Health Care Plan Takes Shape as Congressional Democrats Pledge To Implement Legislative Action

Senator Max Baucus (D-Mont.) chairman of the Senate Finance Committee, is responsible for driving health-care legislation. Baucus has put together a Bipartisan Deal That Will Seek the Implementation of a $900B Health-Care Program.

Citing that the majority of the necessary legislative work for health care has already been accomplished, Senate Majority Leader Harry Reid of Nevada was one of several Democratic Congressional leaders to make their opinions known to President Obama. Speaking on behalf of Congressional Democrats, Speaker of the House Pelosi is convinced she's got the votes to deliver the sweeping overhaul favored by Obama. Included among  key Senate Democrats to speak with the president was Senator Max Baucus of Montana who has crafted a version of health care compromise legislation that he is ready to push through the Senate.

“We are not going to dally. We are not going to dawdle,” Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee, said after a meeting with five fellow architects of his compromise legislation.

“Time is running out very quickly,” Mr. Baucus added. A key to Senator Baucus' compromise plans success Republican Senator Olympia J. Snowe of Maine, has been quick to offer some positive assessments of the proposal crafted by Senator Baucus but she has also added that she believes that there are some adjustments still need to be made.

White House officials have been circulating the scenario that President Obama plans to discuss more details that he hopes will appear in a final version of health care when he speaks before Congress Wednesday night. In addition, Obama will use the speech to the American people to explain the need for an overhaul of the nation's health care system.

"The main audience is the American people and their stake in this," said Rahm Emanuel, the White House chief of staff.

White House officials believe that by making his address before a joint session of Congress, President Obama will be using a venue that will allow him to have the time necessary to achieve a greater focus on the issues involved in creating health care reform for the American people.

“This is a topic that probably takes some time to walk through,” Robert Gibbs, the White House press secretary, said. One part of the speech, Mr. Gibbs said, would be devoted to “understanding what the public option is and what the public option isn’t.” Republicans said Democrats have misread the true opinions of Americans who used Town Hall meetings to question many parts of the Obama/Democratic plan. “The American people are asking us to start over,” said Senator Mitch McConnell of Kentucky, the Republican leader. “They want reforms, but they want the right reforms.”

The Baucus plan that has emerged from conference committee, incorporates a substantial number of adjustments to the way private insurance and Medicare are currently operated.One significant change has levied fees against the drug industry to begin making payments in 2010 that would begin at a cost of $2.3 billion a year and would be assessed according to each company's share in the medical marketplace.

Senator Baucus has also raised the discount rate required of companies in the drug sector that deal directly with Medicaid recipients. The Baucus legislation increases patients rebates from 15.1 percent to 23.1 percent. In the instance of generic drugs rebates would rise to recipients from 11 percent to 13 percent.

The Baucus bill requires that every American would be mandated to have health insurance coverage. Keeping in mind that the poverty level is $10,830 for an individual and $22,050 for a family of four; penalties would be assessed on a sliding scale that would require a penalty of  $750 a year per person for those who earned from 100 percent to 300 percent above the poverty level, while taxpayers with incomes greater than 300 percent above the poverty level would be charged a fine of $950 per person. For families in the100 percent to 300 percent above the poverty level bracket the charge for failing to have coverage would be a maximum penalty of $1,500 for a family and for families above the 300 percent bracket, a maximum penalty of $3,800 for a family would apply.

The New York Times reporters; Carl Hulse and Robert Pear point out that: "Employers would not be required to offer insurance coverage to their employees. But companies that did not would have to pay a fee for each low-income employee who received a subsidy, in the form of a tax credit, for coverage bought through a health insurance exchange. The maximum assessment on employers would be equal to $400 multiplied by the total number of employees."

