Health care overhaul survives first test in Senate

WASHINGTON -- The overhaul of the nation's health care survived its first test in the Senate last week as senators voted to stand behind one of its major underpinnings.

Senators voted 58-42 to move forward with about $450 billion in cuts to projected Medicare spending over the next 10 years. The savings would help provide health coverage for people who are uninsured, one of the goals of the sweeping legislation.

The bill envisions reductions in payments to private Medicare plans, and some hospitals, hospices and other providers. The vote killed an amendment by Sen. John McCain, R-Ariz., who sought to restore the cuts.

Republicans argued that Medicare, which serves the elderly, is already on shaky ground and was being "raided" to finance President Barack Obama's plan to subsidize coverage for the uninsured, many of whom are younger and healthier.

"Our bill does nothing to reduce guaranteed Medicare benefits," responded Sen. Max Baucus, D-Mont., and chairman of the Senate Finance Committee.

Democrats accused GOP senators of trying to scare the elderly. They noted the AARP supported the spending cuts.

Sen. Harry Reid, D-Nev., voted for the reduction in projected Medicare spending. Sen. John Ensign, R-Nev., voted against the reductions.

WOMEN'S HEALTH CARE SUPPORTED

The Senate voted to boost insurance coverage for mammograms and other health services to women.

Senators voted 61-39 for an amendment by Sen. Barbara Mikulski, D-Md. It would require insurers to eliminate co-pays and provide full coverage for cervical cancer screenings and other preventive services.

Mikulski said the benefits in her amendment were similar to those offered to federal workers. They would cost $940 million, a sum she said would be offset by other savings in the overall bill.

Reid voted for the amendment. Ensign voted against it.

Some Republicans could not support such a sweeping effort. They proposed an alternative that would have urged insurance companies to consult with medical experts before deciding what preventive services to cover.

Democrats said the GOP alternative was a step backward as it did not guarantee coverage nor did it rule out co-pays for women's care.

The Republican amendment was killed, 59-41. Ensign voted for it while Reid voted against it.

'DEATH TAX' RATE SET IN HOUSE BILL

The House voted to make permanent the current 45 percent inheritance tax on estates larger than $3.5 million, reviving debate over a perennially controversial source of government revenue.

Under a law that was passed in 2001, the estate tax was gradually reduced through the decade and would have expired next year, but only for one year. It would have reappeared in 2011 at a higher 55 percent rate.

Sponsor Rep. Earl Pomeroy, D-N.D., said his bill was a compromise to settle the issue "once and for all," and his supporters said it would provide certainty for estate planners.

Pomeroy said the bill would exempt 99.75 percent of estates.

Still, conservatives argued the so-called "death tax" should be repealed outright, while liberals said the rate in Pomeroy's bill was too low.

Reps. Shelley Berkley and Dina Titus, both D-Nev., voted for the bill. Rep. Dean Heller, R-Nev., voted against it.

A Republican motion offered by Heller that sought to permanently repeal the tax was defeated on a procedural vote, 234-186.

Heller voted for the motion while Berkley and Titus voted against it.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault @stephensmedia.com or 202-783-1760.