Note: This is a VERY LONG POST. I'll give everyone a couple of days to read it!
The new health care bill has not only sparked debate, but threats, bricks thrown through windows, and white powder went to legislators, among other things. Open the opinion page of any paper- local or national- and you can read citizen’s fiercely defending both sides.
But what is going to be the effects of the bill? Without the rhetoric, without the political bias, what is actually going to happen?
Starting this year, the following measures are going to take place-
Health insurance can NOT be denied to children with pre-existing conditions.
Health insurance carriers can no longer place a lifetime dollar limit on coverage.
Health insurance carriers can no longer cancel coverage BECAUSE someone gets sick.
Parents will be able to keep children on their policies until their 26.
Eventual measures include-
Health insurance carriers can no longer deny coverage to anyone because of pre-existing conditions.
Health insurance carriers would be prohibited from charging more for people with health care problems.
Health insurance carriers would be prohibited from charging more for women.
Effect on individual citizens-
When the final parts of the bill take effect in 2014, Americans will be REQUIRED BY LAW to buy health insurance. There will be special exemptions for low-income (surprise, surprise). There will be penalties for non-compliance. First year fine (2014)- $95 or 1% of income, whichever is greater. Penalty will rise over time to $695 or 2% of income, whichever is greater. If a person cannot find a policy that cost less than 8% of their income, they would be exempt from the fine- or required to buy the “catastrophic coverage only” policies allowed to people under 30.
Sick children- there is already debate over whether the “can NOT be denied to children with pre-existing conditions” refers to children already covered by insurance (but not covered for that particular condition) or ones who are trying to apply for insurance. The White House has already stated that they will release clarifying regulations making it clear that ALL children, currently covered or not, will be protected from being denied coverage.
Seniors- there is no PROJECTED effect on social security benefits, despite some scare stories to the contrary. However, there will be cuts in the Medicare Advantage programs (which the government partially subsidizes, and helps some seniors have lower out-of-pocket cost for prescription drugs). The “doughnut hole” in the Part D plan will eventually be closed. Some preventive care will now be provided.
Uninsured people with medical problems- immediate implementation of a high-risk pool to provide subsidies and/or coverage to these individuals. They will gradually be absorbed into the larger health care plan when all the effects of the bill come into effect in 2014.
Increase in Medicare tax for some. Tax breaks for others. (Based on income). Increased tax on investments for higher-income people. Tax on those who tan (business will be taxed, probably passed onto consumers).
Effect on states-
Part of the effect of covering more low-income people is that they are going to be put on the Medicaid rolls of the states. Individuals/families that make less than 133% of the federal poverty level will now qualify for Medicaid. Medicaid is partially paid by the federal government, and partially funded by the individual states. The funding varies. The rules for Medicaid vary from state to state. 13 states (as of this writing) are already in the process of suing the federal government, claiming the health care plan is unconstitutional. (The suing has nothing to do with Medicaid). The reconciliation bill states that the FEDERAL government will cover 100% of additional expenses caused by expanded coverage from 2014-2016, and 90% starting in 2020. (Don’t even ask me how they’re going to determine what is caused by the bill and what is not- expect some serious fights.)
Medicaid beneficiaries already have trouble finding doctors who accept Medicaid. The low pay- which is only a percentage of what most insurance companies pay for the same check-ups and procedures- cause many doctors to refuse Medicaid patients.
There are going to be “state-run insurance exchanges.” If someone is between 133% and 400% of the federal poverty level, they will be eligible for subsidies. Individuals who lose coverage can move “seamlessly” into state run insurance exchange. These state-run insurance exchanges are, obviously, going to vary state by state.
Effect on businesses-
A tax on tanning is going to be put into effect to help offset the costs of the health care plan. Tanning businesses will be directly hit by this.
Tax benefits to companies with less than 25 employees that get and keep coverage for their employees.
Large companies have already announced that their expenses will be higher this year. This is due to the fact that the government currently provides a subsidy if they provide their seniors with prescription drug coverage. This subsidy is going to be cut to a smaller amount. Companies say they “expect” that they will slowly cut drug coverage, moving more seniors to the Medicare Drug Coverage.
A fine for not providing coverage or not providing adequate coverage to employees. Employers with 50 employees or more- for each employee that receives a federal subsidy for insurance (aka- basically means if you don’t provide them insurance), you will be fined $2,000 per year. Again, for each employee. Employers who provide “pricier” plans will be- charged a 40% tax on the excess premium over a certain amount- or- pay a different amount, based on state exchange rates, for the employee who chooses to use the state exchange instead of the employer offered coverage.
If you have less than 50 employees, you’re in the clear (for now), according to the FEDERAL BILL.
Effect on insurance companies-
Give me a break. Look at it logically. Government is going to be providing health care for many, many people. Government can force doctors/hospitals/nurses to take less. Insurance companies must charge more. Can’t charge more. Must close doors. Bye, bye. (Written at 3rd grade level for those who are confused about the concept of “capitalism” and “competition”.)
Effect on doctors/nurses/hospitals-
Proposed pay increases for doctors and other health care providers who provide services to those of Medicare are planned to be cut (but no one knows to what levels or by how much).
2018- Reduction in Medicare payments to hospitals, home health agencies, nursing homes, etc.
(Possible future problems- shortage of health care workers. Can doctors afford medical malpractice insurance with reduced fees? Will they have to close their doors?)
