Senate panel OKs health reform bill; Obama: 'We're not there yet'


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WASHINGTON (CNN) -- The health care reform debate reached a new milestone Tuesday as a key congressional committee passed an $829 billion plan projected to extend coverage to an additional 29 million Americans.
"Now's not the time to pat ourselves on the back," President Obama says at the White House on Tuesday.

"Now's not the time to pat ourselves on the back," President Obama says at the White House on Tuesday.
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The Senate Finance Committee's bill would subsidize insurance for poorer Americans, establish nonprofit health care cooperatives, and create health insurance exchanges to make it easier for small groups and individuals to purchase coverage.

Among other things, it would cap annual out-of-pocket expenses and prevent insurance companies from denying coverage for pre-existing conditions.

The plan is financed by a combination of reductions in spending for Medicare and other government programs, as well as higher taxes on expensive insurance policies and new fees on the health industry.

The committee passed its long-awaited plan Tuesday with a 14-9 vote. Sen. Olympia Snowe, R-Maine, was the lone committee member to cross party lines, breaking with other Republicans to vote for the measure. All the committee's Democrats supported the bill. Video Watch why there was applause after the vote »

The Finance Committee was the last of five congressional panels to consider health care legislation before formal debate begins in the full House and Senate.

President Obama expressed satisfaction, but said more work remains.
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"We are now closer than ever before to passing health reform, but we're not there yet," he told reporters in the White House Rose Garden. "Now's not the time to pat ourselves on the back."

Instead, he said, it is time to "dig in and work even harder to get this done." Video Watch Obama laud action, call for more work »

Obama singled out Snowe "for both the political courage and the seriousness of purpose that she's demonstrated throughout this process."

Democratic leaders in each chamber have now started the politically delicate task of melding together five pieces of legislation -- two in the Senate and three in the House.

Last week, the nonpartisan Congressional Budget Office estimated the Finance Committee's bill would cut the national deficit by roughly $80 billion over the next 10 years while expanding coverage to 94 percent of the country's non-elderly population.

"Ours is a balanced plan," said committee Chairman Max Baucus, D-Montana. "Now is the time that will tell whether things are merely said, or whether something is actually done. Now is the time to get this done."

Iowa Sen. Charles Grassley, the committee's top Republican, said he wished he "felt better about the substance of the bill," which is "moving on a slippery slope to more and more government control of health care." Video Watch what Grassley had to say about health care reform before the vote »

Snowe indicated she has concerns with several aspects of the bill, but didn't want to see the reform process derailed.

"Is this bill all that I would want? Far from it," she said. "Is it all that it can be? No. But when history calls, history calls. And I happen to think that the consequences of inaction dictate the urgency of Congress [taking] every opportunity to demonstrate its capacity to solve the monumental issues of our time."

On Monday, an insurance industry trade group questioned several of the assumptions underpinning the bill. America's Health Insurance Plans released a report stating that, if enacted, the bill would increase premiums for families by an extra $4,000 by 2019. It said premiums for individuals would rise by an additional $1,500.

The analysis, conducted by the firm PricewaterhouseCoopers, threatens to undermine Obama's assertion that it is possible to expand coverage while slowing the rate of medical inflation.

A Finance Committee spokesman slammed the analysis, calling it "a health insurance company hatchet job, plain and simple." Snowe said it was "surprising" the insurance industry "would issue that kind of condemnation when you are trying to create a constructive approach" potentially worth billions of dollars to private companies.

The committee's plan, initially drafted by Baucus, is the only one under serious consideration that excludes a government-run public health insurance option. Several top Democrats, including House Speaker Nancy Pelosi, have questioned whether it is possible to contain costs without creating a public option to serve as a check on private insurers.

Republicans and some conservative Democrats oppose the government-run insurance option, saying it would drive private insurers from the market and eventually bring a government takeover of the health care system.

Baucus has said the more conservative Senate lacks the votes to pass a public option; Pelosi has repeatedly insisted the more liberal House will pass a bill that includes one.

The Finance Committee plan was partly the result of months of negotiations between Baucus and five other panel members -- three Republicans and two Democrats. The proposal from the "Gang of Six" has been widely viewed as the only one with the potential of attracting any Republican support.

The vote came after the committee spent two weeks debating 130 amendments. Committee members boosted the bill's overall price by more than $50 billion in part by expanding insurance subsidies for individuals and families with lower incomes.

They also voted to exempt senior citizens from higher taxes on medical expenses.

The sweeping bill would be paid for in part by cutting spending on several health care programs -- including Medicare -- by roughly $400 billion. Another $200 billion would be generated by imposing a new tax on high-end health care policies, dubbed "Cadillac" plans by critics.

At the same time, new fees would be imposed on drug and insurance companies, medical device manufacturers and other industries tied to the health care sector.

Individuals would be required to purchase coverage or face a fine of up to $750.

Senate Majority Leader Harry Reid's goal is to emerge with a single bill that can overcome a potential filibuster by winning at least 60 votes in the Senate. He wants to meet Obama's goal of designing a bill that will cost no more than $900 billion over the next decade.

