Health Reform Update 10/13/09

On Tuesday, the Finance Committee passed its long anticipated bill for health care reform. The bill passed with a vote of 14-9. Of the fourteen affirmative votes, 13 were from Democrats in the committee, and one was from Sen. Olympia Snowe (R-Maine).

The Finance committee’s version of the bill is the least generous in terms of subsidies for working- and middle-class Americans, and it does not carry the public option that has been proposed by other committees in congress. Nevertheless, it is a massive step towards the final health care reform bill, a bill whose progress has been defined by stalemate and postponement.

The bill does require nearly everyone to have health insurance, and provides financial subsidies for those who cannot afford coverage. It also bans insurance companies the right to deny coverage to those with preexisting conditions. The bill is estimated to cost $829 billion over ten years, which will be paid for by taxes, fees, and reductions in Medicare costs.

Though the bill has passed through the Finance committee, it marks the non-bipartisan nature of the issue. With the exception of Sen. Snowe, the bill was passed with only Democratic support. Republicans stand strong in their position, clinging to the idea that a health reform bill only brings the government into the people’s health insurance.

Another version of the pending legislation, drafted by the Senate Health, Education, Labor and Pensions Committee was approved this summer. Now that the Finance Committee has approved its version of the bill, the final draft may be ready to be debated in front of the full Senate later this month. There, support for the legislation looks good.

What is excluded from the legislation, however, is the public option that was supported heavily by some Democrats. The bill will not include a public option when presented to the full Senate.

President Obama praised the efforts of committee members, particularly Sen. Snowe for her courage in going against Republican members in the committee. He pointed out that the bill is not perfect, but it is a start in the right direction. This seems to be a common sentiment among Democrats.

The next several weeks should be telling for the final draft of the Senate health reform bill. As the bill goes to the full Senate, it will be presented to a group of 60 Democrats and 40 Republicans. Though not all Democrats are on board with the public option, 60 votes is what it would take to add this stipulation to the final bill. Regardless of whether or not the public option is added to the bill, there is strong support for the bill in the Senate, and it is very likely that the bill will be passed.

Central Florida Foot & Ankle Center, LLC
101 6th Street N.W.
Winter Haven, FL 33881
Phone: 863-299-4551
http://www.FLFootandAnkle.com

Soda Tax for Obesity?

The obesity epidemic is raging. Roughly one in three adults have a Body Mass Index (BMI) of over 30, which is the medical definition of obesity. Obesity in children is increasing at an alarming rate. Over 17% of children ages 12-19 are obese, up from 5% in the late 1970’s. The statistics show that Americans are becoming more obese and a faster rate, which leads to an array of health problems, from high cholesterol and increased heart disease to an increased incidence of type-2 diabetes.

Many ideas have been explored to combat this trend – national health awareness programs and education is a start, though some more drastic ideas have been proposed. One of these ideas is the soda tax.

Studies have shown that the number one link between childhood obesity and diet is the consumption of sugar-sweetened beverages. These include items such as soda that have added sucrose, high-fructose corn syrup, and other artificial sweeteners.

The proposed tax of a penny-per-ounce on these beverages would be used to offset the health costs associated with obesity-related disease. Supporters of the bill claim that the tax would help deter people from drinking so much soda, and promote the consumption of water and milk among children.

However, opposition to the plan is great. Beverage companies and lobbyists are obviously not behind the idea, stating that it would unfairly hurt sales. They point out that soda is not the only thing in the American diet that causes obesity, and it would be unfair to single them out.

The proposed tax of a penny-per-ounce would increase prices, particularly in packaging of larger quantities. A 2-liter bottle of soda, which on average is priced at about $1.35, would go up $2.02 with the penny-per-ounce tax. A 12-pack of soda, with an average cost of $3.20, would go up 45% to $4.64.

This may seem like a huge increase in prices, but consider this: the average cost of a half-gallon of orange juice is still $3.50. That means that even with the tax it would still be cheaper to buy soda.

So where does that leave us? If the law was passed for a penny-per-ounce or similar tax on sugary soda, would consumers switch to another beverage? And let's not forget diet soda. Would the tax include these beverages as well?

As of now, the proposed soda tax is not included in the health reform bill, nor is it expected to be. President Obama has not pushed for this, though members of the Centers for Disease Control and Prevention have urged for it. Other health groups like the American Dietetic Association have also shown support for the idea.

Central Florida Foot & Ankle Center, LLC
101 6th Street N.W.
Winter Haven, FL 33881
Phone: 863-299-4551
http://www.FLFootandAnkle.com