The Medicare end-of-life planning provision that 2008 Republican vice presidential nominee Sarah Palin said was tantamount to “death panels” for seniors is staying in the latest Democratic health care bill unveiled Thursday.

The provision allows Medicare to pay for voluntary counseling to help beneficiaries deal with the complex and painful decisions families face when a loved one is approaching death.

For years, federal laws and policies have encouraged Americans to think ahead about end-of-life decisions, and make their wishes known in advance through living wills and similar legal documents. But when House Democrats proposed this summer to pay doctors for end-of-life counseling, it touched off a wave of suspicion and anger. Prominent Republicans singled it out as a glaring example of government overreach.

Sen. Charles Grassley, R-Iowa, at the time a lead negotiator on health care legislation, told constituents at a town hall meeting they had good reason to question the proposal.

“I don’t have any problem with things like living wills, but they ought to be done within the family,” he said. “We should not have a government program that determines you’re going to pull the plug on grandma.”

Thursday, the sponsor of the provision said the barrage of criticism may have actually helped.

“There is nothing more basic than giving someone the option of speaking with their doctor about how they want to be treated in the case of an emergency,” said Rep. Earl Blumenauer, D-Ore. “I think the outrageous and vindictive attacks may have backfired to help raise awareness about this problem, which is why it’s been kept in the bill.”

The legislation would allow Medicare to pay for a counseling session with a doctor or clinical professional once every five years. The bill calls for such sessions to be “completely” voluntary, and prohibits the encouragement or promotion of suicide or assisted suicide.

The counseling provision is supported by doctors’ groups and AARP, the seniors’ lobby. It was not included in health care bills passed by two Senate committees.

HONOLULU – One year ago today, Senator Barack Obama was fighting to win the all-important Iowa caucuses, holding multiple campaign stops across the state. Then the underdog, Mr. Obama capped off a busy day with a nighttime rally in Ames, where he correctly predicted 2008 would be the year of the Democrat.

“Democrats have been waiting for 2008 for awhile and it’s just about here – it is just about here,” he told a crowd of about 1,000 on the campus of the University of Iowa on the cold December night. “Thank you so much, all of you, for taking the time to help celebrate, help ring in what is going to be an outstanding year for Democrats and an outstanding year for America,” he continued before he shared then-breaking news that he led Hillary Clinton in the latest Des Moines Register poll. “We might just pull this thing off, Iowa!”

Eager for publicity, the Illinois senator even took the time to share his plans to ring in the new year before an interview with FOX News’ Major Garrett.

This year, President Elect Obama is planning on staying out of the media spotlight as he enjoys the final day of his Hawaiian vacation. A transition aide expects Mr. Obama to stay at his Kailua rental home and ring in 2009, the first year with a President Obama, with friends and family.

No word on any resolutions, but last year he told reporters that other than winning Iowa, “I usually try not to make too many unrealistic resolutions. I try to make simple ones. I try to be a better husband, I try to be a better father. To be on time so that I don’t make [incoming Press Secretary Robert] Gibbs nervous.”