Thursday, March 18, 2010

House to Vote Sunday Afternoon on Senate Health Reform Bill and Reconciliation

The House early Thursday afternoon unveiled a 153-page reconciliation package estimated to reduce the deficit by $138 billion in the first decade and $1.2 trillion in the second decade, a feat that has helped attract some Blue Dog “no” votes before an expected health reform vote after 2 PM on Sunday. The Reconciliation Act of 2010 (H.R. 4872), which costs $940 billion in the first 10 years (see CBO score), is very similar to President Obama's February 24th proposal.

Of the $940 billion, $434 billion over 10 years is new federal Medicaid money to cover Medicaid expansion, including newly eligible beneficiaries. In addition, the overall total includes $20 billion over 10 years in new state help. These additional Medicaid dollars do not include long term services dollars or disproportionate share hospital (DSH) payments. The cost of expanding coverage is shared between Medicaid and the new insurance exchange. For most states, only 4% of this Medicaid expansion will be state dollars, the rest will be federal Medicaid dollars for the next 10 years.

House and Senate staffers told ANCOR staff that if this bill does not pass, states will not see new money like this again.

The Senate bill and the reconciliation package will be combined, so the House only has to take one vote; however, Speaker Pelosi will not proceed on a vote until the Democrats reach 216 “yeas.” The Senate will then have to vote on the reconciliation package, which is likely to occur on Tuesday.

Related Summaries:
House Democratic Summary of Reconciliation Package
Health Reform Implementation Timelines
House Energy and Commerce Committee Benefits of Health Reform, District by District Impact