The ITUP Spotlight on Health Reform

...won't actually be a bill but rather a collection of compromises to bridge the House and Senate versions in anticipation of the February 25th Summit. The following ideas are expected to be included, using the not-officially-confirmed reconciliation process:

-Closing the Medicare doughnut hole
-A fix to the Cadillac tax (looking something like the version agreed upon with labor)
-Exchange structure (state or national?) and subsidy level (more generous in House version)
-Removal of Ben Nelson's special deal

Hot button issues like immigrant coverage, abortion, and the phoenix-like public option are not likely to be in Obama's 'bill,' though it may include additional conservative-supported provisions such as tort reform and interstate sale of insurance.

In other news, 2009 saw the largest single-year increase in Medicaid enrollment with 3.3 million people added to the ranks (7.5% increase, totaling nearly 47 million Americans), largely as a result of the economic downturn. Is this a good thing? For individuals and families who lose their job and employment-based insurance, absolutely. The program is extremely useful in acting as a counter-cyclic safety net when the economy goes south. For states (who partially fund the program), this is a not so good thing as revenue dips during such times and states do not have the luxury to deficit-spend leaving them cash-strapped. Additionally, millions who lose their job but do not qualify for Medicaid go uninsured adding unneeded costs to the system. Read the full KFF report here.

As with the Anthem example, this occurrence is tangible proof of the benefits of reform; states will receive many financial incentives through expansion of the Medicaid program, and the combination of the mandate/premium subsidies/consumer protections will provide a stable market where individuals have the security of health coverage no matter the state of the economy.