Senate Republicans Introduce Health-Overhaul Repeal

By Julie Hirschfeld Davis and Laura Litvan

Feb. 1 (Bloomberg) -- Senate Republicans introduced a measure to repeal the U.S. health-care overhaul, setting up a test vote over President Barack Obama’s biggest domestic achievement.

Republican leader Mitch McConnell of Kentucky introduced the repeal, passed last month by the Republican-controlled House, as an amendment to legislation to reauthorize the Federal Aviation Administration.

“It’s an opportunity to re-evaluate your vote, to listen to your constituents who are desperately trying to get your attention,” McConnell said. “You can say, perhaps this was a mistake. We can do this better. Or you can continue to dismiss the majority of people in this country as not knowing what they’re talking about.”

Leadership aides in both parties said the vote probably would be held tomorrow. The aides, who spoke on condition of anonymity, said the two sides were working toward a plan to have a procedural vote on the Republican repeal measure and a separate vote on a proposal to eliminate a tax-filing provision that both parties oppose.

Majority Leader Harry Reid, a Nevada Democrat, said, “We want to get this out of their system very quickly.”

McConnell said all 47 Senate Republicans will vote for the repeal. While the roll-call will likely be on a procedural move, McConnell said members of his party would achieve their goal of making it clear they’re against the measure.

‘Who is for Repeal’

“We pledged to the American people that we would seek to repeal the 2,700-page bill that seeks to restructure all of American health care and put the decisions in Washington,” McConnell said. “It’ll be clear who is for repeal and who isn’t.”

The health-care law cleared Congress last year with no Republican support. It extends coverage to an estimated 32 million uninsured Americans, imposes new taxes on the highest wage-earners and on medical-device makers and other health care industries, and provides hundreds of billions of dollars in Medicare savings.

While the Republican move sets up a vote on health care as one of the Senate’s first orders of business this year, it will have little immediate effect.

Democrats have a 53-47 voting majority in the Senate, including two independents who usually side with them, so Republicans lack the number needed to push through a repeal. Even if they could, it would face a certain veto by Obama. The vote will let senators go on the record on a topic sure to be a major issue in the 2012 elections.

Public Opinion

Lawmakers in both parties said public opinion was on their side.

“The message is pretty clear: Four out of five Americans want us to continue to move forward on health care reform; mend it, but don’t end it,” said Senator Dick Durbin of Illinois, the second-ranking Democrat. “If you’re going to change any provisions, fine, make it better. But don’t repeal health care reform.”

Durbin said Republicans are “bowing to the Tea Party, bowing to the most conservative members of the Republican Party, to indicate that they got the message.”

Reid said the repeal is “not going anyplace” and called it “a deficit buster to say the least.”

The nonpartisan Congressional Budget Office last year said the health overhaul would reduce the deficit by $138 billion within a decade.

Court Ruling

A federal judge in Florida ruled yesterday that Congress exceeded its authority by requiring people to buy insurance. The Justice Department said it will appeal the decision.

A second proposed amendment to the FAA bill, by Democratic Senator Debbie Stabenow of Michigan, would accomplish a goal that has bipartisan support. It would eliminate a provision that forces businesses to file 1099 tax forms for any vendor with whom they have at least $600 in transactions.

There is broad sentiment on Capitol Hill for doing away with the provision, although the two parties are split on how to make up the revenue that would be lost by doing so.

Also today, Republican Senators Lindsey Graham of South Carolina and John Barrasso of Wyoming introduced legislation to let states opt out of portions of the health-care overhaul. Barrasso said Republicans may try to add the measure to the FAA bill.

Because most of the law’s provisions don’t take effect immediately, opponents have many opportunities to try to chip away at it, said Senator Lamar Alexander of Tennessee, the third-ranking Republican.

“You won’t see it all in one day,” Alexander said. “We have time to identify the steps that will meet our major objective, which is to lower the cost of health care, so that more Americans and more American businesses can afford it.”

--Editors: Laurie Asseo, Jim Rubin.

To contact the reporter on this story: Julie Hirschfeld Davis in Washington at jdavis159@bloomberg.net; Laura Litvan in Washington at llitvan@bloomberg.net.

To contact the editor responsible for this story: Mark Silva at msilva@bloomberg.net