US House of Representatives Pass Health Care Reform Bill (3/22/2010)

On Sunday, March 21, 2010, the US House of Representatives passed Health Care Reform which now goes to the President to sign.

It is estimated the bill will cost $940 billion over ten years, but would reduce the deficit by $143 billion over the first ten years.  Here are some highlights of the bill:

• Coverage:  The bill will expand coverage to 32 million Americans who are currently uninsured.
• Health Insurance Exchanges:  State-based exchanges with subsidies will be available to individuals and families with income between the 133% and 400% of poverty level.  Separate exchanges would be created for small businesses to purchase coverage beginning in 2014.  Illegal immigrants will not be allowed to buy health insurance in the exchanges.
• Subsidies:  Individuals and families who make between 100% and 400% of the Federal Poverty Level (FPL) will be eligible to receive premium credits on a sliding scale.  (FPL for a family of four is currently $22,050).
• Paying for the Plan: 
  
  • Medicare Payroll tax on investment income, beginning in 2012 will be expanded to include unearned income.  That will be a 3.8% tax on investment income for families making more than $250,000 per year ($200,000 for individuals).
  • Excise Tax:  beginning in 2018, insurance companies will pay a 40% excise tax on "Cadillac" high-end insurance plans worth over $27,500 for families ($10,200 for individuals).  Dental and vision plans are exempt.
  • Tanning Tax:  10% excise tax on indoor tanning services.
• Medicaid:  Expands Medicaid to include 133% of FPL and requires states to expand Medicaid to include childless adults starting in 2014.  Federal government pays 100% of costs for covering newly eligible individuals through 2016.  Illegal immigrants are not eligible for Medicaid.
• Insurance Reforms:  Six months after enactment, insurance companies can no longer deny children coverage based on preexisting conditions.  Starting in 2014 insurance companies cannot deny coverage to anyone with preexisting conditions.  Insurance companies must allow children to stay on their parent's insurance plans through age 26.
• Individual Mandate:  In 2014, everyone must purchase health insurance or face a $695 annual fine.  There are some exceptions for low-income individuals.
• Employer Mandate:  Employers with more than 50 employees must provide health insurance or pay a fine of $2000 per worker each year if any worker receives federal subsidies to purchase health insurance.  Fines applied to entire number of employees minus some allowances.

As more information becomes available on the provisions of the Bill, FlexChecks will keep you informed. 

US House of Representatives Pass Health Care Reform Bill (3/22/2010)

On Sunday, March 21, 2010, the US House of Representatives passed Health Care Reform which now goes to the President to sign.

It is estimated the bill will cost $940 billion over ten years, but would reduce the deficit by $143 billion over the first ten years.  Here are some highlights of the bill:

• Coverage:  The bill will expand coverage to 32 million Americans who are currently uninsured.
• Health Insurance Exchanges:  State-based exchanges with subsidies will be available to individuals and families with income between the 133% and 400% of poverty level.  Separate exchanges would be created for small businesses to purchase coverage beginning in 2014.  Illegal immigrants will not be allowed to buy health insurance in the exchanges.
• Subsidies:  Individuals and families who make between 100% and 400% of the Federal Poverty Level (FPL) will be eligible to receive premium credits on a sliding scale.  (FPL for a family of four is currently $22,050).
• Paying for the Plan: 
  
  • Medicare Payroll tax on investment income, beginning in 2012 will be expanded to include unearned income.  That will be a 3.8% tax on investment income for families making more than $250,000 per year ($200,000 for individuals).
  • Excise Tax:  beginning in 2018, insurance companies will pay a 40% excise tax on "Cadillac" high-end insurance plans worth over $27,500 for families ($10,200 for individuals).  Dental and vision plans are exempt.
  • Tanning Tax:  10% excise tax on indoor tanning services.
• Medicaid:  Expands Medicaid to include 133% of FPL and requires states to expand Medicaid to include childless adults starting in 2014.  Federal government pays 100% of costs for covering newly eligible individuals through 2016.  Illegal immigrants are not eligible for Medicaid.
• Insurance Reforms:  Six months after enactment, insurance companies can no longer deny children coverage based on preexisting conditions.  Starting in 2014 insurance companies cannot deny coverage to anyone with preexisting conditions.  Insurance companies must allow children to stay on their parent's insurance plans through age 26.
• Individual Mandate:  In 2014, everyone must purchase health insurance or face a $695 annual fine.  There are some exceptions for low-income individuals.
• Employer Mandate:  Employers with more than 50 employees must provide health insurance or pay a fine of $2000 per worker each year if any worker receives federal subsidies to purchase health insurance.  Fines applied to entire number of employees minus some allowances.

As more information becomes available on the provisions of the Bill, FlexChecks will keep you informed.