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Health care reform, reconciliation finished

WASHINGTON -- Congress last week put the final piece in place on legislation to overhaul the health care system.

The House and Senate completed a follow-up bill that made alterations to the health care reform that was signed into law by President Barack Obama on Tuesday .

The revisions had been negotiated by House and Senate Democrats as part of the overall health reform deal. They were passed under the "reconciliation" procedure that was put in place to overcome a threatened filibuster by Republicans.

Under reconciliation sponsors needed only a simple majority for Senate passage, and not the 60 votes that would be needed otherwise.

The follow-up bill increased the prescription drug benefits for senior citizens enrolled in Medicare. It also delayed a tax on high-value "Cadillac" insurance plans until 2018, an agreement to satisfy lawmakers worried about the tax falling on middle-class families.

The bill also killed the infamous "Cornhusker Kickback," an added Medicaid benefit that was given to Nebraskans under the original bill but that provoked a firestorm of controversy.

Attached to the health bill was legislation to federalize student loans and increase financial aid to low-income students.

Democrats said the follow-up bill made health care reform "even better." Republicans predicted it would add even more cost to what they said would be budget-busting health reform.

The Senate passed the follow-up bill 56-43. Sen. Harry Reid, D-Nev., voted for it while Sen. John Ensign, R-Nev., voted against it.

The House vote for the bill was 220-207. Reps. Shelley Berkley and Dina Titus, both D-Nev., voted for the bill. Rep. Dean Heller, R-Nev., voted against it.

Disaster aid bill passed

Voting 239-175, the House passed a $5.7 billion spending bill, with most of the funding earmarked for disaster aid.

The bill directs $5.1 billion to the Federal Emergency Management Agency for ongoing recovery programs from Hurricane Katrina and flooding in the Midwest.

Some $600 million would be sent to states to create summer jobs for teen-agers and young adults. Another $60 million was targeted for small business loan assistance.

Bill opponents criticized the additional federal spending at a time of deep budget deficits.

Berkley and Titus voted for the bill. Heller voted against it.

Development tax breaks OK'd

The House passed a $16.8 billion bill that extends municipal bond tax incentives for states and local governments to finance economic development.

The cost of the tax incentives would be offset in part by increasing taxes on U.S. subsidies of foreign corporations.

Democrats called the bill part of their "jobs agenda."

Republicans criticized the business tax increase, and also the bill's strategy to provide tax breaks to local and state governments instead of the private sector.

The vote was 246-178. Berkley and Titus voted for the bill. Heller voted against it.

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

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