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.

"We are far from the finish line," Snowe said. "There are many miles in this journey."