An amendment to cap tax-deductible salaries for health insurance executives at $400,000, rather than the current limit of $1 million, failed in the Senate, leading its Democratic sponsor to claim Republicans are choosing to support insurers over seniors.

Sen. Blanche Lincoln (D-Ark.) proposed the amendment this weekend as part of continuing debate over the Patient Protection and Affordable Care Act, the Senate’s comprehensive proposal for reforming the nation’s health care system.

Lincoln proposed the change to cut taxpayer subsidies used to fund the salaries of health insurance executives and redirect that money to the Medicare Trust Fund. The measure failed by a vote of 56-42, four votes shy of the number needed for passage.

Following the vote, Lincoln said it was clear that Senate Republicans were choosing tax breaks for health insurance companies over America’s senior citizens.

“The choice today was simple – either support America’s seniors by putting revenues right into the Medicare Trust Fund, or allow health insurance companies to retain their generous tax shelter for the multimillion-dollar compensation packages of their executives,” Lincoln said in a statement. “Health insurance reform promises to bring millions of new customers to insurance companies and dramatically improve their bottom line. I believe it is fair to ask these companies to give up a long-standing taxpayer subsidy that allows them to write off up to $1 million in executive compensation.”

Lincoln’s failed amendment highlighted a day of continued debate for the Senate on a rare Saturday (Dec. 5) session, as the Congressional body attempts to finalize their bill before the holiday break. President Barack Obama has said he would like a final bill – approved by both the House and Senate – on his desk by the end of the year.

Public option obstacle remains

In what the president called a “pep talk,” he met with Senate Democrats on Sunday (Dec. 6) to resolve disputes on the two major issues stalling progress: abortion and a proposed government-run insurance program.

Appearing on Fox News Sunday, Sen. Dick Durbin (D-Ill.) said the Senate is “coming to closure on these issues,” with consensus on addressing abortion in the bill likely today (Dec. 8). Regarding the public option, Durbin said there are alternative being discussed to the version included in the bill, allowing states to opt-out of the program through legislation.

Also appearing on the program, Sen. John Cornyn (R-Texas) said it was “breathtaking…the disdain with which this administration and Senate Democrats have for the private sector.

“If you eliminate the private sector when it comes to health care provision, you’re left with only the government, which many fear is the reason why this public option is, as Joe Lieberman said, a Trojan horse for a single-payer system ultimately,” he said. “This shouldn’t be about demonizing the private sector and, you know, glorifying the government sector. This ought to be about, you know, how do we bring down costs, how do we lower premiums, how do we keep taxes low, and how do we avoid these cuts to Medicare.”