Several important points need to be considered as Obama and the Congressional Democrats ready for their push to achieve health care reform. Among the points to include in any analysis of the state of health care reform are as follows: the many cantankerous at times Town Hall meetings did very little to change public support for reform or fragment Democratic resolve; insurance industry lobbyist remain at the negotiating table because their have failed to turn the public against health care restructuring; the Democrats remain committed as a party despite seeming public disagreements; health care legislation has passed most of its Congressional committee hurdles and is preparing to make it's way to the floor for voting to begin; the markups include protections from insurance companies from barring coverage for pre-existing medical conditions; lifetime caps on coverage have been eliminated and individuals cannot be dropped when they become ill; in the Senate Obama seems close to securing 60 votes for passage.

With this in mind there are still several obstacles facing Obama; the legislative package is extremely complex and large; Republicans and their business allies will do everything possible to corrupt the legislative process; and complaints raised among loud voices in the public arena to stop government from expanding are ever present.

A positive sign for the Democrats is that the health industry has stayed involved in the negotiating process.

An even more important reality concerning revamping the health care industry is that the public, although many have raised concerns about specifics of the plan, remain prepared to contribute their support to help build the broad coalition needed to make health care reform a reality.

Federal and New York State Officials Continue to Investigate $1 Million Bonuses at A.I.G.

Andrew M. Cuomo, Attorney General of New York State, has, according to The New York Times, announced that:"Seventy-three employees were paid more than $1 million in the latest bonuses at the insurance giant American International Group."

Cuomo disclosed information in a written communication to Congressman Barney Frank, chairman of the House Committee on Financial Services regarding "the $165 million in bonuses that A.I.G. paid out last week."

Mr. Cuomo wrote “A.I.G. made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing a taxpayer bailout,”“A.I.G. made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing a taxpayer bailout.” Cuomo observed that: “Something is deeply wrong with this outcome.”

"Mr. Cuomo did not name the bonus recipients, but the numbers are eye-popping, given A.I.G.’s fragile state. The highest bonus was $6.4 million, and six other employees received more than $4 million, according to Mr. Cuomo. Fifteen other people received bonuses of more than $2 million, and 51 people received bonuses between $1 million and $2 million, Mr. Cuomo said. Eleven of those who received “retention” bonuses of $1 million or more are no longer working at A.I.G., including one who received $4.6 million, he said.

The New York Times explains that: "A.I.G., which is now 80 percent owned by the government, paid out the so-called retention payments, saying the bonuses were needed to persuade workers to stick around in its financial products unit. But the payouts have caused a public furor, and the White House said on Monday that the Treasury would write new requirements about the bonus money in the next $30 billion that it provides to the insurance giant. Already, the government has given A.I.G. $170 billion."

By Tuesday of this week House and Senate members as well as administration officials were "called on A.I.G. to rescind the bonuses and warned that they would introduce legislation to recoup the money, including the threat of a tax on A.I.G. employees."

"Senate Democrats will seek to recoup $165 million in bonuses paid to executives of the troubled insurance giant American International Group through a narrowly focused tax, unless the money is returned voluntarily, party leaders announced this morning."

"Harry Reid, Senate Majority Leader announced that Max Baucus, Finance Committee Chairman are scheduled to "unveil a proposal by tomorrow that would tax up to 98 percent of the bonus money. "That will certainly send a message to the people at AIG and all others who try to benefit from the hardships the American people face," Reid said.

On the House side Congressmen Steve Isreal and Tim Ryan "introduced the "Bailout Bonus Tax Bracket Act" to create a 100 percent tax on bonuses over $100,000 that are distributed to employees of financial firms receiving federal bailout funds. Currently, the IRS withholds 25 percent from bonuses less than $1 million and 35 percent for bonuses more than $1 million dollars. The Israel-Ryan proposal would apply to all bonuses to government-supported firms such as AIG that have been given since Jan. 1.

Mr. Frank added his opinion that regarding A.I.G. the moment had arrived "to exercise our ownership rights.”

Frank spoke out against the A.I.G. Bonus recipients to say “I think we should be suing to get the bonuses back as the owner.”

Chairman Frank attacked the necessity for paying out "retention bonuses" in a badly preforming economy by claiming that: "“It is hardly a tough market for hiring people with financial expertise.”

