By James Rowley Jan. 12 (Bloomberg) — President Barack Obama , weighing in on congressional health-care negotiations, favors a U.S. House plan to set up a nationwide exchange on which people could buy insurance at lower prices, a House leadership aide said. Obama also backs a House proposal to repeal the insurance industry’s antitrust exemption, said the Democratic aide, who spoke on condition of anonymity. During his 2008 presidential campaign, Obama endorsed the concept of a nationwide insurance exchange. Reid Cherlin , a White House spokesman, declined to comment. A bill passed by the Senate calls for each state to set up its own exchange, which House lawmakers say wouldn’t be as effective. “We feel very strongly about the national exchange,” House Democratic Leader Steny Hoyer told reporters. Asked if Obama had commented on the issue, Hoyer said “the president is trying to weigh in and get a bill.” House and Senate Democratic leaders are seeking to merge their versions of the legislation, which calls for the most- sweeping overhaul of U.S. health care in more than four decades. House Speaker Nancy Pelosi and Senate Democratic Leader Harry Reid are scheduled to meet tomorrow at the White House with Obama to discuss the state of negotiations. Capital Gains Tax How to pay for the bill looms as the biggest stumbling block. Among other measures, the leaders are discussing whether to apply a Medicare payroll tax to capital gains income to capture more revenue from high wage earners, said Maryland Representative Chris Van Hollen , a Pelosi adviser. Negotiators are considering expanding a 0.9 percent increase in the Medicare payroll tax contained in the Senate legislation. The Senate measure would apply the tax increase to individuals earning at least $200,000 a year and couples earning $250,000 and more. The Medicare payroll tax increase may be an alternative source of revenue to a surtax on high incomes contained in the House legislation. The so-called millionaire tax on incomes of more than $500,000 for individuals and $1 million for couples is opposed by some Senate Democrats. Pelosi told reporters tonight she hasn’t given up on the millionaire tax because “it’s the best pay-for we’ve had so far.” The Senate bill also contains an excise tax on the most- expensive employer-provided health benefits. That levy is opposed by labor unions, who say it would impose financial burdens on middle-class Americans, including workers who traded wage increases for greater health-care coverage. Meeting With Unions Pelosi met today with labor leaders, including AFL-CIO President Richard Trumka , to discuss unions’ concerns about the proposed excise tax. Obama backs the tax, which would impose a 40 percent levy on health-insurance plans worth more than $8,500 for individuals or $23,000 for families. House Democrats have signaled a willingness to raise the minimum value on the plans that would be subject to taxation. After the meeting with Pelosi, Andrew Stern , president of the Service Employees International Union, told reporters “the House has the right bill.” Asked if Pelosi had indicated how hard she would fight against the so-called Cadillac tax on costly health plans, Stern said labor “made very clear we appreciate everything the speaker has done.” Repealing Antitrust Exemption On the antitrust issue, the House-passed legislation would repeal the limited exemption the insurance industry received when Congress passed the McCarran-Ferguson Act of 1945. The law shields insurance companies from federal antitrust laws as long as they are subject to state regulations. Among those opposed to a repeal of the exemption is Nebraska Senator Ben Nelson , a Democrat who provided the 60th vote that cleared the way for the Senate’s Dec. 24 passage of its health bill. Nelson, a former insurance company executive and state insurance regulator, says a repeal would hurt small insurers. House Rules Committee Chairman Louise Slaughter told reporters that Senate Judiciary Committee Chairman Patrick Leahy is negotiating with Nelson on the exemption to try to get his support. “There is no earthly reason for the insurance companies to be exempt from the antitrust laws,” she said. To contact the reporter on this story: James Rowley in Washington at jarowley@bloomberg.net
Originally posted here:
Obama Backs Plan for National Health Insurance Exchange, House Aide Says
