Insurance Discussion

By DAVID ESPO (AP)  WASHINGTON — Democratic officials say businesses would not be required to provide health insurance under legislation being readied for debate in the Senate.

However, large firms would face significant penalties if workers needed government subsidies to buy coverage on their own.

Democratic officials also say that individuals would generally be required to purchase insurance under the proposal being considered, and they would face penalties if they defied a so-called government mandate to do so.

The Democratic officials spoke on condition of anonymity, saying they were not authorized to discuss the private negotiations involving key Senate Democrats and the White House. No final decisions have been made on the details of the measure.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

WASHINGTON (AP) — A proposal for government-backed health insurance is close to gaining the 60 votes needed to pass the Senate and probably will be in overhaul legislation, a Senate Democratic leader said Sunday.

A proposal for the public option that is gaining wide support would allow states to choose not to participate in a government-run insurance program, said New York Sen. Chuck Schumer, the third-ranking Democrat. The “opt out” proposal is drawing support from many liberal and moderate senators and less opposition from lawmakers wary of government insurance, he said.

Although Democrats control the 60 votes needed to advance legislation under Senate rules, not all Democrats support creating a government-run health insurance program. Negotiations in recent days have focused on crafting a public option that would satisfy liberal and moderate Democrats and not drive away others.

Sen. Ben Nelson, a Nebraska Democrat who objects to a national government-run insurance program, said he would be interested in a proposal that allows states to participate only if they ask to join; he called this approach an “opt in” program. Nelson’s vote would be critical in reaching the 60-vote threshold.

“I think if you go with a state-based public option, you can get bipartisan support,” Nelson said. “I think we’re all more comfortable, the people will be more comfortable if the states are engaged in taking care of the situation, recognizing that Utah’s problems and California’s problems are different than Nebraska’s problems.”

Sen. Sherrod Brown, D-Ohio, said the public option is needed now to provide competition in regions where one or two insurance companies dominate the market.

“I’m fine with the state opt out,” Brown said. “If Nebraska or Utah doesn’t want to do the public option, their governor and legislature can pass a law saying, ‘We’re not going to give our citizens that right to have a public option.’”

Schumer said Senate Majority Leader Harry Reid, D-Nev., is leaning strongly toward an opt-out public option. Reid, who would make the final decision about bringing legislation to the Senate for a vote, led a delegation of Democrats to the White House on Thursday to discuss the issue with President Barack Obama.

Obama has said he strongly supports a public option as a way of driving down costs by providing competition to private insurers. But the president has said it is not essential to achieving the broad goals of health care legislation.

Another approach to creating an alternative to private insurance is setting up nonprofit cooperatives, an idea that has been pushed by Sen. Kent Conrad, D-N.D., chairman of the Senate Budget Committee.

Senate Republicans, who number just 40 in the 100-member chamber, oppose the public option in any form.

“It doesn’t make any sense at all,” said Senate GOP leader Mitch McConnell, R-Ky. “In fact, I think 100 percent of Republicans have indicated they don’t think having the government in the insurance business is a good idea.”

Schumer appeared on NBC’s “Meet the Press,” Nelson and Brown were on CNN’s “State of the Union,” and McConnell spoke on ABC’s “This Week.”

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