A move by Democrats to include a government-run public option in health care reform proposed by the Senate Finance Committee failed after hours of debate.

John "Jay" Rockefeller

An amendment proposed by Sen. John “Jay” Rockefeller (D-W. Va.) to create a public option in a comprehensive reform bill offered by Sen. Max Baucus (D-Mont.) was defeated by the Senate Finance Committee with 15 senators voting in opposition and 8 in favor today (Sept. 29). All Republicans voted against the amendment, as did four Democrats.

A subsequent amendment by Rockefeller’s Democratic colleague, Sen. Charles Schumer of New York, also failed with 13 votes in opposition and 10 votes in favor. Again, no Republicans voted in favor of the measure.

Baucus, who recently proposed his America’s Health Future Act, said he could not envision a bill with a public action passing the full Senate.

“My goal is to get a bill out of this committee that becomes law….and I don’t see the public option getting 60 votes,” said the committee chairman.
Prior to the vote on his amendment, Rockefeller said the public option “is on the march.”

Rockefeller said he was “absolutely astounded” Republicans on the committee were putting insurance companies before insurance consumers.

“Insurance companies can take care of themselves,” he said. “They always have and they always will …If they want to talk about sliding towards a single payer system, I cannot think of a better way then what they are doing; just saying no.”

Rockefeller’s amendment would have required the secretary of the U.S. Health and Human Services Department to develop a public health insurance option starting in 2013 as one option in a health insurance exchange, according to the text of the amendment.

This new option “participates on a level playing field with private plan choices,” the text said. “Like private plans, it must offer the same benefits, abide by the same insurance market reforms and follow provider network requirements and other consumer protections.”

Schumer’s plan differed in that it did not pre-determine payment rates for providers and called for a “level playing field,” ensuring a government-run plan would not have an advantage over private insurers.

“If state insurance commissioners are doing such a good job, why are costs through the roof? …Why are we hearing so many complaints from constituents on not be treated well by their insurance company? The present system is broken. It is broken on the private side,” Schumer said prior to the vote on his amendment.

He said that with Medicare “going broke” and rising health insurance costs, those Americans with coverage should support the public option in order to continue to receive quality care in the future.

“This will make our system better,” Schumer said.

Rockefeller’s proposal was met with resistance by both Republicans and Democrats on the committee.

Sen. Charles E. Grassley (R-Iowa) said a government-run plan would “ultimately force” private insurance companies out of business and be a step toward a single-payer system in the future, according to press reports.

Republican Sen. Orrin Hatch of Utah echoed the latter sentiment, calling a public option “a Trojan horse” for a single payer system.

Sen. Kent Conrad (D-N.D.) said during the hearing the public option would not garner his favor, mainly due to the fact that reimbursement rates under Rockefeller’s amendment were tied to Medicare, which come in at costs lower than the actual care provided.

Conrad said if his home state of North Dakota relied on Medicare levels, all the hospitals would eventually find themselves in serious financial troubles.