Daschle Urges Bush to ‘Compromise More’ on Stimulus Bill

President Bush must "compromise more" to move an economic stimulus bill through Congress next year, Senate Majority Leader Tom Daschle (D-S.D.) said on Dec. 30, the Philadelphia Inquirer reports. On NBC's " Meet the Press," Daschle said, "We didn't see a lot of give on the part of the administration ... until the very end" (Holland, AP/Philadelphia Inquirer, 12/31). On Dec. 19, one day before the holiday recess, the House passed an economic stimulus bill, proposed by House Republican leaders, that would have provided an individual tax credit to cover 60% of the cost of private health insurance for unemployed workers. The legislation, a revised version of a bill passed by the House in October, also includes about $33 billion to extend unemployment benefits and help unemployed workers purchase health insurance, up from $13 billion in a bill approved in October. Bush supports the legislation, but Democrats have said that the tax credit provision would "leave unemployed workers little leverage" with insurers, and have "demanded subsidies be delivered" through employer-sponsored health plans. They also said that the plan would represent a "step toward dismantling the system of employer-provided health insurance" (Kaiser Daily Health Policy Report, 12/20). Daschle declined to schedule a Senate vote on the bill before the holiday recess (Kaiser Daily Health Policy Report, 12/21). He said on Dec. 30 that "a bad economic stimulus bill is worse than no bill at all" (AP/Philadelphia Inquirer, 12/31). Democrats have proposed a 75% subsidy to help unemployed workers purchase health coverage through COBRA and additional funds to allow states to extend Medicaid coverage to unemployed workers who do not qualify for the program. COBRA, the 1986 Consolidated Omnibus Budget Reconciliation Act, allows unemployed workers to retain health coverage under their former employers' insurance plans by paying 102% of the premiums (Kaiser Daily Health Policy Report, 12/14).

Bush 'Disappointed'
During his weekly radio address on Dec. 29, a "disappointed" Bush criticized Daschle's decision not to schedule a vote on the revised House bill in the Senate (AP/Philadelphia Inquirer, 12/31). However, Bush has "ruled out calling Congress back early" from the holiday recess to pass an economic stimulus bill, adding that legislation "may not be needed because the economy is showing signs of recovery."

Looking Back, Forward
Republicans and Democrats have "blamed each other for the failure to pass an economic stimulus bill" before the holiday recess. "Many families do not have access to adequate unemployment insurance or health insurance, and yet the Republicans have held hostage every penny of relief" through their support of legislation that will not pass in the Senate, Rep. Charles Rangel (D-N.Y.) said in a Dec. 22 radio address. Republicans have said that the revised House bill would provide health insurance for more unemployed workers "more quickly" than the plan proposed by Democrats. But Rep. Anthony Weiner (D-N.Y.) said on CNN Dec. 22 that Democrats will not support an economic stimulus bill after the holiday recess "unless it includes help for the unemployed, an extension of health benefits" for unemployed workers and tax reductions for low-income Americans (Price, Washington Times, 12/23). Senate and House Republican leaders said that they will "examine the condition of the economy" when they return from the holiday recess to determine whether "stimulus legislation is still necessary." However, on the Dec. 23 edition of "Fox News Sunday," Sen. John Breaux (D-La.) said, "If we're still in a recession, we still have high unemployment, people without health insurance ... I think the move and drive to pass something will still be as prevalent as it is today" (Howard Price, Washington Times, 12/24). Rep. Christopher Shays (R-Conn.) added, "My suspicion is we will have a stimulus package in March" (Washington Times, 12/23).

Washington Post on Medicaid
Meanwhile, according to a Dec. 24 Washington Post editorial, "one of the most important issues" in the debate over an economic stimulus bill -- providing additional funds for state Medicaid programs -- "was unfortunately among the least discussed." Although Democrats proposed a "modest, temporary increase" in federal Medicaid funds for states, the editorial points out that the "idea got nowhere" after opponents "expressed the fear that it would lead to lasting expansion of an already costly entitlement." Noting that many states, facing budget shortfalls, are considering cutting Medicaid programs at the same time program enrollment is rising, the editorial concludes, "The idea of stepped-up aid is ... a good one and deserves to be revived if the stimulus debate resumes next year" (Washington Post, 12/24).