This was ostensibly a vote on a motion to table (kill) an amendment by Sen. Orrin Hatch (R-UT) that would have exempted medical devices intended for soldiers and veterans from a 2.3% excise tax. The measure Hatch sought to amend was a “companion bill” making a number of changes to health care reform legislation already signed into law by President Obama. The underlying context was that Republicans were trying to attach amendments to the companion bill in order to send it back the House, where it had passed by a narrow margin. CNN reported that Republicans had chosen to offer a slew of amendments in order to “undermine the measure,” while the Associated Press characterized the amendments as “a final drive to thwart President Barack Obama's health care remake.” This was the last in a series of three votes on amendment dealing with a tax on medical device companies.
Hatch urged senators to support his amendment: "My amendment would prevent this new tax from raising costs or hurting access for American soldiers and veterans…We need to protect our wounded warriors who rely on these medical devices for recovery and to live a normal life."
Sen. Max Baucus argued the amendment was misguided, and made a motion to table it: "It [the amendment] seeks to exempt a sympathetic group of individuals from the excise tax on medical device manufacturers. The amendment is misplaced. We already exempt retail purchases of medical devices, such as Band-Aids, glasses--all those kinds of items. The tax only applies to large manufacturers. The government negotiates with the large manufacturers. The government is large enough to exact a better price. It does not pass that on to individuals, not on our military, not on our vets who already receive prescribed health care coverage."
After the House and Senate both passed their respective health care reform bills, the two chambers had intended to reconcile those two bills into a final package. After the House and Senate passed that final package, it would have been sent to President Obama, who would have signed it into law. Sen. Scott Brown (R-MA), however, won a special election to replace the late Sen. Ted Kennedy (D-MA) before the final health care bill could be brought up for a vote. Brown's victory gave Republicans 41 votes in the Senate, leaving Democrats with 59 members – one vote short of the 60 votes they needed to defeat a unanimous Republican filibuster against the final health care bill.
In order to pass comprehensive health care legislation without a 60-vote majority in the Senate, Democratic leaders devised a plan in which the House would pass the Senate health care bill (H.R. 3590), thereby enabling the president to sign it into law. The House would then pass a separate companion bill (H.R. 4872) to make changes to the Senate health measure under a process known as "budget reconciliation." Bills considered under budget reconciliation cannot be filibustered under Senate rules. This process allowed the House to make changes to Senate-passed health care legislation without sending the entire health bill back to the Senate, where it could have been filibustered indefinitely. The companion bill incorporated changes to the Senate health care legislation desired by House Democrats. The House passed the companion measure, and sent it to the Senate, where Democratic leaders hoped to defeat all amendments -- thereby avoiding a second vote in the House on a substantively changed bill; a vote that Democrats might have lost given the already tight margin when it was voted on the previous week.
The Senate tabled (killed) the Hatch amendment by a vote of 54-44. 54 Democrats voted "yea." All 40 Republicans present and 4 Democrats voted "nay." As a result, the Senate rejected an amendment Democratic leaders feared could have torpedoed the entire companion health care bill and would have exempted medical devices intended for soldiers and veterans from a 2.3% excise tax.