Senate Finance Committee Chairman Max Baucus (D-MT) has introduced the Chairman's Mark (committee recommendations to be considered in marking up legislation) entitled "America's Healthy Future Act". Senator Baucus is part of a group of five other Democrat and Republican Committee members who have been working to produce bipartisan health care legislation, but he appears to have introduced this bill alone today.

As yet the plan does not have Republican support, and Democrats including Senator Jay Rockefeller (D-WV) have been vocal in opposition. However, in remarks today, Baucus expressed confidence bipartisan support will be forthcoming, and that the bill meets all of President Obama's criteria for health care reform. The price tag of the plan rounds out to $856 billion.

The bill does not contain the much-debated public insurance option, but does include a health insurance exchange and health care co-ops, as well as a requirement that individuals must obtain insurance. Several reforms to insurance industry practices are included, and eligibility for Medicaid would be extended. The Committee voting process on the bill begins next week.

While not inclusive of the 223-page Chairman's Mark, some of the highlights include the following:

Insurance Reforms

--Under the provisions in the Chairman's Mark, issuers in the individual insurance market could vary premiums based only on the following characteristics: tobacco use, age, and family composition. Variation in rating would be allowed between geographic areas, but not differ within a geographic area. Within a year of enactment of the legislation, uninsured persons previously denied health care coverage due to a pre-existing condition can enroll in a high-risk pool.

--Individuals and groups who wish to renew coverage in an existing policy can do so, and plans can continue to offer coverage in a "grandfathered policy," but only to those who were currently enrolled, dependents, or for employers, to new employees and their dependents.

--States would be required to establish an exchange for the individual market and a Small Business Health Options Program. Only legal U.S. residents would be able to obtain insurance through the state exchanges. State based internet portals for exchanges would be created that assist consumers on purchasing plans to all options available in their zip code. The web portal would offer applications, marketing materials and customer support, as well as assistance in determining eligibility for health care affordability tax credits.

More Industry Headlines