Although long planned, "the AIG bonuses have sparked bipartisan outrage on Capitol Hill and place in serious jeopardy the prospect of further aid to the banking sector. AIG took huge risks with its investments in credit default swaps, an unregulated market that collapsed in the credit crisis and, it received more than $170 billion in taxpayer bailout money in the past year as a result of the financial meltdown. The company has received more bailout money than any other single firm, and is now 80 percent government-owned."

"The bonuses, guaranteed through employment contracts that had been made public to the government earlier and paid out on Friday, were offered as a way to lure or keep top talent to help sort out the financial situation at AIG, officials there said. But when news of the payments surfaced in recent days, lawmakers turned to the Obama administration, demanding that the U.S. Treasury attempt to claw back some of the money."

"Despite serious efforts to stop the bonuses, the administration apparently was unable to stop the payments. Yesterday, President Obama expressed his unhappiness with the bonuses and directed government lawyers to review the company's contracts to see whether provisions guaranteeing the bonuses can be overturned. The administration also last week persuaded the company to restructure some of the payments, and the top seven AIG executives had earlier agreed to forego their bonuses through this year."

New York State Attorney General Cuomo, according to New York Times reports: "subpoenaed A.I.G. on Monday for the names of the people who shared in the new bonus pool." Cuomo went on to say "the fact that 11 people who received some of the money were no longer at A.I.G., raised questions about whether the bonuses were truly for retention purposes."

The New York Times speculated that: "Mr. Cuomo may be able to use a state law about fraudulent conveyance to force A.I.G. to rescind the bonuses. Mr. Cuomo would have to show that A.I.G. was undercapitalized when it paid the bonuses and that the people who received the bonuses did not earn them."

During an interview this past Monday, Mr. Cuomo said: “I understand they (A.I.G.) have contracts,... That’s not necessarily determinant because a lot has happened since that contract was signed.”

The New York Times concludes by explaining that: "A.I.G. altered some of its practices last fall after discussions with Mr. Cuomo. The company canceled about $160 million in planned expenses for conferences as well as $600 million in payouts in deferred compensation plans after Mr. Cuomo threatened to sue the company."

Majority Leader Reid stated "We as a Congress are not defenseless,... We can also do things."

Senator Charles Schumer was summarized by The Washington Post as having said: "AIG executives would be given an opportunity to pay back the bonus money voluntarily, before being hit with the tax" and was directly quoted by The Washington Post "If you don't return it on your own (referring to AIG oficials), we will do it for you," Schumer said.

The Washington Post explained that: Senator Charles Grassley, the ranking member of the Senate Finance Committee has intimated that: "The tax idea has quickly gained momentum as the quickest and most efficient method for capturing the bonus money." Grassley stated to Max Baucus: "I want to back you up on looking into that and doing what we can to make sure these things don't happen in the future."

Senator Christopher Dodd, chairman of the Senate Banking Committee, has proposed "to write a tax provision in a way that is specifically targeted to that audience."

The Washington Post has speculated that Dodd's action "to write a tax provision in a way that is specifically targeted to that audience:"to write a tax provision in a way that is specifically targeted to that audience."

When speaking to reporters today, Steny Hoyer, trying to arouse public sentiment against AIG executives proclaimed: "Have they no shame, have they no sense of responsibility to American taxpayers? . . . Have they no sense of decency?"

Republican Immaturity and Some Other Thoughts on the Passage of the Economic Stimulus Bill

As you can plainly see; an individual, or a group of individuals, thought that they needed to include their whiny and uninsightful comments into a large number of YouTube videos. So now some overworked YouTube workers will have to fix the mess that the children made: On the count of three; everybody laugh at the immature rightwingnut pranksters dedication to their own inanity! 1, 2, 3! Ha, Ha, Ha.

The children should be bored by now and they've probably gone off some where safe to start their incessant whining

So it's finally time for the grownups to take some time and seriously discuss a number of political issues surrounding the final passage of the Conference stimulus bill.

