Editore"s Note
Tilting at Windmills

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August 2, 2009

THE RECONCILIATION INSURANCE POLICY.... I was talking to a Senate aide this week, trying to wrap my head around the details of the reconciliation process. The staffer conceded that she, too, can get tripped up on how reconciliation works.

It comes up from time to time, and in light of recent events, it's becoming more of an issue all the time. Reconciliation, in the most general sense, allows legislation to be voted on, up or down, sidestepping a filibuster. In the context of health care reform, that matters a great deal -- even if some center-right Democrats in the Senate sided with Republicans on reform, if proponents simply needed a majority vote, the bill would very likely pass no matter what Nelson, Bayh, Lieberman, and Landrieu thought. It's why reconciliation language was added to this year's budget a few months ago.

There is, however, quite a bit more to it than that. The NYT's Carl Hulse considers the reconciliation question, which is apparently about as convoluted as the reform proposal itself.

[Sen. Kent Conrad (D) of North Dakota], who is one of the Democrats bargaining with Republicans, has been advising that fashioning a health care plan under byzantine reconciliation rules is a bad idea. From his perspective, a major impediment is the fact that the plans devised by the Senate finance and health panels would have to produce $2 billion in savings over five years and not add to the deficit after that.

Considering the upfront costs of trying to bring all Americans under the health insurance umbrella, and the fact that some of the structural health care changes that lawmakers are eyeing might not produce immediate savings, the deficit rules could severely limit the scope of a bill.

"You would have a very difficult time getting universal coverage in reconciliation," Mr. Conrad said.

And that is just the beginning. Under the Congressional Budget Act of 1974, reconciliation bills were given special Senate protection and allowed to pass by simple majority votes, after limited debate, to give senators the ability to make the kinds of tough decisions required to cut the deficit.

At the same time, Senator Robert C. Byrd, Democrat of West Virginia and longtime protector of the prerogatives of the Senate, created a complex set of rules intended to impede those who would dare to use reconciliation to rewrite federal policy rather than produce budget savings.

Under the Byrd Rule, provisions where the fiscal consequences are "merely incidental" to the true intent of the legislation can be struck from the bill unless 60 senators vote to waive the rule. Reconciliation measures are traditionally scoured for such provisions, in what is known around the Senate as giving the bill a "Byrd bath."

Because Republicans would most likely be so incensed that Democrats were trying to force through a sweeping health plan by simple majority vote, they would no doubt challenge many elements of the bill and could strip them out.

Reform advocates could, in theory, work around the Byrd Rule, but that would require still more procedural acrobatics.

That said, Hulse reported that Senate Democrats, unsure of what's likely to happen, are talking "reluctantly" and "very, very quietly" about the reconciliation possibility, looking at the tactic -- which Hulse said is "doable" -- as a "last resort."

In other words, if it's a choice between reconciliation or failure, some reform advocates think the choice is obvious. A former budget expert for Senate Republicans who now works for a health insurer, concluded that reconciliation is the Democrats' "insurance policy for health reform."

Mark Schmitt had a good item on this, too, this week.

Steve Benen 11:30 AM Permalink | Trackbacks | Comments (13)
 
Comments

To hell with the Senate and its arcane rules. A good bill is worth exercising the nuclear option for.

Posted by: PeakVT on August 2, 2009 at 11:43 AM | PERMALINK

Schmitt's article is a must read.

Posted by: Frank C. on August 2, 2009 at 11:59 AM | PERMALINK

Yeah, because California, which needs a supermajority to accomplish anything legislatively, is the model we should be emulating on a national scale.

The way to pressure the Blue Dogs to vote for cloture is to keep repeating examples of Republican insanity -- the Birther nonsense, the federal government will come to the doors of seniors to schedule their euthanasia, health care reform will be Obama's "Waterloo", etc. And then finish by asking the Blue Dogs why they're even talking with these nuts.


