Update: Schmuck Schumer’s public option also fails to pass Finance Committee. Just how many of these public options are there? I wonder if Olympia Snowe will commit political suicide now by bringing up the trigger amendment?

From the New York Times Senator John D. Rockefeller IV’s public option fails in Finance Committee:

WASHINGTON — After a half-day of animated debate, the Senate Finance Committee on Tuesday rejected efforts by liberal Democrats to add a government-run health insurance plan to major health care legislation, dealing the first official setback to an idea that many Democrats, including President Obama, say they support.

All of the other versions of the health care legislation advancing in Congress — a bill approved by the Senate health committee and a trio of bills in the House — include some version of the government-run plan, or public option.

But the Finance Committee chairman, Senator Max Baucus, Democrat of Montana, long ago removed it from his proposal because of stiff opposition from Republicans who call the public plan a step toward “socialized medicine.”

The committee on Tuesday afternoon voted, 15 to 8, to reject an amendment proposed by Senator John D. Rockefeller IV, Democrat of West Virginia, to add a public option called the Community Choice Health Plan, an outcome that underscored the lack of support for a government plan among many Democrats.

Mr. Baucus voted no, as did Senators Thomas R. Carper of Delaware, Kent Conrad of North Dakota, Blanche Lincoln of Arkansas, , and Bill Nelson of Florida, joining all 10 Republicans in opposition.

Senator Charles E. Schumer, Democrat of New York, who voted in favor of the proposal, said supporters of the public option would keep on fighting. He has offered a separate amendment to establish such an option.

“We are going to keep at this and at this and at this until we succeed, because we believe in it so strongly,” he said.

Advocates of a public plan say it would provide crucial competition for private insurers and that the larger goals of the legislation, to extend coverage to more than 30 million uninsured Americans and to slow the steep rise in health care costs, cannot be achieved without it.

The debate came as the Finance Committee resumed debate over the health care bill after a three-day weekend because of Yom Kippur, the Jewish Day of Atonement.

After the vote on Mr. Rockefeller’s proposal, Senator Charles E. Schumer, Democrat of New York, was scheduled to put forward his own public option amendment and it, too, was expected to be defeated.

In the emotionally charged debate, Mr. Rockefeller railed against the practices of private insurers, who he suggested were largely preying on a defenseless American public. “They’re getting away with terrible things,” he said.

But Senator Charles E. Grassley of Iowa, the senior Republican on the Finance Committee, stepped in to voice his party’s fierce opposition to the idea of government-run insurance.

“A government run plan will ultimately force private insurers out of business,” Mr. Grassley said, adding that supporters of the public option were trying to open a back door toward a fully government-run, or single-payer, health system like those in Canada or England.

“Public option is a step toward a completely government run plan that they are hoping for,” Mr. Grassley said.

And he rejected assertions by Democrats, including Mr. Rockefeller, that the public plan would compete fairly because it would have to follow the same rules as private insurers.

“The federal government will not only be running the plan, it will also be running the market in which it competes with the private plans and that doesn’t sound like a level playing field to me,” Mr. Grassley said.

Democrats quickly rose up to answer the charges, including Mr. Schumer, who challenged Mr. Grassley to spell out his views on Medicare, the government insurance plan for Americans over age 65 and for the disabled.

“I just want to know what you think of Medicare, which is a much more government-run program,” Mr. Schumer said.

“I think that Medicare is part of the social fabric of America just like Social Security is,” Mr. Grassley said. “To say that I support it is not to say that it’s the best system that it could be.”

“But it is a government-run plan,” Mr. Schumer shot back.

Mr. Grassley, a veteran Senate debater, insisted that Medicare did not pose a threat to the private insurance industry. “It’s not easy to undo a Medicare plan without also hurting a lot of private initiatives that are coupled with it,” he said.

Mr. Schumer pounced. “You are supportive of Medicare,” he said. “I just don’t understand the difference. That’s a government-run plan and the main knock you have made on Senator Rockefeller’s amendment, and I am sure on mine, is that it’s government-run.”

