[Editor's Note: U.S. Rep. Jay Inslee (D-WA, 1) is in the thick of this fight. He's one of the liberal Democrats on the commerce committee. I've been trying to get his office to fill me in all day on the compromise. Inslee is, in fact, doing a town hall telephone call about the plan—tonight at 7:10 pm. The dial in number is 877-269-7289 and pin code is 13634. Meanwhile, take it away ObamaNerd...]


Blue Dog Compromise Update:  So the scheduled markup on the so-called "health care compromise" has been delayed, but House leaders say a committee vote is expected before week's end.

Apparently some liberals went apocalyptic on House Energy and Commerce Committee Chairman Waxman's ass when they heard specifics of the compromise with the 4 of the 7 Blue Dog Democrats on the committee. Those Blue Dogs, or more conservative Democratic Reps, had been balking at the proposed health care reform package.  What exactly was the compromise?

1. Cut $100 billion from the bill.  This brings the cost under $ 1 trillion.

2. Exempt small businesses with less than $500,000 in payroll expenses from the new employer mandate. This exempts about 86 percent of small businesses.

3. The most troubling to libs: Prevent the public option from using Medicare rates to reimburse providers.

4. Postpone a full floor vote until after the August recess (read: September).

The Medicare rate issue is causing ulcers for progressive Democrats who argue that the only way to keep the costs down is to have a "robust" public option that forces private insurers to compete with the lowest price possible—the Medicare reimbursement rate. Conservative Blue Doggers argue that the public option and private insurers should have a level playing field and negotiate similarly for the rate.

Guess who gets to negotiate that rate under this scenario?  HHS head Kathleen Tebelius.  Lucky gal.  And lucky for those on the public option when a Democrat's in charge.  Not so much for those on the public option when Republicans get their act together and elect a President in 2048.

Health Care Reform Fun Fact: Rep. Earl Pomeroy from North Dakota voted against original version of the bill in the House Ways and Means committee because North Dakota has some of an unusually low Medicare rates in the nation.  Yet another reason to move to North Dakota .