The committee, which has worked on putting together a bipartisan healthcare reform bill, will drop the controversial provision after being derided as "death panels" to encourage euthanasia by conservatives.
"On the Finance Committee, we are working very hard to avoid unintended consequences by methodically working through the complexities of all of these issues and policy options," Sen. Chuck Grassley (R-Iowa) said in a statement. "We dropped end-of-life provisions from consideration entirely because of the way they could be misinterpreted and implemented incorrectly."
The Finance Committee is the only congressional committee to not report out a preliminary healthcare bill before the August congressional recess, but is expected to unveil its proposal shortly after Labor Day.
Grassley said that bill would hold up better compared to proposals crafted in the House, which he asserted were "poorly cobbled together."
"The bill passed by the House committees is so poorly cobbled together that it will have all kinds of unintended consequences, including making taxpayers fund health care subsidies for illegal immigrants," Grassley said. The veteran Iowa lawmaker said the end-of-life provision in those bills would pay physicians to "advise patients about end of life care and rate physician quality of care based on the creation of and adherence to orders for end-of-life care."
"Maybe others can defend a bill like the Pelosi bill that leaves major issues open to interpretation, but I can't," Grassley added.