Both sides skeptical as Sen. Baucus revises health care bill

WASHINGTON -- Lawmakers in both parties remained skeptical of a plan to change the nation's health care system despite a push by a key architect of the legislation Tuesday to boost benefits for middle-class families.

Sen. Max Baucus, D-Mont., who chairs the Senate Finance Committee, offered the changes to build support for his bill, but the frosty response underscored the challenge he faces as the measure slogs toward a vote by his committee this week.

"The time has come to have the courage to take on this daunting task," Baucus said as the finance panel began the first in a series of hearings on the bill after months of behind-the-scenes talks failed to produce a bipartisan compromise.

Democrats on the committee called the measure a good start, but Sen. Jay Rockefeller of West Virginia added that he nonetheless has "serious concerns." Republicans continued to object to its cost and scope. Sen. Jon Kyl, R-Ariz., said the bill is a "stunning assault on our liberty."

Heading into the committee meeting, senators proposed more than 560 amendments. Baucus incorporated dozens of them — including a handful from Republicans — before debate got underway. Among the most significant changes:

• Low- and middle-income families would get slightly larger tax credits to help pay for insurance premiums. Individuals earning $32,490 to $43,320, for instance, would be eligible for a credit covering premiums that exceed 12% of income.

• The maximum fine imposed on families who do not meet a requirement to buy insurance would fall to $1,900 from $3,800.

• An annual cap on tax-free contributions to flexible spending accounts would increase to $2,500, up from the $2,000 ceiling originally proposed.

Baucus said the bill would now cost about $900 billion over 10 years.

Sen. Olympia Snowe, R-Maine, who is being courted by Democrats to support the bill, said the measure includes many good ideas, but she cautioned Baucus against moving too quickly.