From the Examiner:

The death of Sen. Edward Kennedy strips the Democrats of the 60-vote supermajority they enjoyed for a mere 51 days. But the liberal icon’s demise may help pass a watered-down version of his health legislation.
The loss of Kennedy leaves Senate Democrats with 59 votes, one short of the 60 they need to block a certain filibuster from Republicans. With the future of Kennedy’s vacant seat up in the air, Democratic leaders will now have justification for passing health care reform in the Senate with just 51 votes through the use of a parliamentary maneuver called reconciliation.
Such a move would force the Democrats to break the bill up into separate, smaller bills, rather than the sweeping reform Kennedy sought.