September 23, 2009 / 3:33 PM / 8 years ago

WRAPUP 4-US Senate panel rejects healthcare delay

(For other stories on healthcare reform, click [nN20512341])

* US Senate panel makes little headway on healthcare

* Panel members battle over programs for seniors

* Panel rejects Republican call for delay in final vote

* Lawmakers reject amendment on Humana controversy

(Adds Medicare votes, details)

By John Whitesides and Donna Smith

WASHINGTON, Sept 23 (Reuters) - The Senate Finance Committee rejected a Republican move on Wednesday to delay a final vote on a broad healthcare overhaul as it slowly waded through a crush of amendments on programs for the elderly.

Democrats repeatedly rejected Republican proposals on a series of largely party-line votes through a long day that barely made a dent in hundreds of pending amendments to Chairman Max Baucus' proposal.

Baucus and his fellow Democrats rejected Republican efforts to restore cuts in some areas of Medicare, the government-run insurance program for the elderly, and defeated a politically charged Republican measure sparked by the controversy over a letter from insurer Humana Inc. (HUM.N) to its customers.

Republicans also demanded more information on the bill's budgetary impact and called for the Democratic-controlled panel to slow its deliberations on the reform plan, which Baucus had hoped to bring to a final vote this week.

Democrats said the requests were a tactic to stall President Barack Obama's top domestic priority, a broad overhaul of the $2.5 trillion healthcare industry that would rein in costs, regulate insurers and expand coverage to many of the 46 million uninsured people living in the United States.

The panel, which has a 13-10 Democratic majority, rejected a Republican effort to delay a final committee vote until the bill could be put into legal language and posted on the Internet, and budget experts could estimate its full cost.

Baucus said Senator Jim Bunning's proposal would create at least a two-week delay as the Congressional Budget Office completed its final analysis of the bill.

'WHAT IS THE RUSH?'

"If it takes two more weeks, it takes two more weeks," said Republican Olympia Snowe, the only panel Republican considered a potential supporter of the final bill. "We're talking about trillions of dollars in the final analysis. What is the rush?"

Instead, the panel approved Baucus's pledge to post a preliminary CBO cost estimate on the committee website before a final vote -- a step that makes it highly likely a final vote will spill over to next week.

The Baucus plan is the last of five bills pending in Congress on a healthcare overhaul that has been slowed by intense political skirmishing and criticism from all sides.

In one of the day's sharpest exchanges, the panel rejected a Republican effort to keep the agency that administers Medicare from interfering with contractors that express their views about the healthcare bill to their elderly customers.

The amendment was inspired by the battle over Humana, which contracts with the government to provide insurance through Medicare Advantage, a program that augments the public plan with private insurance.

Humana sent a letter to its participants warning the reform bill would mean "millions of seniors and disabled individuals could lose many of the important benefits and services that make make Medicare Advantage health plans so valuable."

The Centers for Medicare and Medicaid Services ordered Humana to stop and described the mailings as misleading. Health insurers called it a gag order, and committee Republicans said it was a free-speech issue.

Democrats, saying it had little to do with constitutional rights and more to do with corporate responsibility, rejected Senator Jon Kyl's amendment.

The S&P Managed Health Care index .GSPHMO of large health insurers' stock prices fell for a second straight day as several analysts said the amendments to the Baucus bill were generally unfavorable to the industry.

Under the Baucus plan, all U.S. citizens and legal residents would be required to obtain health insurance, with subsidies offered on a sliding scale to help people buy it. The plan would create state-based exchanges where individuals and small businesses could shop for insurance.

It does not include a new government-run insurance program -- the "public option" -- that would compete with private insurers. That is included in the other four healthcare bills in Congress and is backed by Obama and liberal Democrats.

The Baucus plan calls for the creation of nonprofit cooperatives as a way to ensure competition among insurers. Membership in the cooperatives would be offered through state insurance exchanges where small businesses and individuals could shop for health coverage.

House of Representative Speaker Nancy Pelosi has vowed a public option, strongly opposed by the insurance industry, will be included in a bill passed by the Democratic-controlled House. The insurance industry and some drug makers have lobbied against the healthcare overhaul.

Senate Democratic Leader Harry Reid said Congress should stand up to them. "We have got to show the American people that we can overcome the power of the insurance industry and the pharmaceutical industry. That's what it's all about," he said. (Editing by David Alexander and Will Dunham)

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