Daily Tax Update - October 21, 2009

HEALTH CARE REFORM NEGOTIATIONS CONTINUE: House and Senate negotiators continue to work on merging their respective health care reform bills. Last night, Senate Majority Leader Harry Reid described the talks as “extremely rewarding,” but said that significant work remains. Reid said, “We’ve had some very good meetings today. We’re not completely to the point where the two bills are put together. But we’re making a lot of progress. ... I feel very, very good about where we are, and where we’re going.” 

• Meanwhile, House Speaker Nancy Pelosi continues to push to include a “robust” public option provision in the House version. According to Rep. Chris Van Hollen, Pelosi’s approach would reimburse health care providers at 5 percent over the rates Medicare pays. Van Hollen said, “(That) is the goal we want to work toward, but that’s contingent on the caucus support.” Reid said, “I've had a number of meetings in my office dealing with Democrats and Republicans on the public option. I will have made a decision as to what we're going to do with the public option. It's not done yet.”
• Preliminary cost estimates of the House bill from the Congressional Budget Office show that plan would cost about $870 billion. Pelosi said, “The preliminary estimates that were received from the CBO enable us to make our choices knowing that whatever choice we make will reduce the deficit...not only under 10 years, the life of the bill, but over 20 years. Pelosi added, “The numbers favor the robust public option. There's no question that the robust public option always scores better. It has enormous savings.” The House Speaker is hopeful to pass a bill by Thanksgiving.

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