The real point is to listen to the remarks of Speaker Pelosi as she summarzed the importance of the passage of the stimulus bill for the American people.

The The LA Times provided a summary of the almost $789-billion committee economic stimulus bill shows that interest will add over $300 billion dollars over a 10 year period. For the purposes of this summary the bill will be divided into two parts; spending and taxes

First a breakdown on spending:

67 billion dollars - Aid to poor and unemployed

8.7 billion dollars - Infrastructure repair and construction

141.3 billion - Healthcare

8.8 billion - state block grants

41.2 billion - Energy

87.3 billion - Education

9.5 million - housing

Finally a breakdown on taxes:

116 billion dollars - New Tax Credit

70 billion dollars - Alternative minimum tax

14 billion - Expanded College Credit

20 billion - Renewable-energy incentives

6.6 billion - Home-buyer credit

1.7 billion - Auto sales

With the passage of the stimulus bill the next question is ow soon, and how much in benefits will Americans receive once the bill is enacted into law. The bill is so large and ambitious, that its effects could be felt in every sector of American society.

The economic stimulus is designed to provide a time-certain release of funds into the American economy. Most Americans will see an immediate effect as tax cuts take effect. On the other hand, money directed at the fundamental inquiries of science and the development and implementation of a green economy could take years,if not decades.

The Congressional Budget Office (CBO) predicts the money released into the economy will have its most substantial benefit on America's GDP by the end of 2009, and then decreasing in 2010 until its overall influence disappears by 2013. The CBO believes that the legislation's greatest effect will be to decrease unemployment as more jobs are created. The CBO estimates that 3.6 million jobs will be created by 2010, with an additional 11.6 million jobs created by 2014 to 2015.

The LA Times predicts: "Workers who make less than $75,000 a year (or married couples who make $150,000 or less) will receive $400 tax credits in 2009 and 2010. Those who make more will receive reduced amounts. But instead of mailing out checks, as the Bush administration did with its stimulus plan last year, the government will withhold a little less -- leaving average workers with perhaps $8 extra per week."

The Times explains that: "Those out of work will see unemployment checks immediately increase by $25, up from the average benefit of $200 a week. And eligibility for benefits will last 46 weeks, up from 26 weeks. That money, too, will go to people who are most likely to spend it quickly."

"First-time home buyers" The Times predicts, "can also reap immediate benefits. In lieu of government cash, they can claim an $8,000 tax credit if they buy a home before the end of year."

In addition: "... those who buy a new car by the end of the year will be able to deduct the cost of the sales tax ... And many parents of college students will be able to deduct more of the cost of tuition on next year's tax return (as long as they are paying it, of course)."

"The federal government," the Times explains: will deliver $54 billion in aid to cash-strapped states, with some of the money available to prop up state budgets, help maintain services and keep employees on the job. A large chunk of funds will be available for upgrading school buildings.Other money could help keep teachers and day-care workers on the payroll. That alone could save or create hundreds of thousands of jobs nationwide."

Additionally, The Times reports: "Counties, cities and municipalities that receive a chunk of stimulus money are expected to green-light so-called shovel-ready projects, using workers and equipment that otherwise might sit idle. The U.S. Conference of Mayors has projected that such projects could yield 1.6 million jobs by the end of next year." And, The Times continues: "A provision to spend $10 billion on weatherization and other energy-efficiency upgrades for homes and federal buildings is aimed at benefiting the economy in the midterm. Longer-term, the legislation calls for $20 billion to upgrade the nation's electric grid and $8 billion for high-speed rail projects. There are also large increases in research and development, including $1 billion for NASA and $3 billion for the National Science Foundation. The National Institutes of Health is a major beneficiary; it will have $10 billion flowing in for biomedical research."

While Democrats wer busy haping the bill for final passage The GOP whined and complained and tried every obsructive tactice in their political playbook. But in the end the Democrats passed the bill they intended to pass all along.