The AP (1/29, Werner) reports that "President Barack Obama's healthcare appeal failed to break the congressional gridlock Thursday." Now Democrats face the "grim reality" of a "political nightmare," according to the AP, "getting clobbered for voting last year for ambitious, politically risky bills, yet having nothing to show for it in November." While "congressional leaders...insisted healthcare would get done," other "Democrats saw a problem with no clear solution."

 

        The New York Times (1/29, A11, Herszenhorn, Pear) reports that "Democratic leaders in Congress voiced resolute optimism on" the passage of healthcare reform, "but legislative leaders conceded that they did not have an immediate strategy for advancing a healthcare measure and described their time frame as open-ended." House Speaker Nancy Pelosi (D-CA) again mentioned the strategy of breaking the legislation into smaller bills, the first part of which "could be the proposal to eliminate the exemption from federal antitrust law that health insurance companies have long enjoyed."

 

        CNN (1/29) also notes that "one of the bills could include a measure to repeal the antitrust exemption for insurance companies."

 

        According to AFP (1/29), "Pelosi vowed to proceed with the embattled legislation 'on many fronts' and described a strategy that would see lawmakers approve small pieces of the bill 'on the side' while work proceeds on crafting a sweeping compromise measure."

 

        Politico (1/29, Brown) reports, however, that while "Democrats in Congress said all the right things Thursday" on health reform, "listen more closely, and it's clear healthcare is already falling to the back of the legislative line, behind the Democrats' feverish new focus on jobs and the economy." For instance, "Healthcare reform didn't even make the cut when New York Sen. Chuck Schumer ticked off the party's priorities Thursday."

 

        Likewise, the Washington Times (1/29, Haberkorn) reports that Democrats "shelved plans to push through a major healthcare overhaul, casting aside President Obama's top legislative goal, which has bedeviled congressional Democrats for more than a year." The Times notes the Democrats "put a positive spin on it."

 

        CQ Today  notes that Pelosi expects the smaller-scale healthcare legislation to reach the House floor "before the chamber leaves for its Presidents Day recess on Feb. 11," according to aides. "The legislation, which may consist of more than one bill, will include proposals that can win quick majority approval. But they would not be a substitute for the broad healthcare overhaul, which has stalled in prolonged negotiations between top House and Senate Democrats."

 

        Bloomberg News (1/29, Rowley) reports that using budgetary reconciliation to pass the bill is still a possibility. "House Speaker Nancy Pelosi signaled a readiness to use" reconciliation, according to Bloomberg, but "Senate Democratic leaders declined to say if they'd be willing to use the maneuver."

 

        Hatch says using reconciliation would start a "war" between parties. The Salt Lake Tribune (1/29, Canham) reports that Sen. Orrin Hatch (R-UT) "threatened an all-out political "war' and promised a new high in partisan tensions if Democrats employ" budget reconciliation to pass the healthcare reform bill. Sen. Hatch said Democrats "haven't acted in good faith on this, nor do I expect that they will. ... I expect them to go to reconciliation." He warned, however, "that using reconciliation would be 'one of the worst grabs for power in the history of the country' that would permanently impact relations between the two parties."