Senate aides expect that effort to take a couple of weeks.

Joining Reid in the decision-making will be Baucus; Sens. Christopher Dodd of Connecticut and Tom Harkin of Iowa; senior Democrats on the Health, Education, Labor and Pensions Committee; and Rahm Emanuel, the White House chief of staff.

Other key senators -- including Snowe, one of the Gang of Six -- are also expected to be involved.

Aside from wrestling with the public option, Democratic leaders have to resolve sharp differences over how to pay for a reform plan. Top House Democrats oppose a tax on high-cost policies, which they fear would affect many union members. They have instead proposed a tax surcharge on individuals with annual incomes over $500,000, or families earning more than $1 million.

To get a bill passed, Reid could implement a legislative option known as reconciliation, which would require only 50 votes instead of 60. However, Republicans have promised a "minor revolution," in the words of GOP Sen. Lamar Alexander of Tennessee, if Democrats resort to that rarely used tactic.
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Republican leaders, who have criticized the various Democratic plans for their size and scope, won't be involved in the upcoming negotiations. One senior Republican leadership aide recently quipped that she would be in her office with her feet on her desk during the talks because she wasn't going to be invited to offer suggestions.

If the House and Senate manage to pass health care reform bills, a conference committee would then negotiate a final version requiring approval from both chambers before going to Obama for his signature.


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Attacker slashed her throat, but he could not silence her


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Now begins another chapter in Schuett's 19-year quest for justice.

Standing in front of the television cameras, Jennifer Schuett blinked back tears.

"This is a huge day for me," she later told CNN over the phone. "And I want to see this through the end. The rest will come out during the trial."

Schuett, 27, joined a multi-agency team of investigators in her hometown of Dickinson, Texas, as they announced the arrest earlier in the day of Dennis Earl Bradford, a 40-year-old welder, in Little Rock, Arkansas.

The arrest came after new DNA testing and other evidence made it possible to identify Bradford as the suspect.

Schuett's boyfriend and two police investigators who kept the case alive stood beside her. Fighting tears, she thanked them for their support.

"Throughout this journey, I've had two main goals," she said. "And they were to find the man who kidnapped, sexually assaulted and attempted to murder me 19 years ago so that he could not hurt anyone else. And to use my voice in telling my story to as many people as I possibly could over the years in hopes that I may encourage other victims of violent crimes to stand up and speak out against criminals." Video Watch Schuett explain why she's speaking out »

She continued, "Today, I can say very proudly that I have accomplished both of these goals."

Schuett spoke with CNN two weeks ago about her 1990 ordeal. CNN normally does not identify victims of sexual assaults. But Schuett decided to go public with her story and her name to increase the chances of finding and prosecuting her attacker.

Schuett was in her bed when a man crept in through a window on August 10, 1990. She remembers waking up in a stranger's arms as he carried her across a dark parking lot. She said he told her he was an undercover cop and knew her family.

He drove her through the streets of Dickinson, pulling into an overgrown field where, she said, he sexually assaulted her.

She passed out. When she regained consciousness, she was lying on top of an ant hill with her throat slashed and her voice box torn. She spent about 14 hours in the field before she was found and rushed to the hospital in critical condition.

"Three days after the attack, I started giving a description. The doctors told me I would never be able to talk again, but I proved them all wrong," Schuett said. She believes she got her voice back so she could tell her story.

At the news conference, a driver's license photo of the suspect was shown next to the 1990 sketch based on her description. There was a clear resemblance.

Shauna Dunlap, a spokeswoman for the FBI's Houston office, said Bradford lived in North Little Rock, with his wife and two children -- a boy, 12, and a girl, 15. He also has three adult stepchildren.

Bradford worked as a welder for United Fence in North Little Rock. A company representative said Bradford had been working there for 10 years and was a "good guy" who had mended "his old ways" and "changed his life." He wouldn't go into specifics about what those "old ways" were. Court documents give some indication.

In 1996, Bradford was accused of kidnapping, sexually assaulting and cutting the throat of a female victim. He was initially charged with attempt to commit first-degree murder, but prosecutors amended the charges to rape and kidnapping.

A Garland County Circuit Court jury found him guilty of kidnapping but was not able reach a verdict on the rape charges. Arkansas corrections officials said he entered prison in March 1997, facing a 12-year-sentence, and was paroled in February 2000. Investigators also found Bradford lived slightly more than two miles from Schuett's residence and just a mile and a half from where she was found, according to an affidavit released Tuesday.

"It's truly a rare occasion when we have the opportunity to prosecute a case like this," said Galveston County District Attorney Kurt Sistrunk. His office is charging Bradford with attempted capital murder.

"Jennifer has been a tremendous asset to this investigation from the beginning, an inspiration to all of us, and we are going to be very proud to have Jennifer by our side as we continue with our efforts to seek justice for you in the courtroom," said Sistrunk.

The break in the case came after FBI agent Richard Rennison and Dickinson police Detective Tim Cromie persuaded the FBI's Child Abduction Rapid Deployment (CARD) team to get involved.

