee, noted that many small business owners fall into the 55- to 64-year-old category. The proposal, she said, “would provide some real relief for them.”

Yet Sen. Blanche Lincoln of Arkansas, another moderate Democrat negotiator who has been unwilling to support the bill as the public option now stands, said she's withholding her decision until seeing the budget analysis, which is expected within the week.

With Republicans maintaining a near-wall of opposition, Reid will need every member of his Democratic caucus or draw the few potential crossover Republicans to reach the 60-vote threshold needed to pass the bill.

Republican leaders returned from a congressional meeting this morning at the White House on jobs, saying the best way to foster employment growth would be to kill the health care bill.

Republicans believe the health care bill would be costly as new taxes proposed for the health insurance industry, pharmaceutical companies and device manufacturers would be passed along to consumers.

Republican Sen. John Ensign spoke on the floor about the various tax increases that are proposed in the bill, questioning whether imposing them would break President Barack Obama’s pledge not to raise taxes on those earning more than $250,000 annually.

Republicans further argue that penalties proposed on mid- and large-sized companies that fail to provide health insurance for their employees are making firms hesitant to add jobs. Smaller businesses would be exempt from coverage requirements, but would be eligible for tax breaks if they offer insurance.

“It’s quite curious to have a jobs summit on the same day we’re being pressed to pass a health care bill that can only be described as a jobs killer,” said Sen. Mitch McConnell of Kentucky, the Republican leader, at a press conference where participants held signs reading “Start Over!”.

Republicans spent the first week of the health care debate fighting proposed Medicare cuts in the bill.

But today they attacked the emerging Democratic proposal for expanding Medicare to a younger group of adults.

"I don't know what Senator Reid is doing," said McCain, who has taken among Republicans fighting the health care legislation.

"Looks to me, from an observers' standpoint, this is kind of a Hail Mary by Senator Reid as they approach Christmas."

After returning from the White House jobs meeting today, Reid remained mostly behind closed doors as he continued talks after last night’s announcement.

Late Tuesday Reid said a “broad agreement” had been reached on the public option, the government-run insurance plan like Medicare that has stymied the bill’s advance.

Leaders declined to discuss the details, but the agreement is believed to establish a government-managed system through which the uninsured can choose from a menu of private insurance companies, much the way the federal employees’ health benefits plan is run.

The proposal could appease Landrieu, Lincoln and a few other Democrats who have opposed a public option, worried it would drive private insurers out of business and be a potential fiscal drain if premiums paid by customers are not sufficient to cover costs.

Yet to retain support among liberal Democrats, the proposal would also include expanded Medicare coverage, stricter controls on private insurers and a possible extension of a federal children’s health insurance program run by the states, those aware of the talks have said. It may also include a back-up that would create a public-run plan if premiums are not lowered, acccording to reports.

But liberal and progressive groups were unwilling to relent on the public plan option, and launched an early morning petition drive to pressure Obama, Reid and liberal senators to change course.

MoveOn.org wrote to supporters, “If the health care bill doesn’t include a public option, it will be a huge giveaway to the insurance companies.”

The group was calling on its vast membership, many of whom backed the president and Democrats in Congress, to petition Obama and Democratic leadership.

"Health care reform MUST include a real public health insurance option that's available immediately,” the petition read. “Don't give in to conservatives and Big Insurance!"

Within a few hours, another petition drive from the Progressive Change Campaign Committee had collected 27,000 signatures pressing that Reid use the  procedural tool known as reconciliation to pass the bill with a simple 51-vote majority.