The efforts by Mr. Rockefeller and Mr. Schumer to add a public plan to the bill were really just a dress rehearsal for a fuller battle that will play out on the Senate floor in the weeks ahead.

Senate Democratic leaders, however, do not believe there will be sufficient support to add the public option to the bill.

Aides to the majority leader, Senator Harry Reid, Democrat of Nevada, say that he will not include a provision for the public option when he combines the measures coming out of the finance and health committees.

Mr. Rockefeller, Mr. Schumer and other supporters of a government-run plan will bring floor amendments trying once again to add it to the legislation.

And even when the debate over the public option is taken up on the Senate floor, most likely it will not be finished.

There is wider support for a government-run insurance plan in the House, where the Democratic caucus is more liberal. And if the House bill includes a public option, as Speaker Nancy Pelosi has indicated, the issue will ultimately be decided in a conference proceedings to reconcile the Senate and House bills.

As an alternative, Mr. Baucus included in his bill a proposal to create private, nonprofit health insurance cooperatives to compete with private insurers.

The Congressional Budget Office has questioned whether the cooperatives would really have much effect. And there are Democrats and Republicans on the Finance Committee who have proposed amendments that would strip the cooperative provisions.

The main architect of that proposal, Senator Kent Conrad, Democrat of North Dakota, said during the committee debate that it would provide “strong not for profit competition to the private insurers.” But he warned that hospitals in his home state would be devastated by Mr. Rockefeller’s proposal, which would initially tie the public plan’s payment rates to the rates paid by Medicare.

Many hospitals, doctors and other health care providers say Medicare rates are too low.

Mr. Conrad urged his colleagues to consider his alternative,. “We have gotten locked in a very sterile debate ,” he said.

More from The Hill: Rockefeller’s public option fails in Senate Finance Committee

Now it’s time to kill co-operatives which are nothing more than a Trojan Horse for a public option.

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Redstate titles the post Even the grizzled Senate Veterans Found this Amazing — Vaporbill:

Vaporbill is a bill that has no legislative language but that is brought up before the Senate and cloture is invoked on a 100% blank bill.

I am not kidding.

One of the most powerful Senate staffers briefed a group of us on it yesterday morning. It is the next logical step to the HELP Committee’s mark-up of a bill not yet written. Why not take a bill to the Senate floor that does not exist?

Just wait till the READ-THE-BILL first crowd gets a hold of Vaporbill.

This is exactly what the Democratic Senate Leadership has in mind. If you were wondering just how-out-of-touch-Congress-could-get — well, now you know: Vaporbill.

Dan Perrin of Redstate then informs readers how the process would play out (via the Heritage Foundation).

Right now, the Senate Finance Committee is in the midst of marking up health care reform “legislation.” Due to Senate procedure, what they are actually marking up is a 200+ page conceptual framework of the actual legislation, not a real bill. That means that not only has no Senator even read the bill but, there is a high probability that the bill hasn’t even been written yet. If the Committee sticks to their artificial deadline of completing work by this Friday then they would have passed a conceptual document reforming the nation’s health care system, spending trillions, without ever seeing an estimated 1,500 pages of legislation, which may or may not be written.

The current plan is to start debate on Obamacare as early as next week under the following four-step scenario:

STEP ONE: The Senate Finance Committee will finish work on the marking up of Senator Max Baucus’ (D-MT) conceptual framework for legislation by this Friday. Baucus has not unveiled final legislation and, according to the Associated Press, he added some new language to the mark up today. AP reports that “under pressure from fellow Democrats, the chairman of the Senate Finance Committee decided to commit an additional $50 billion over a decade toward making insurance more affordable for working class families.”

Senators have not been provided any real legislation and are offering amendments this week to Baucus’ 200+ page outline. It is expected that at the end of the process the Senate Finance Committee may produce a bill longer than the 1,000 page House bill that proved so controversial over the August recess. Many Senators are upset that they don’t have final language for a bill, yet still they sit in a Committee Hearing Room this week marking up a draft document that is not in the form of legislative language. The plan is to have this document voted out of the Senate Finance Committee by Friday.

