Obamacare Moves Forward

A bill that would reshape the health care system, affecting every business in the U.S., is headed toward a historic debate in Congress.

Despite a last-minute blitz by the insurance industry, Senate Democrats passed an $829 billion reform bill out of committee that they actually can call bipartisan on a 14-9 vote.

If there is one surprise today, it's that Maine Republican Olympia Snowe supported the measure, which is considered the blueprint for President Obama's health reform plan. She was the only Republican to join 13 Democrats. Just a month ago, it looked like Obamacare was dead because many Democrats weren't on board.

The bill will raise billions in taxes from health care companies and other businesses and require individuals to buy insurance. It will require employers to cover their workers or pay a fee. Insurers oppose the plan, saying it taxes them too much, and they vow to pass costs on to consumers. But the bill has strong backing from some major industry players, such as the drug companies.

"We recognize that a lot of work remains in both chambers, but we’re still convinced that the Senate Finance Committee’s bipartisan bill is the best blueprint for comprehensive health care reform, and we are going to do our part to try and get a bill on the president’s desk this year,” Billy Tauzin, CEO of drug-industry trade group PhRMA says in a statement.

There's a long way to go. The bill will have to be merged with another Senate measure before the full Senate can vote on it. And then there's the little matter of three more bills floating around the House. But one thing can be said: Obama's health reform plan has much more momentum than Bill Clinton's 1994 effort.

"I don't think there is any interest more ideologically charged in American politics," says Kenneth Bowler, executive vice president of Dow Lohnes Government Strategies and a lobbyist and longtime Washington insider.

Bowler notes that Medicare was passed by Congress in the mid-60s but only after decades of debate. In fact, he notes major health reform was passed by Congress only two times since: the State Children's Health Insurance Program passed in 1997 and the expansion of drug benefits to Medicare patients passed in 2003.

Clinton was never able to get the kind of backing from industry and wide support from members of Congress that Obama gathered. Despite strong opposition from the insurance companies, Obama's plan is getting the green light from several key business and health industry groups. He allowed Senate Finance Committee Chairman Max Baucus to shape the bill rather than shove through his own plan.

Health care is a hard issue to pass. People who have it don't want anybody to mess with their plans. So, it's not an issue that gets a groundswell of public support. It's a lengthy, terribly complex issue with many moving parts that has to go through several Congressional committees.

"There are multiple points where it can be stopped," says Bowler. "The big difference is this bill has passed through so many more passage points."