Obama Transition Team Hopes To Complete Stimulus Bill Draft by Dec. 25; Democrats Say Health Care Funding Could Account for One-Fifth of Package

The transition team for President-elect Barack Obama seeks to complete a two-year economic stimulus "blueprint" by Dec. 25 to allow Democratic congressional staff members to draft legislation by the new year, the New York Times reports (Calmes, New York Times, 12/19). In a meeting with congressional staff members on Thursday, Obama economic adviser Jason Furman and congressional liaison Phil Schiliro said that Obama plans to propose a stimulus package of between $670 billion to $770 billion but expects additions by Congress to increase the cost to about $850 billion (Montgomery, Washington Post, 12/19).

According to Democrats, funds for health care programs likely will account for about one-fifth of the Obama stimulus package. The package likely will include $100 billion in additional federal funds for state Medicaid programs and "call for a down payment on the $50 billion he proposed during his campaign to help medical providers buy information technology and save costs on health records," the Times reports (New York Times, 12/19).

House, Senate Prospects
House Speaker Nancy Pelosi (D-Calif.) has said that she hopes to have the House pass a stimulus package by the second week of January. The Senate Finance Committee has scheduled votes on a stimulus package for Jan. 8, but "subsequent debate on the Senate floor could take more than a week," the Times reports (New York Times, 12/19).

According to a letter sent on Thursday from the office of Senate Majority Leader Harry Reid (D-Nev.) to the Senate Democratic Conference, Obama seeks to have Congress pass a stimulus package in time for him to sign the legislation on Inauguration Day, Jan. 20 (Drucker, Roll Call, 12/18). Furman and Schiliro said that Congress likely will not pass a stimulus package until Jan. 30, but "even that date may be optimistic for a package of the magnitude under discussion," the Washington Post reports.

Some House Democrats have said that the fiscally conservative Democratic Blue Dog Coalition likely will oppose any stimulus package of more than $600 billion (Washington Post, 12/19). The "opposition of some Senate Republicans and House and Senate negotiations on a final compromise could force delays into February," according to the Times (New York Times, 12/19).

On Thursday, a coalition of liberal organizations and labor unions launched a campaign that calls on Congress to pass a stimulus package by Inauguration Day (Weisman, Wall Street Journal, 12/19).

Physicians Seek Medicare, Health Care IT Funds
In related news, Jeffrey Harris, president of the American College of Physicians, on Wednesday sent a letter to HHS Secretary-designate Tom Daschle that asks for a 10% increase in Medicare reimbursements for all services provided by primary care physicians for 18 months in the Obama stimulus package. According to the letter, the proposal would "stabilize funding for primary care practices, especially smaller ones, which are an essential part of the safety net that people rely on for their care, especially in tough economic times." The letter adds, "Without funding to stabilize primary care practices, many will go under and have to close."

In addition, the letter asks that primary care physician practices receive part of the funds for health care IT included in the stimulus package (Rubenstein, "Health Blog," Wall Street Journal, 12/18).

Many City Officials Cite Health Care as Most Important Issue Facing Obama
Sixty-four percent of city officials cite health care as the most important issue that Obama will face as president, according to an annual survey released on Friday by the National League of Cities, USA Today reports.

According to the survey, 62% of city officials report that the economic conditions of their cities have worsened in the past year, and one-third cite efforts to finance public services as their most important issue (Bello, USA Today, 12/19).