Reconciling Reconciliation

Nancy Pelosi says a new Obama health care plan will be ready soon. This is beginning to feel like the story will go on forever.
President Obama will soon propose a health care bill that will be "much smaller" than the House bill but "big enough" to put the country on a "path" toward health care reform, House Speaker Nancy Pelosi said Monday.
If they come up with a much smaller proposal, that would mean that both houses of congress would have to pass it fresh, wouldn't it? Or could it be that the senate won't have to pass the new bill, instead using reconciliation to pare it down?
Melody Barnes, a top Obama domestic policy adviser, did not dispute Pelosi's characterization of the new plan as smaller in scope -- and quite possibly in cost -- than either the House or Senate health care bills. "It's going to be matter of drawing on these different ideas and coming up with the right proposal," Barnes said in an exclusive interview with Fox. "That's what my colleagues are working on. That's what they're talking with Congress about. We'll see what it looks like when the proposal is sent forward."
Either way, it's not going to play well with the Peeps. We have to assume that the White House is expecting things to be bad for Democrats in the fall, so they don't think they can make it much worse by fully expressing the USSR tendencies.