Who Pays for Health-Care Reform?

>> Harry: Healthcare reform is picking up momentum on Capital Hill. The Senate Health Committee passed a $600 billion dollar reform plan Wednesday. Now that's a day after House Democratic leaders put forward their own $1.5 trillion dollar proposal. CBS News Senior White House correspondent Bill Plant phonetic has more. Good morning Bill.

>> Bill: Good morning Harry. You know all along the president has said he wants a health care bill written before the August Congressional recess. And now he's stepped up his efforts to put pressure on members of Congress. He talked with CBS News medical correspondent Doctor John Lavook. phonetic

>> Doctor John: My main focus is on how we can stop putting money into things that aren't making people healthier.

>> Bill: According to the latest CBS News pole, 62% of all Americans want the U.S. Government to exert more control over the U.S. healthcare system. But money, how to pay for reform, is exactly the problem, which could doom it. House and Senate Democrats have offered up separate trillion dollar plans, plans that have no Republican support. Among the ideas on how to pay for reform, charging fees to pharmaceutical companies, a tax on sugary beverages, and a surtax on incomes over $350,000. That's an idea the president supports.

>> President Obama: Personally I think the best way to fund it is for people, like myself who've been very lucky, to pay a little bit more.

>> Bill: Scornful Republicans say today's economic climate is a bad time to rush through a major spending bill. Now the debate is far from over, but it looks very much like it will take a lot longer than the president wanted, and not result in the bipartisan support that he had hoped for. Democrats have made it very clear that they're more interested in getting a health care bill passed then in getting Republican votes. Harry?

>> Harry: Bill Plant at the Whitehouse this morning. Thank you so much. Joining us now to break down the numbers and to explain how healthcare reform could affect you, Jill Schlesinger, Editor in Chief of CBSNewsMoneyWatch.com. Good morning.

>> Jill: Good morning.

>> Harry: So there are a couple of charts that we're gonna show here. I've got the pointer out and everything else. Who does this involve?

>> Jill: 97% of legal Americans will be covered. We have 46 million who are currently uninsured who will be covered. And almost 160 million people who are insured through their employers may see their premiums go down. And limits on those lifetime caps that people have, those are gonna be removed.

>> Harry: Right.

>> Jill: Some of the folks who are paying for their own insurance, they're gonna see some benefits, maybe see some breaks.

>> Harry: Right.

>> Jill: And then, of course, we have everyone who's on Medicare and Medicaid continue to be covered.

>> Harry: And this whole notion that you'll be denied insurance because of a preconditioning, a preexisting condition will be done away with.

>> Jill: Exactly.

>> Harry: I mean this is a giant, giant wish list. Okay. So beyond that then, how does this plan sort of, how does this change, how will this, how will we see changes in our everyday lives?

>> Jill: You're gonna hear the word mandate. That means you have to buy health insurance. It also means your employer has to have insurance for you.

>> Harry: Which is an evolution in the president what he said when he was running, when Obama was running for president versus what?

>> Jill: Exactly. And this is all in negotiation. We don't know this is the, this is the House plan, the Senate plan, everyone's gonna come together. So you got to buy, are you gonna pay a penalty? Your doctor may change. You may find that some doctors don't participate in the public plan.

>> Harry: Right.

>> Jill: And that could change for you. And as you said you can't deny, you can't be denied for a preexisting condition or some health issue that's been in your past.

>> Harry: It's so interesting, because there are so many special interest groups who are fighting this and don't want to hap, let it happen. As Bill suggested in this piece, there's so much, there's a popular support for some sorts of change. I think people will start to balk though when they see what it may cost, the Senate version, over a half a billion dollars, House version more than a trillion dollars. Let's talk about how this gets paid for.

>> Jill: Well this is a funny pie chart, because we see tax increase on the wealthy, which is gonna pay for half of it. What is wealthy? Well if you're an individual it starts at $280,000, for families $350,000. There's gonna be a charge of 1 to up to 5.4% for people who earn over a million dollars. So that's gonna be the lions share. These new surcharges, your business doesn't enroll in them, in a plan, they are gonna pay a tax.

>> Harry: You're gonna pay. Right.

>> Jill: And that's gonna be a problem. Supposedly Medicare and Medicaid savings. But again, all these numbers are out there; they're up for discussion. We don't have a final plan yet. It looks like there will be some compromise, especially on this little pie chart. I think this is where the special interests are gonna come.

>> Harry: And this, and this other one too about small businesses and what they pay, because there's a, the screaming out there, because that's where most of the jobs are generated in the inaudible.

>> Jill: Exactly. 80% of the nations jobs are generated by small businesses.

>> Harry: All right, all right Jill, as always thank you so much. Jill Schlesinger.

>> Jill: Thank you.

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