STEP TWO: Next, Senate Majority Leader Harry Reid will take the final product of the Senate Finance Committee and merge it with the product of the Senate Health, Education, Labor & Pensions (HELP) Committee. This was the late Senator Kennedy’s (D-MA) bill, introduced by Senator Tom Harkin (D-IA), which passed the HELP Committee on July 15, 2009 on a party line vote. Remember, most Senators will still not know what they voted for in the Finance Committee.

STEP THREE: Senator Reid will then move to proceed to H.R. 1586, a bill to impose a tax on bonuses received by certain TARP recipients. This bill was the bill passed by the House in the wake of the AIG bonus controversy and is currently sitting on the Senate Legislative Calendar. Reid will move to proceed, and he will need 60 votes to act on this bill. After the motion is approved, he will then offer a complete substitute bill purportedly including the combined Senate HELP and Finance Committee products. This means that the entire health care reform effort will be included as an amendment to a TARP bill that has been collecting dust in the Senate for months.

STEP FOUR: For this strategy to work, the proponents would need to hold together the liberal caucus of 57 Democrats, 2 Independents (Senators Joe Lieberman of Connecticut and Bernie Sanders of Vermont), and a potential new member replacing the late Senator Kennedy. This scenario would most likely be implemented after the Massachusetts state legislature gives Governor Deval Patrick the power to appoint a new Senator and that Senator is seated by the Senate. According to CQ, the state legislature may pass a bill and present it to Governor Patrick by next week.

Once the Senate passes a bill and sends it to the House, all the House would have to do is pass the bill, without changes, and President Obama will be presented with his health care reform measure thereby transforming within a few weeks 1/6th of the US economy. If this plan does not work, the Senate and House Leadership may consider using reconciliation to pass the legislation. For a more detailed explanation of the reconciliation scenario, please see the Heritage Foundation’s Fact Sheet on Reconciliation here or a handy guide on Reconciliation published in Human Events earlier today.

Does this sound like a transparent, bipartisan and effective way to change the way millions of Americans get their health care? Of course not.

Larry Hunter of the Social Security Institute has this to say on the matter:

Now the VaporBill piece is making the rounds of the Internet

I have no doubt they may need to do a little striking and inserting in lieu thereof for procedural reasons – I’m not enough of a Senate parliamentarian to know whether they will or not but for the life of me, I can’t see any strategic value in this rigmarole. (Please tell me if I’m wrong so we can light up the Internet.) It surely doesn’t give anyone anywhere to hide because folks like me and the grass roots will cut them a new one with it. My favorite link in the whole chain in the five-step strategy comes in un-enumerated Step 5 in the penultimate paragraph:

“Once the Senate passes a bill and sends it to the House, all the House would have to do is pass the bill, without changes, and President Obama will be presented with his health care reform measure thereby transforming within a few weeks 1/6th of the US economy.”

This casual statement reminds me of my favorite New Yorker cartoon of all times:

If this is an even remote possibility – and I have my doubts due to the monumental backlash that would occur against Democrats in the Senate and House, as well as Obama, then the grassroots needs to contact their Senators and let them know they face political extinction not only if they support this overt disrespect of a legislative process that will affect 1/6 of the nations economy and usurp our personal liberties, but also if they support in any form or fashion using reconciliation to jam this down our throats. Burn up the phone lines as well as the faxes. However, do not take your eye off the ball. As far as I know, this can just be a diversionary tactic. Don’t get me wrong, this needs to be addressed with the weight of the Tea Party movement, but not at the expense of other and more realistic ways of jamming ObamaCare down our throats. Say no to RINOCare and say no to reconciliation.

In other news and opinion:

Videos: Medicare Advantage consumers will lose benefits

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Harry Reid gives GOP direct warning on healthcare; I give Harry Reid a direct warning: start looking for outplacement services

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