The Wonk Room

The Health Provisions In The Stimulus Compromsie

Details are still emerging about the $789 billion stimulus compromise, but here is what we’re hearing about the health care provisions:

- Maintained an additional $6.5 billion for medical research that was inserted at the insistence of Sen. Arlen Specter (R-PA)

- Split the difference on a formula for allocating a Medicaid funding increase to states. 65% of the funding would be doled out on an across-the-board, flat rate basis to each state, while 35% would be distributed based on increases in unemployment. Originally, the House had used a 50-50 formula, while the Senate preferred an 80-20 split.

- Adopted the House’s higher 65% subsidy for COBRA (the Senate had a 50% subsidy) but agreed in turn to drop its proposal to increase Medicaid coverage to help lower income individuals face the same insurance dilemma and can’t afford to pay even a subsidized COBRA payment.

The House will vote on the compromise on Thursday, and the Senate on Friday.