'Blue Dog' Dems reach health care deal, but Utah's Matheson still balking

Washington » Health reform has a heartbeat in the House again after conservative Democrats struck a deal with party leaders Wednesday that would lower costs and ease requirements on small businesses.

But Rep. Jim Matheson, D-Utah, remains unsatisfied and, unless more changes are adopted, he plans to buck his party and vote against the bill this week in the House Energy and Commerce Committee.

"My most significant concerns," Matheson said, "have not been addressed by the deal."

His list of objections is similar to many Republican concerns. He said the proposal gives the federal government too much power and does too little to reform medical-malpractice claims.

Matheson is a member of the Blue Dog Democrats, a coalition of fiscal conservatives who have threatened to team with Republicans to kill the wide-ranging proposal.

Seven Blue Dogs sit on the commerce committee and four agreed to Wednesday's deal, enough to secure passage out of the panel. A full House vote won't take place until September at the earliest.

President Barack Obama welcomed the news, especially since his signature domestic issue has hit repeated roadblocks recently.

"I'm especially grateful," he said in a statement, "that so many members, including some Blue Dogs on the Energy and Commerce Committee, are working so hard to find common ground."

The accord was reached after House leaders and

White House officials participated in marathon negotiating sessions with members of the Blue Dog coalition. Matheson and others met with Obama at the White House last week.

As part of the deal, House leaders vowed to trim $100 billion from the price tag of the roughly $1 trillion plan. They agreed to allow doctors to negotiate the rates they would be paid by any government-created health-insurance plan instead of tagging the amounts to the lower-paying Medicaid schedule. And they agreed to make it easier for small businesses to avoid penalties if they do not offer health insurance to employees.

Matheson, who also announced plans to seek a sixth House term and forgo runs at governor or senator next year, said these were "steps in the right direction" on what is "the most complicated issue I'm going to work on in my career."

But Matheson maintains the proposal still falls short. "There are things we ought to do to improve this bill to create more efficiency and more participation on the state level."

He dislikes the government-sponsored health-insurance plan, known as a public option. He favors a state-based cooperative model, similar to rural electric companies. And even then, he adds, the co-op should be used only as a fallback for those who cannot obtain private insurance.

Matheson opposes the House proposal's federal health-insurance exchange in which consumers could shop for a plan. He prefers state-level organizations.

He also argues the federal government should give money to states willing to restrict medical-malpractice lawsuits.

Matheson promised to offer amendments on these issues during the hearings.

mcanham@sltrib.com