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The historic snowfall may have shut down the federal government for four days, but the Senate remained focused on advancing a jobs bill. In a surprise move, Senate Majority Leader Reid announced that the Baucus-Grassley jobs/extender bill, the “Hiring Incentives to Restore Employment” (HIRE) Act, which included several health-related provisions, will not be considered by the Senate. Instead, Sen. Reid plans to advance a smaller bill that does not include health-related provisions. The scaled-down bill now consists of payroll tax relief for businesses that hire new workers, extensions of the Highway Trust Fund and the “Build America” bond program, and expense deductions for small businesses. His announcement was apparently prompted by partisan tensions and disagreements on policy within the Democratic caucus.
The HIRE ACT contained a three-month extension of COBRA health benefits and a physician payment “fix” to prevent a 21 percent cut in Medicare payments on March 1. The health-related provisions may be advanced as a separate measure once Congress returns from its President’s Day recess.
Additionally, after the recess, President Obama will host a bipartisan commission health care summit with congressional leaders that will be televised live on February 25th. Health and Human Services Secretary Kathleen Sebelius and White House Chief of Staff Rahm Emanuel sent a letter to Republican and Democratic congressional leaders formally inviting them to the summit and informed them that the President intends to bring his own health reform proposal to discuss. Until now, the Administration has been hands off in drafting specific legislative language, and has left that role almost entirely to Congress. The letter stated that the legislation will “put a stop to insurance company abuses, extend coverage to millions of Americans, get control of skyrocketing premiums and out-of-pocket costs, and reduce the deficit.” Republicans were also encouraged to put forward their own health reform legislation for consideration at the summit.


