NU Online News Service, Dec. 15, 3:19 p.m. EST

WASHINGTON–Senate Democrats appear on the verge of dropping a scaled-backed health insurance "public plan" that would make people aged 55 to 64 who lack health coverage eligible for Medicare.

Another provision would have allowed people without health care coverage access to the insurance plan for federal employees.

That plan would have been administered by the Federal Office of Personnel Management, which runs the federal employee plan.

The decision to eliminate use of the federal employee plan drew praise from John Greene, vice president of congressional affairs for the National Association of Health Underwriters.

He said the proposal is being misrepresented and would be an administrative debacle.

Mr. Greene described the component of the plan that would allow access to the insurance plan for federal employees as an "employer plan with a single entry and exit point designed for a specific pool of individuals and not solely for the purpose of gaining insurance coverage."

He said it is frustrating to see reports that ignore what he called an important distinction. "The federal government provides significant assistance with the premium and the rate increases have occurred despite their size," he explained

Mr. Greene said that allowing people to buy into the federal program will be "an administrative nightmare."

Separating employees of the federal government from everyone else "will add significant administrative burdens and for a purpose not associated with employment in the government."

The Democrats appeared to back off from those positions during a caucus last night. They faced public opposition from Sen. Joe Lieberman, I-Conn., and private concern by moderate Democrats.

The part of the plan that Sen. Lieberman objected to was the Medicare component.

Sen. Harry Reid, D-Nev., Senate majority leader, was prepared to deal with Sen. Lieberman's opposition by narrowing the framework of the plan, specifically by walling it off from the Medicare program while substantially reducing the pool of potential beneficiaries.

Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, confirmed that the plan was in danger when he said after he left the meeting last night that, "It's just a matter of getting support from 60 senators, and that seems to be a condition that's necessary to get 60."

Sen. Tom Harkin, D-Iowa, chairman of the Senate Health, Education, Labor and Pensions Committee, also confirmed Sen. Baucus' view.

But Mr. Greene at NAHU said he thought that created other problems for Democrats. "If there is no public option then Sen. Reid has to do something else to placate the liberals who are strong supporters of a public plan," Mr. Greene said.

He said that employers are worried that Sen. Ron Wyden, D-Ore., "will offer or demand" that Sen. Reid accept his employee free choice amendment.

The Wyden amendment, said Mr. Greene, would require employers to provide employees with vouchers equal to the dollar amount they provide. They can then leave the employer and purchase coverage in the exchange and then if they can save money on coverage, they pocket the balance, Mr. Greene explained

"This amendment would in many ways be worse for employers," he remarked.

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Dems Seen Backing Away From Health Insurance Public Plan

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