"The main reason the CARD team picked this case was because she was alive," Rennison said. "In cases of child abduction, it is rare that the child is recovered alive. Frequently, you recover a body. And most times, you never find them."

In March 2008, the investigators found evidence collected 19 years ago -- the underwear and pajamas Schuett was wearing, as well as a man's underwear and T-shirt, which were found in the field where Schuett was left for dead.

The clothes had been tested in 1990, but the sample wasn't large enough for conclusive results. But newer techniques allow DNA to be isolated from a single human cell.
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The FBI lab recently informed Rennison that the DNA in the man's underwear matched Bradford's DNA profile. He was entered into the database after the 1997 kidnapping conviction in Arkansas.

Bradford was arrested on Tuesday morning on his way to work. He awaits extradition to Texas.


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Next Up: Harry Reid and the Blenders


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So now what?

The Senate Finance Committee had barely voted on the big health care legislation when the infinitesimally short attention span of Capitol Hill shifted to the next step. And it sounds like the debut of a 1950’s doo-wop band: ladies and gentlemen, give it up for Harry Reid and the Bill Blenders.

That would be the majority leader, Senator Harry Reid of Nevada, and the team of senators, aides and White House officials who will meld the Finance Committee bill with an alternate version of the health-care legislation that was approved back in July by the Senate Health Education Labor and Pensions (HELP) Committee.

Mr. Reid will gather the group in his office on the second floor of the Capitol for its first official meeting on Wednesday. The group includes Senator Max Baucus, Democrat of Montana and the Finance Committee chairman; Senator Christopher J. Dodd, Democrat of Connecticut, who was acting chairman of the HELP committee when it passed its health care bill; and representatives of the White House.

Jim Manley, a spokesman for Mr. Reid, said that Senator Olympia J. Snowe of Maine, the lone Republican on the Finance Committee to vote in favor of the bill, would be invited to future sessions. And Mr. Manley said the Democratic leader was prepared to go to substantial lengths to keep Ms. Snowe’s support.

“He is prepared to do what he can to keep her on board while putting together a bill that can get the 60 votes necessary to overcome a Republican filibuster,” Mr. Manley said.

Senate Democrats have already held some preliminary discussions about blending the two bills, and the White House lobbying team is already fully deployed across the Capitol.

The more liberal HELP bill was approved on a strict party-line vote,
with Republicans unanimously opposed. And in many ways, it was only half of a bill, because the Finance Committee has jurisdiction over
the tax provisions needed to finance the legislation, as well as
spending on Medicare and Medicaid.

The HELP bill, for instance, anticipated a major expansion of
Medicaid, the state-federal insurance program for the poor, but it is the
Finance Committee bill that includes the expansion, which extends
eligibility to all Americans earning less than 133 percent of the federal
poverty level, including childless adults currently excluded.

Speaking of the other side of the Capitol, the House speaker, Nancy Pelosi, continues to work on her own blending project, pulling together the bills reported out by three different committees into a single legislative proposal for full floor debate.

The House bill will include a government-run insurance plan, or public option, to compete with private insurers. But Mr. Reid, and perhaps President Obama himself, may have to mediate that issue in the Senate.

Liberal senators want the public option. But Ms. Snowe is firmly opposed. She has expressed openness to a compromise that would allow a government-run health plan to be “triggered” in states where the legislation otherwise does not succeed in providing affordable insurance.


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Kerry to clarify aid bill after Pakistani opposition


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WASHINGTON (CNN) -- Sen. John Kerry said Tuesday he will offer a new explanation and clarification of a $7.5-billion Pakistan aid bill that has prompted a firestorm of anti-American sentiment inside Pakistan.
A member of an Islamic fundamentalist party protests the aid bill October 2 in Pakistan.

A member of an Islamic fundamentalist party protests the aid bill October 2 in Pakistan.

Opponents say the United States is meddling in Pakistani affairs.

Kerry, D-Massachusetts and chairman of the Senate Foreign Relations Committee, stood beside Pakistani Foreign Minister Shah Mahmood Qureshi at the U.S. Capitol on Tuesday afternoon to announce that he and other congressional leaders would release what Kerry called "report language with the force of law" to clear up questions about the nonmilitary aid bill.

The explanation would accompany the bill, which was passed unanimously by the House and Senate, when it is formally sent to President Obama to sign into law, something that could happen in coming days.

"If there are misrepresentations, we're going to clarify this," Kerry told reporters after he and Qureshi met in private.

The United States says the aid bill makes no new demands on Pakistan, but some Pakistani politicians say it will result in American micromanagement of Pakistan civil and military affairs.

Kerry said the multibillion-dollar aid package would provide "deeper, broader, long-term engagement with the people of Pakistan." He said the aid is a sign of friendship and was never intended to interfere with Pakistan's government.
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Kerry and the Pakistani foreign minister are set to meet again Wednesday. The statement of clarification will probably be submitted jointly by Kerry; Indiana Sen. Richard Lugar, the ranking Republican on the Foreign Relations Committee; and Rep. Howard Berman, D-California and the chairman of the House Foreign Affairs Committee.


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