Victory for Obama: Healthcare Bill passed

After approving the bill,the House adopted a package of changes to it by a vote of 220 to 211. That package now goes to the Senate for action as soon as this week. It would be the final step in a bitter legislative fight that has highlighted the nation’s deep partisan and ideological divisions.

Outside the Capitol,protesters,urged on by House Republicans,chanted “Kill the bill” and waved yellow flags declaring “Don’t Tread on Me”.

Inside,Democrats hailed the votes as a historic advance in social justice,comparable to the establishment of Medicare and Social Security. They said the Bill would also put pressure on rising healthcare costs and rein in federal budget deficits.

“This is the Civil Rights Act of the 21st century,” said Representative James E Clyburn of South Carolina,the No. 3 Democrat in the House.

Obama celebrated the House action at the White House. “We pushed back on the undue influence of special interests,” Obama said. “We didn’t give in to mistrust or to cynicism or to fear. Instead,we proved that we are still a people capable of doing big things.”

“This isn’t radical reform,” the President added,“but it is a major reform.”

After a year of combat ,House Democrats and the White House clinched their victory only hours before the voting started on Sunday. They agreed to a deal with opponents of abortion rights within their party to reiterate in an executive order that federal money provided by the bill could not be used for abortions,securing for Democrats the final handful of votes they needed to assure passage.

Speaker Nancy Pelosi said: “After a year of debate and hearing the calls of millions of Americans,we have come to this historic moment. Today we have the opportunity to complete the great unfinished business of our society and pass health insurance reform for all Americans that is a right and not a privilege.”

The House Republican leader,Representative John A Boehner of Ohio,said lawmakers were defying the wishes of their constituents. “The American people are angry,” Boehner said. “This body moves forward against their will. Shame on us.”

Obama,in his remarks shortly before midnight in the East Room,said: “It’s time to bring this debate to a close and begin the hard work of implementing this reform properly on behalf of the American people.” NYT

WHAT IT MEANS TO OBAMA

How big a victory is this?

The health passage was a huge victory after a year of intense effort in which Obama put his own reputation on the line,often against the counsel of close advisers and members of his own party who wanted healthcare to take a back seat to efforts to improve the economy. The bill’s failure would have left the Democrats weakened and divided.

Will it help Obama achieve his other goals?

Maybe. Experts had said failure would cripple Obama’s presidency,and some Democrats said they were swayed by concern that its failure could leave Obama unable to push through any major legislation. The healthcare victory provides a resounding denunciation to critics who had termed him a ditherer with little to show for 14 months in office.

Will Obama’s plan keep healthcare costs from destroying US economy?

Some economists,at least,say yes. The $2.5 trillion US healthcare industry accounts for one-sixth of the country’s gross domestic product,and a centerpiece of Obama’s argument for his overhaul was that rising costs must be controlled because they risked destroying the economy. Republicans contended that Obama’s plan was too broad and expensive. The Democrats’ case for the overhaul was boosted on Thursday when the Congressional Budget Office estimated that it would cost $940 billion over 10 years but cut the deficit by $138 billion over the same period. Many economists say the plan is at least an important step in the right direction toward controlling costs.

Will it help Democrats in the mid-term elections in November?

Healthcare’s influence on the election in November will depend on whether it works and how quickly voters start to feel an impact. If Americans feel they are benefiting by Election Day,when more than a third of the Senate and every seat in the House will be up for grabs,it will be hard for Republicans to convince the public to vote against those who backed it. If voters do not feel benefits,the Democrats will have a harder time,especially if joblessness is still near 10 per cent. Reuters

OVERHAUL WHAT TO EXPECT

Insurance companies will be barred from dropping people from coverage when they get sick. Lifetime coverage limits will be eliminated and annual limits are to be restricted.

Insurers will be barred from excluding children for coverage due to pre-existing conditions.

Young adults will be able to stay on their parents’ health plans until the age of 26.

Uninsured adults with a pre-existing conditions will be able to obtain health coverage through new programme that expires once new insurance exchanges begin operating in 2014.

A temporary reinsurance programme is created to help companies maintain health coverage for early retirees between 55 and 64.

Medicare drug beneficiaries who fall into the “doughnut hole” coverage gap will get a $250 rebate.

A tax credit becomes available for some small businesses to help provide coverage for workers.

In 2011, Medicare provides 10 per cent bonus payments to primary care physicians and general surgeons.

Medicare beneficiaries will be able to get a free annual wellness visit and personalised prevention plan service. New health plans will be required to cover preventive services with little or no cost to patients.

A new programme under Medicaid plan for the poor goes into effect in October 2011 that allows states to offer home and community based care for the disabled. Reuters