When Senate Finance Committee Leaders Max Baucus (D-MT) and Charles Grassley (R-IA) presented the draft of a jobs bill--the Hiring Incentives to Restore Employment Act-- they said it reflected "a balanced set of member views and priorities."

The original $85 billion jobs bill included several measures on health care reform, including extension of the 65 percent COBRA premium subsidy for terminated workers through May 31, 2010; a seven month extension of the sustainable growth rate (SGR) update formula (to keep physicians from facing a 21 percent reduction in payments from Medicare); an extension of the exceptions process for Medicare therapy caps; a clarification of the definition of "hospital-based physician" under the American Recovery and Reinvestment Act (which would expand eligibility for physician health information technology incentive payments to physicians who practice in hospital-owned outpatient centers-such as emergency rooms), and extend payment provisions for rural hospitals and other facilities.

However, shortly after the Senators presented their draft bill last week, Senate Majority Leader Harry Reid introduced a stripped-down $15 billion jobs bill, replacing the Baucus-Grassley bill. Reid stated that the new bill was "simplified" and "focused;" among many measures eliminated from the Baucus-Grassely were the health care provisions.

White House Press Secretary Robert Gibbs had released a statement supporting the Baucus-Grassley bill shortly after its presentation, saying "The President is gratified to see the Senate moving forward in a bipartisan manner." Last Friday however, the White House, like much of Washington, seemed to be taken by surprise by Reid's rejection of the Baucus-Grassley bill. In a press conference, Gibbs commented, "I don't know the degree to which Senator Reid, who I see in media reports made his decision before he went to caucus, I don't know the degree to which he talked to us about that."

However, Gibbs also said that the Reid bill won't necessarily stand alone: "I think this is just one of many vehicles that will likely go through the Senate during this process. I think there are a number of ideas that will garner bipartisan support that aren't in the initial piece of legislation that Senator Reid will move."

In fact, the President appears to be taking a stronger stand and presenting some health care reform proposals of his own. Chief of Staff Rahm Emmanuel and Health and Human Services Secretary Kathleen Sebelius sent out the official invitation to Democrat and Republican leaders for the bipartisan meeting at the Blair House on February 25 to discuss health reform legislation. (See DM 11594, 11613). The invitation states that "Since this meeting will be most productive if information is widely available before the meeting, we will post online the text of a proposed health insurance reform package. This legislation would 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."

The invitation goes on to say that the live-broadcast event will feature the President's opening remarks, followed by remarks from a Republican leader and Democratic leader. The President will proceed to open and moderate discussion on "four critical topics: insurance reforms, cost containment, expanding coverage, and the impact health reform legislation will have on deficit reduction."

Read More:
The Senate Finance committee bill summary: http://finance.senate.gov/press/Bpress/2010press/prb021110a.pdf

Secretary Gibbs' remarks: http://www.whitehouse.gov/the-press-office/briefing-white-house-press-secretary-robert-gibbs-21210

White House letter for the bipartisan meeting: http://www.whitehouse.gov/sites/default/files/rss_viewer/2010blairhouse_letter.pdf

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