[AP] http://news.yahoo.com/s/ap/20090908/ap_ … e_overhaul
WASHINGTON – Americans would be fined up to $3,800 for failing to buy health insurance under a plan that circulated in Congress on Tuesday as divisions among Democrats undercut President Barack Obama's effort to regain traction on his health care overhaul.
As Obama talked strategy with Democratic leaders at the White House, the one idea that most appeals to his party's liberal base lost ground in Congress. Prospects for a government-run plan to compete with private insurers sank as a leading moderate Democrat said he could no longer support the idea.
The fast-moving developments put Obama in a box. As a candidate, he opposed fines to force individuals to buy health insurance, and he supported setting up a public insurance plan. On Tuesday, fellow Democrats publicly begged to differ on both ideas.
Democratic congressional leaders put on a bold front as they left the White House after their meeting with the president.
"We're re-energized; we're ready to do health care reform," said Senate Majority Leader Harry Reid of Nevada.
One idea that Obama championed during and since the campaign — a government insurance option — appeared to be sinking fast.
....the fast-moving developments left liberals in a quandary. They've drawn a line, saying they won't vote for legislation if it doesn't include a public plan to compete with private insurance companies and force them to lower costs.
Are the Dems trying to ruin it for Obama? Nice job Reid/Pelosi.Just as auto coverage is now mandatory in nearly all states, Baucus would require that all Americans get health insurance once the system is overhauled. Penalties for failing to do so would start at $750 a year for individuals and $1,500 for families. Households making more than three times the federal poverty level — about $66,000 for a family of four — would face the maximum fines. For families, it would be $3,800, and for individuals, $950.
Baucus would offer tax credits to help pay premiums for households making up to three times the poverty level, and for small employers paying about average middle-class wages. People working for companies that offer coverage could avoid the fines by signing up.
The fines pose a dilemma for Obama. As a candidate, the president campaigned hard against making health insurance a requirement, and fining people for not getting it.
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