This failed in the Senate, primarily because it is totally unfunded. The cost of the bill is estimated at $200 Billion or so to reverse the “Sustainable Growth” of Medicare which was established in the 1997 Deficit Redution Act. Here is an article with more detail from the New York Times.
There’s been some debate as to whether or not this amount should be included in the total cost of Health Care Reform. I’m undecided on this point. However, I think the larger point is that this reinforces the point that the Federal Government is totally inept (Democrats and Republicans) in managing the cost of entitlements. The fact that the government is “Banking” on their ability to rein in $500 Billion in Medicare Spending over 10 years makes me wonder if they’ll have the backbone to make the tough calls or simply add cost overruns to the deficit in future years. . .