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WSJOnline
By Greg Hitt And Janet Adamy
The House gave final passage Sunday to the Senate's health legislation on a climactic 219-to-212 vote, as Democrats muscled the measure through on the strength of the party's big majority. In the final roll call, no House Republican voted for the bill, and 34 Democrats voted no, many of them representing Republican-leaning districts.
A short while later, the House, voting 220 to 211, approved a companion bill making changes to the Senate bill, a measure necessary to attract support in the House. Those changes now head to the Senate, where action is expected this week. All Republicans voted against the companion bill, as did 33 Democrats.
The legislation will extend health coverage to 32 million Americans now without insurance, according to the Congressional Budget Office. It will mandate that almost every American carry health insurance-a provision that opponents are set to challenge in the courts. To help people get covered, the legislation expands Medicaid.
The CBO estimates the package will hold the federal budget deficit $143 billion lower over 10 years than it would otherwise be. Republicans called the estimate unrealistic.
Insurers will see the heaviest regulations, with new rules that dictate how much they can reap in profit and whom they must cover.
Under the legislation, consumers will see changes within months. Insurers won't be able to place lifetime limits on coverage. Children will be able to stay on their parents' insurance policies until their 26th birthday.
The bulk of the legislation wouldn't take effect until 2014. Once the tax credits and Medicaid expansion are in place, most Americans will be required to carry health insurance or pay a fee, topping out at either $695 a year or 2.5% of income.
Employers would have to provide affordable insurance or pay a penalty of up to $3,000 per worker. Those figures assume the Senate ultimately adopts the package of changes the House approved.
Tax increases needed to finance the program would hit a range of industries, from insurers to tanning services. Over the next decade, $108 billion in new fees will fall on insurers, drug makers and medical-device companies. Families earning more than $250,000 a year will pay a higher Medicare payroll tax, and see that tax expanded to investment income such as dividends. High-value insurance plans would be hit with a 40% tax starting in 2018.
-Louise Radnofsky and Amy Dockser Marcus contributed to this article.
To read further, visit The Wall Street Journal
Past Events
In October 2009, The Fedeli Group hosted an event in conjunction with Ernst and Young at the Inter-Continental Hotel. Over 800 guests listened to an expert panel including Congressman Steve LaTourette and Congressman Tim Ryan, as well as Dr. Toby Cosgrove, Cleveland Clinic Foundation, George Stadtlander, Medical Mutual of Ohio, and Mal Mixon of Invacare. The event provided a great deal of information on the recently passed reform bill.
During the Summit, the panel fielded questions about cost, compliance with the proposed legislation and likely challenges for employers and taxpayers. Covered by the Plain Dealer, many felt the Summit was the most comprehensive discussion on reform in the region.
The Fedeli Group is busy planning a follow up Healthcare Summit 2010 to review all the changes and advise our guests on what the new bill will mean. We are working on an impressive list of panelists and looking forward to communicating more details soon.
Keep your eyes open for the details in a future email!
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What's Next: Health Care Bill Timeline
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Year
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Legislative Change
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1st 90 Days
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People who previously had no coverage because of pre-existing conditions would have immediate access to high-risk pools.
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Within the first 6 months
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People who get sick cannot be denied coverage by insurance companies.
- Children with pre-existing conditions cannot be denied coverage.
- Insurers cannot impose lifetime caps on coverage
- People would be allowed to stay on their parent's plans until they turn 26 years old.
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Within 1 year
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A $250.00 rebate to Medicare Rx beneficiaries whose initial benefits ran out
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2011
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80% of premium dollars for individual and small plans must be spent on medical services.
- 85% of premium dollars for large group plans must be spent on medical services
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2013
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Medicare Payroll Taxes would be increased and expanded to include dividend, interest and other unearned income for single people earning more than $200,000 and joint filers making more than $250,000
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2014
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The subsidies would apply to people who do not qualify for Medicaid but still can't afford coverage.
The subsidies would help pay for private insurance coverage that would be sold in the new state-based insurance exchanges, scheduled to begin operation in 2014.
Premium subsidies would be available for individuals and families with incomes between 133 % and 400% of the poverty level, or $14,404 to $43,320 for individuals and $29,326 to $88,200 for a family of four.
The subsidies would be on a sliding scale. For example, a family of four earning 150% of the poverty level, or $33,075 a year, would have to pay 4% of its income, or $1,323 on premiums. A family with income of 400% of the poverty level would have to pay 9.5%, or $8,379.
In addition, if your income is below 400% of the poverty level, your out-of-pocket health expenses would be limited
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2018
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An excise tax of 40% would be imposed on high-end insurance policies
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2019
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Health insurance coverage would be expanded to 32 Million people
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How The Fedeli Group Can Help
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As this legislation becomes more clear, we will provide detailed outlines of the changes. We will create regular information updates to keep you informed. If you have an immediate need, please contact us. Also feel free to check the benefits section of our website for updates at www.thefedeligroup.com.
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