Democrats Reach Deal on Abortion, Set Stage for Health Debate

Nov. 7 (Bloomberg) -- House Democrats moved to clear one of the last hurdles to a historic debate on legislation to overhaul the U.S. health system, agreeing to a demand by 40 lawmakers to allow a vote on restricting funds for abortion.

Democratic leaders today will let the lawmakers offer an amendment that would impose tougher limits on the use of federal money to finance abortions for people obtaining insurance on federally subsidized online exchanges. That amendment faces opposition from Democrats who support abortion rights.

The agreement came after a day of negotiations among House leaders including Speaker Nancy Pelosi to try to break an impasse to a vote on the biggest revamp of the nation’s medical- care system in more than four decades.

“Tomorrow’s the day,” said Representative James McGovern, a Massachusetts Democrat, after the Rules Committee agreed to allow the abortion vote. “This is the closest we’ve ever been” to health-care reform, McGovern said. “We have to make sure we don’t blow it.”

The committee met for almost 12 hours, voting just before 2 a.m. on parameters for debate on the abortion amendment as well as alternative legislation proposed by Republicans. Even as the committee met, a steady stream of lawmakers visited Pelosi’s office to negotiate on abortion.

President Barack Obama is scheduled to meet with House Democrats on Capitol Hill today to rally support as the members begin a floor debate on the president’s top legislative priority.

Obama and members of his Cabinet have been lobbying wavering Democrats as House leaders orchestrated the 11th-hour effort to secure votes needed to pass the legislation.

‘Historic Moment’

Representative Jason Altmire, an undecided Democrat from Pennsylvania, said yesterday that Obama and White House Chief of Staff Rahm Emanuel called him to make the pitch that “this is an historic moment.”

Administration and House leaders have stressed the House bill isn’t the final product, since the Senate is deliberating over its own version, “but if we didn’t do this, it’s dead,” Altmire said.

The $1.05 trillion legislation would cover 36 million uninsured people and create a government program to compete with private insurers. It would require all Americans to get insurance, set up the new insurance-purchasing exchanges for people who don’t have employer-provided benefits, and provide subsidies to help people obtain coverage.

Republicans Opposed

With Republicans unified in opposition, Democrats need 218 of their members to pass the bill.

“Speaker Pelosi is trying to force her members to vote for a bill that the American people have soundly rejected,” House Republican Leader John Boehner of Ohio said at a press conference yesterday.

The abortion issue looms as a stumbling block to a vote, as does the question of how to prevent illegal immigrants from benefiting from government subsidies to buy insurance.

Anti-abortion Democrats, along with many Republicans, are concerned that lower-income Americans in the proposed health- insurance exchanges could use federal subsidies to pay for abortions.

The U.S. Conference of Catholic Bishops was among those also raising concerns that the public plan may cover abortion. Representative Bart Stupak, a Michigan Democrat, proposed the amendment that the Rules Committee ultimately agreed to put up for a vote.

Stupak predicted his amendment would pass. “I think we’ll get more than 39, 40 Democrats,” he said.

Perils for Pelosi

Still, the amendment poses risks for Pelosi. Colorado Representative Diana Degette, a Democrat who leads a coalition of 190 Democrats who favor access to legal abortion, said her group would oppose any legislation that makes it harder for women to gain access to the procedure.

Some Democrats have voiced displeasure with other aspects of the legislation. Representative Stephanie Herseth Sandlin of South Dakota said she wouldn’t back the measure. “The House bill misses a critical opportunity to address access, quality and costs,” she said in a statement.

Herseth Sandlin, a leader of the Blue Dog Coalition of self-described fiscally conservative Democrats, held out the possibility the measure may be improved during negotiations with the Senate.

Another Blue Dog, John Tanner of Tennessee, issued a statement saying he wouldn’t support the bill because it “will not help control the long-term costs of health care.”

The bill calls for the biggest expansion of the nation’s health-care system since the 1965 creation of the Medicare program for the elderly.

Sunday Vote?

There was no guarantee a vote would be held today. Representative Artur Davis, an Alabama Democrat, said there’s a “growing sense” among lawmakers the vote will be delayed until Sunday.

Pelosi, a California Democrat, said yesterday she was hopeful a Sunday session wouldn’t be necessary. “It all depends on the Republicans and how long they want to delay,” she said.

“We’ll see when we get to the floor,” Pelosi said when asked if she had the votes.

Another dispute involves illegal aliens. The legislation bars the undocumented immigrants from getting subsidies to purchase private insurance that would go to low-and middle- income people. Illegal immigrants would also be prevented from buying insurance from the government-run insurance plan.

More Restrictions

Some lawmakers want to go beyond that, preventing the undocumented people from purchasing private coverage on the online exchange.

Raul Grijalva, an Arizona Democrat, said yesterday that Hispanic lawmakers got a pledge from leaders to defeat any Republican attempt to insert language to bar undocumented immigrants from exchanges.

House Rules Committee Chairwoman Louise Slaughter, a New York Democrat, said the immigration language won’t be changed by her panel.

To contact the reporters on this story: James Rowley in Washington at jarowley@bloomberg.net ; Catherine Dodge in Washington at Cdodge1@bloomberg.net