Published on 07-03-2009 Email To Friend Print Version
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Americans who refuse to buy affordable medical coverage could be hit with fines of more than $1,000 under a health care overhaul bill unveiled Thursday by key Senate Democrats looking to fulfill President Barack Obama’s top domestic priority.

The Congressional Budget Office estimated the fines will raise around $36 billion over 10 years. Senate aides said the penalties would be modeled on the approach taken by Massachusetts, which now imposes a fine of about $1,000 a year on individuals who refuse to get coverage. Under the federal legislation, families would pay higher penalties than individuals.

In a revamped health care system envisioned by lawmakers, people would be required to carry health insurance just like motorists must get auto coverage now. The government would provide subsidies for the poor and many middle-class families, but those who still refuse to sign up would face penalties.

Called “shared responsibility payments,” the fines would be set at least at half the cost of basic medical coverage, according to the legislation. The goal is to nudge people to sign up for coverage when they are healthy, not wait until they get sick.

In 2008, employer-provided coverage averaged $12,680 a year for a family plan, and $4,704 for individual coverage, according to the Kaiser Family Foundation’s annual survey. Senate aides, who spoke on condition of anonymity because they were not authorized to speak publicly, said the cost of the federal plan would be lower but declined to provide specifics.

The legislation would exempt certain hardship cases from fines. The fines would be collected through the income tax system.

The new proposals were released as Congress neared the end of a weeklong July 4 break, with lawmakers expected to quickly take up health care legislation when they return to Washington. With deepening divisions along partisan and ideological lines, the complex legislation faces an uncertain future.

Obama wants a bill this year that would provide coverage to the nearly 50 million Americans who lack it and reduce medical costs.

In a statement, Obama welcomed the legislation, saying it “reflects many of the principles I’ve laid out, such as reforms that will prohibit insurance companies from refusing coverage for people with pre-existing conditions and the concept of insurance exchanges where individuals can find affordable coverage if they lose their jobs, move or get sick.”

The Senate Health Education, Labor and Pensions bill also calls for a government-run insurance option to compete with private plans as well as a $750-per-worker annual fee on larger companies that do not offer coverage to employees.

Sens. Edward M. Kennedy, D-Mass., and Christopher Dodd, D-Conn., said in a letter to colleagues that their revised plan would cost dramatically less than an earlier, incomplete proposal, and help show the way toward coverage for 97 percent of all Americans.

In a conference call with reporters, Dodd said the revised bill had brought “historic reform of health care” closer. He said the bill’s public option will bring coverage and benefit decisions driven “not by what generates the biggest profits, but by what works best for American families.”

The Congressional Budget Office, in an analysis released Thursday evening, put the net cost of the proposal at $597 billion over 10 years, down from $1 trillion two weeks ago. Coverage expansions worth $645 billion would be partly offset by savings of $48 billion, the estimate said.

However, the total cost of legislation will rise considerably once provisions are added to subsidize health insurance for the poor through Medicaid. Those additions, needed to ensure coverage for nearly all U.S. residents, are being handled by a separate panel, the Senate Finance Committee. Bipartisan talks on the Finance panel aim to hold the overall price tag to $1 trillion.

The Health Committee could complete its portion of the bill as soon as next week, and the presence of a government health insurance option virtually assures a party-line vote.

In the Senate, the Finance Committee version of the bill is unlikely to include a government-run insurance option. Bipartisan negotiations are centered on a proposal for a nonprofit insurance cooperative as a competitor to private companies.

Three committees are collaborating in the House on legislation expected to come to a vote by the end of July. That measure is certain to include a government-run insurance option.

At their heart, all the bills would require insurance companies to sell coverage to any applicant, without charging higher premiums for pre-existing medical conditions. The poor and some middle-class families would qualify for government subsidies to help with the cost of coverage. The government’s costs would be covered by a combination of higher taxes and cuts in projected Medicare and Medicaid spending.

July 3- In 1775, George Washington takes command of the Continental Army. In 1778, British Loyalists massacre 360 American patriots in Wyoming Valley, Pennsylvania. In 1884, the Dow Jones publishes its first stock average. In 1890, Idaho is admitted to the union as the 43rd of the several states. In 1952, the United States Congress approves what passes for Puerto Rico’s Constitution. In 1988, the USS Vincennes shoots down Iran Air flight 655 over the Persian Gulf, killing all 290 aboard.

July 4- In 1776, the Declaration of Independence is formally adopted by the Second Continental Congress. In 1826, Thomas Jefferson and John Adams both pass from among us. In 1845, Henry David Thoreau begins his two-year sojourn at Walden Pond. In 1862, Lewis Carroll spins a yarn for Alice Liddell. In 1934, the engineering for an atomic bomb is patented by Leo Szilard. In 1946, 48 years after the United States claimed ownership of the Philippines and crushed resistance to its occupation at the cost of a million dead Filipinos, the country is granted independence.

July 5- In 1687, Isaac Newton publishes his ‘Philosophiæ Naturalis Principia Mathematica’, laying out the foundation of his revolution in human understanding of the natural world. In 1865, the Salvation Army is founded in East London. In 1937, the highest temperature ever recorded in Canada– 113 O F– is reached. In 1946, the bikini is introduced in France. In 1954, Rock ‘n’ Roll is born, with Elvis Presley’s first commercial recording session. In 1996, Dolly the sheep is produced by cloning. In 1999, President Clinton imposes trade and economic sanctions against the Taliban government of Afghanistan.

July 6- In 1415, early Protestant reformer John Huss is burned at the stake by the Roman Catholic Church. In 1535, Sir Thomas More is executed by English King Henry VIII for refusing to countenance Henry’s decision to formally transform the Church of England into a Protestant church. In 1785, the dollar of silver– 27 grams– is chosen as the official American currency. In 1854, the first Republican Party convention is held. In 1887, the King of Hawaii is forced at gunpoint to sign a new Constitution written by Americans living in the islands which transferred power to the foreigners and set the stage for Hawaii’s annexation by the United States.

July 7- In 1863, The Union institutes a draft during the War Between The States– exemptions are available for $100. In 1898, Hawaii is annexed by the United States. In 2005 four explosions occur in the British mass-transit system, duplicating in remarkably precise detail the storyline of a “training exercise” against possible “terrorism” being conducted in exactly the same locations at exactly the same times. The event briefly raises Prime Minister Tony Blair’s abysmal approval rating to it’s highest point in two years, before it drops again back into the low 30s.

July 8- In 1775, the Continental Congress sends its final appeal to King George to redress the colonists’ grievances. The King pays attention as respectfully as today’s federal government does to the Constitution. In 1776, the Declaration of Independence is read aloud to the people of Philadelphia, and the Liberty Bell is rung.

July 9- In 1810, Napoleon annexes the Kingdom of Holland. In 1816, Argentina declares independence from Spain. In 1900, the Commonwealth of Australia is created. In 1922, Johnny Weissmuller sets a new world record with a 58.6 second 100 meter freestyle swim. In 1958, a 524-meter tsunami– the highest wave ever recorded– strikes Lituya Bay, Alaska. Interesting enough is the fact that someone was experimenting with under water nuclear detonation at the time…