WASHINGTON — 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.
Also, other Democratic officials said, businesses would not be required to provide health insurance under the legislation, but large firms would owe significant penalties if any worker needed government subsidies to buy coverage on their own.
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.
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.
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.
Sperately, for businesses with more than 50 employees, the penalty could be as high as $750 multiplied by the total size of the work force if only a few workers needed federal aid, other Democratic officials said under the condition of anonymity. That is a more stringent penalty than in a bill that recently cleared the Senate Finance Committee, which said companies should face penalties on a per-employee basis.
These officials also said individuals would generally be required to purchase affordable insurance if it were available, and face penalties if they defied the requirement.
The measure is expected to reach the Senate floor in about two weeks.
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