An Alabama commission headed by the governor took action this week that could clear the way for the state to sell the almost 150-year-old Bryce Hospital in Tuscaloosa to the University of Alabama. The Amendment 666 Bond Commission voted to authorize the state Finance Department to sell up to $139 million in state bonds for economic development. Commission members did not say what projects might be funded with the money, but part of the funds could be used to help fund the building of a new mental hospital if the Bryce property is sold.
The costs of healthcare reform being pushed through Congress by Democrats will be felt long before the benefits. Proposed taxes and fees on upper-income earners, insurers, even tanning parlors, take effect quickly. So would Medicare cuts. Benefits, such as subsidies for lower middle-income households, consumer protections for all, and eliminating the prescription coverage gap for seniors, come gradually. Most of the 30 million uninsured helped by the bill won't get coverage until 2013 at the earliest, well after the next presidential election. More than two-thirds of Americans get their coverage through large employer plans and their premiums won't go up because of the legislation, according to number crunchers at the nonpartisan Congressional Budget Office. But Congress can't abolish medical inflation, so don't expect premiums to drop. For people who buy their own insurance policies, about one of every six Americans, premiums will go up. But that's for better benefits prescribed under the legislation. And about half of them would get tax credits to substantially lower their costs.
As the Senate lumbers toward passage of its healthcare bill, Democrats are looking ahead to the potentially difficult process of reconciling its substantial differences with the more liberal House version—the last major obstacle before President Obama can sign landmark legislation into law. Democrats are hopeful that the momentum generated by the long-awaited Senate vote—and the high political stakes involved in finishing the job—will grease the wheels of negotiations with the House. But after lawmakers enjoy what is left of the holiday season in their home states, they will return to wide and deeply held differences between the House and Senate bills on federal funding for abortion and the liberals' dream of establishing a "public option"—a government plan that would compete with private insurers—to guarantee access to affordable insurance. Negotiators also will have to hammer out disagreements that will determine how quickly the bill takes effect, what taxes will be raised, and other items that reach deeply into every hospital, doctor's office, and home medicine cabinet.
A last-minute addition to the Senate healthcare bill that requires small construction companies to offer health coverage or pay a fine touched off a battle with some industry groups demanding its removal. The change, offered by Sen. Jeff Merkley (D-OR), says construction companies should offer coverage if they have five or more employees and a payroll of $250,000 or more, or face fines of up to $750 per employee per year if the employees receive tax credits. The threshold for other types of companies is 50. Construction-related industries say it is unfair to single them out, as the recession has hit them particularly hard. Recent data show that unemployment in construction is 19.4%, nearly twice the national average of 10%.
Companies are alarmed at potentially costly provisions in the Senate healthcare bill, many of which they hope will be scrapped during a final round of negotiations early next year. A scramble to massage the hefty measure, instead of pushing to kill it, reflects the view of many in the business community that a sweeping remake of the healthcare system now appears inevitable. The U.S. Chamber of Commerce is among a few big business groups calling for Congress to scrap the overhaul effort. Business is worried that President Barack Obama's push to extend coverage to millions more Americans will raise the burden on employers. Business groups have widely criticized the 2,074-page Senate bill, which looks set for passage on Christmas Eve. They also have offered a variety of fixes.
The top prosecutors in seven states are probing the constitutionality of a political deal that cut a funding break for Nebraska in order to pass a federal healthcare reform bill, South Carolina's attorney general said. Attorney General Henry McMaster said he and his counterparts in Alabama, Colorado, Michigan, North Dakota, Texas, and Washington state—all Republicans—are jointly taking a look at the deal they've dubbed the "Nebraska compromise." McMaster's move comes at the request of Republican U.S. Sens. Lindsey Graham and Jim DeMint of South Carolina.