Posted by: SteveT on August 2, 2009 at 12:11 PM | PERMALINK

I'm like the nuclear option to.

If Health Care Reform fails, or sucks, then I think the American people would understand.

Besides, Democrats did fuck all with the filibuster anyway, and you know the "60 votes needed" will turn into "51 votes" as soon as the republicans are back in the majority.

There isn't a single damned thing to lose by doing so.

Posted by: inkadu on August 2, 2009 at 3:40 PM | PERMALINK

Congressman Bobby Scott (D-VA) came to a health care discussion 8/1 in SE VA, run by Democracy For America (Dean's outfit.) He explained the plan as best he could, and I don't remember that clearly but he said there's be a public and a private option, and they'd compete. But the private insurers would have to follow rules, like discussed in earlier threads. It sounded good enough that even a local libertarian/teaparty activist going as "Alexander of York" said he could accept such a plan. That isn't a bad thing per se; the public interest is presumably best served if a wide range of them can support a plan. Well I wonder, should progressives support it? But at least, better than what we have I suppose ...

Posted by: Neil B on August 2, 2009 at 5:07 PM | PERMALINK

Matt Yglesias had some good discussion on reconciliation a few weeks back too.

http://yglesias.thinkprogress.org/archives/2009/07/the-reconciliation-option.php

My basic take is that reconciliation will work only to the extent that Harry Reid wants to be a badass. You can't play the reconciliation game without knowing in advance that you are going to 'go nuclear' or strong arm or whatever. If the 18,000 Americans that die each year as a consequence of our current dysfunctional system aren't enough to move the Democratic Party to break some eggs while making an omelet then the Democratic Party is the party of FAIL and they only hold power because people tired of the party of CRAZY.

Posted by: joejoejoe on August 2, 2009 at 7:25 PM | PERMALINK

Somehow I believe that the Republicans under Bush (with less than 60 senators) would be able to easily pass something like this. (That is, something that they wanted passing.)

Our political system does not work anymore - at least not for the good of "the people".

Posted by: JohnBubba on August 2, 2009 at 8:50 PM | PERMALINK

I can think of no acceptable reason to use the so-called nuclear option except for the purpose of putting a good health-care reform bill on the President's desk.

Posted by: j h woodyatt on August 2, 2009 at 9:17 PM | PERMALINK

David Waldman (Kagro X of DailyKos fame) has posted some fine details about the process in this post at Congress Matters: What's up with the budget and reconciliation, anyway?

http://www.congressmatters.com/story/2009/4/28/1190/93382

Posted by: Kafkananda on August 2, 2009 at 10:32 PM | PERMALINK

How could Bush ever have used reconciliation for tax cutting bills when the process is designed to ensure budget neutrality? If you can get rubbish like Bush tax cuts thru, certainly you can do healthcare overhaul.

Posted by: bob h on August 3, 2009 at 6:34 AM | PERMALINK

Quite frankly, if "reconciliation" is what it takes to pass at 51, then so be it. Every bill that goes to the Senate floor should be able to pass with 51 votes. The simple THREAT of a filibuster these days requires every bill to get 60 votes.

I say if someone wants to filibuster then put the old rule back in place. The one who calls it has to stand on the Senate floor and speak non stop until 60 votes are gathered to stop it.

Posted by: Wayne on August 3, 2009 at 9:17 AM | PERMALINK

I prefer this health care bill passes with no republican votes. I want it to go the reconcilliation route. I don't want those fuckers to get any of the credit when this turns out to be a successful program. I hope this is what Reid is planning. ANd if the blue dogs want to side with the republicans, they can accept the penalty and will deserve it.

Posted by: Patrick on August 3, 2009 at 10:01 AM | PERMALINK

We really need to stop worrying that we will piss off the republicans. They don't give a SHIT about us or the American people and they will shit on us every chance they get. If we don't get this passed, we do not deserve to lead.

Posted by: Patrick on August 3, 2009 at 10:03 AM | PERMALINK
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