NU Online News Service, March 23, 2:48 p.m.EDT

WASHINGTON–President Obama has signed the historic billreforming regulation and financing of health care, saying the billprovides "reforms that generations of Americans have fought for andmarched for and hungered to see."

The bill is the Patient Protection and Affordable Care Act,(H.R. 3590.)

At the same time, the reconciliation measure the Senate isconsidering to finance the reforms cleared a major hurdle when theSenate parliamentarian ruled informally that a provision of thebill imposing an excise tax on so-called "Cadillac plans would notviolate budget rules.

Democrats needed the ruling in order to pass the bill with asimple 51-vote majority. Otherwise, the bill would have needed 60votes in order to limit debate, votes Republicans say they wouldnot provide.

It also allows Democratic incumbents in predominantly Republicanstates to bolster their reelection chances by voting against themeasure.

At the same time, several Democratic officials and lobbyistsprojected that Democrats can count on 52 votes for thereconciliation package–and that the final vote will likely occurbefore the Senate leaves Friday for the two-week Easter recess.

In his comments at the signing ceremony, President Obama saidthat, "Today, after almost a century of trying — today, after overa year of debate — today, after all the votes have been tallied,health insurance reform becomes law in the United States ofAmerica."

While some aspects of the bill won't go into effect for years,Obama stressed that a "host of desperately needed reforms will takeeffect right away, this year," particularly the restrictions oninsurance companies. Obama said the bill enshrines "the coreprinciple that everybody should have some basic security when itcomes to their health care."

The nonpartisan Congressional Budget Office said the legislationwould extend coverage to 32 million Americans who lack it, baninsurers from denying coverage on the basis of pre-existing medicalconditions and cut deficits by an estimated $138 billion over adecade. If realized, the expansion of coverage would include 95percent of all eligible individuals under age 65.

Meanwhile, insurance industry officials continued to provide amixed reaction to the legislation.

For example, David Sampson, president and chief executiveofficer of the Property Casualty Insurers Association of America,lauded Congress' decision to exclude from the bill provisionsrepealing the exemption from antitrust provisions afforded tohealth insurers under the McCarran-Ferguson Act.

"We appreciate that Congress recognized repealingMcCarran-Ferguson would not provide any benefits to the consumer orthe insurance marketplace," he said.

Tom Currey, president of the National Association of Insuranceand Financial Agents, said that NAIFA members "are pleased thatCongress has recognized the positive role that health insuranceagents can play in helping small businesses and individuals acquireappropriate health insurance plans," noting that the bill makes itpossible for agents to continue to perform their traditionalrole.

At the same time, he had mixed comments about the reconciliationmeasure that passed the House Sunday and is now being considered bythe Senate.

"The so-called 'sidecar' bill strengthens the individualmandate, and we support that," Mr. Currey said.

On the other hand, he said, "We think the proposed 3.8 percentMedicare tax on the unearned income, including annuity payments, ofhigher income earners, sets a very bad precedent and should bedropped from the reconciliation package."

Mr. Currey argued that, "We need to encourage people to put atleast some of their retirement funds into lifetime annuities – notdiscourage them. This proposal will certainly do the latter."

Janet Trautwein, CEO of the National Association of HealthUnderwriters, said the bill that became law today "does little" totruly rein in healthcare costs.

She also said the bill contains "an unworkable individualmandate which will encourage people to wait until they are sick topurchase coverage, causing premiums to skyrocket significantly foreveryone."