Effect on drug companies-
Drug companies, medical device makers, and insurance companies will now be paying fees that projected to help offset the cost of the new health care bill.
Sources:
http://www.nytimes.com/2010/03/22/your-money/health-insurance/22consumer.html
http://www.ctemploymentlawblog.com/2010/03/articles/legislative-issues/what-passage-of-the-health-care-bill-means-for-employers/
Various articles on:
CNN.com, including: http://www.cnn.com/2010/POLITICS/03/25/health.care.main/index.html, http://www.cnn.com/2010/POLITICS/03/26/health.care.subsidies/index.html.
FoxNews articles, including: http://www.foxnews.com/politics/2010/03/27/republicans-hatched-idea-obamas-health-insurance-mandate/
MSNBC.com, including: http://www.msnbc.msn.com/id/36050884/ns/politics-health_care_reform/, http://www.msnbc.msn.com/id/36044366/ns/health-health_care/, http://www.msnbc.msn.com/id/35999823/ns/politics-health_care_reform/,
Logic
The new health care bill has not only sparked debate, but threats, bricks thrown through windows, and white powder went to legislators, among other things. Open the opinion page of any paper- local or national- and you can read citizen’s fiercely defending both sides.
But what is going to be the effects of the bill? Without the rhetoric, without the political bias, what is actually going to happen?
Starting this year, the following measures are going to take place-
Health insurance can NOT be denied to children with pre-existing conditions.
Health insurance carriers can no longer place a lifetime dollar limit on coverage.
Health insurance carriers can no longer cancel coverage BECAUSE someone gets sick.
Parents will be able to keep children on their policies until their 26.
Eventual measures include-
Health insurance carriers can no longer deny coverage to anyone because of pre-existing conditions.
Health insurance carriers would be prohibited from charging more for people with health care problems.
Health insurance carriers would be prohibited from charging more for women.
Effect on individual citizens-
When the final parts of the bill take effect in 2014, Americans will be REQUIRED BY LAW to buy health insurance. There will be special exemptions for low-income (surprise, surprise). There will be penalties for non-compliance. First year fine (2014)- $95 or 1% of income, whichever is greater. Penalty will rise over time to $695 or 2% of income, whichever is greater. If a person cannot find a policy that cost less than 8% of their income, they would be exempt from the fine- or required to buy the “catastrophic coverage only” policies allowed to people under 30.
Sick children- there is already debate over whether the “can NOT be denied to children with pre-existing conditions” refers to children already covered by insurance (but not covered for that particular condition) or ones who are trying to apply for insurance. The White House has already stated that they will release clarifying regulations making it clear that ALL children, currently covered or not, will be protected from being denied coverage.
Seniors- there is no PROJECTED effect on social security benefits, despite some scare stories to the contrary. However, there will be cuts in the Medicare Advantage programs (which the government partially subsidizes, and helps some seniors have lower out-of-pocket cost for prescription drugs). The “doughnut hole” in the Part D plan will eventually be closed. Some preventive care will now be provided.
Uninsured people with medical problems- immediate implementation of a high-risk pool to provide subsidies and/or coverage to these individuals. They will gradually be absorbed into the larger health care plan when all the effects of the bill come into effect in 2014.
Increase in Medicare tax for some. Tax breaks for others. (Based on income). Increased tax on investments for higher-income people. Tax on those who tan (business will be taxed, probably passed onto consumers).
Effect on states-
Part of the effect of covering more low-income people is that they are going to be put on the Medicaid rolls of the states. Individuals/families that make less than 133% of the federal poverty level will now qualify for Medicaid. Medicaid is partially paid by the federal government, and partially funded by the individual states. The funding varies. The rules for Medicaid vary from state to state. 13 states (as of this writing) are already in the process of suing the federal government, claiming the health care plan is unconstitutional. (The suing has nothing to do with Medicaid). The reconciliation bill states that the FEDERAL government will cover 100% of additional expenses caused by expanded coverage from 2014-2016, and 90% starting in 2020. (Don’t even ask me how they’re going to determine what is caused by the bill and what is not- expect some serious fights.)
Medicaid beneficiaries already have trouble finding doctors who accept Medicaid. The low pay- which is only a percentage of what most insurance companies pay for the same check-ups and procedures- cause many doctors to refuse Medicaid patients.
There are going to be “state-run insurance exchanges.” If someone is between 133% and 400% of the federal poverty level, they will be eligible for subsidies. Individuals who lose coverage can move “seamlessly” into state run insurance exchange. These state-run insurance exchanges are, obviously, going to vary state by state.
Effect on businesses-
A tax on tanning is going to be put into effect to help offset the costs of the health care plan. Tanning businesses will be directly hit by this.
Tax benefits to companies with less than 25 employees that get and keep coverage for their employees.
Large companies have already announced that their expenses will be higher this year. This is due to the fact that the government currently provides a subsidy if they provide their seniors with prescription drug coverage. This subsidy is going to be cut to a smaller amount. Companies say they “expect” that they will slowly cut drug coverage, moving more seniors to the Medicare Drug Coverage.
A fine for not providing coverage or not providing adequate coverage to employees. Employers with 50 employees or more- for each employee that receives a federal subsidy for insurance (aka- basically means if you don’t provide them insurance), you will be fined $2,000 per year. Again, for each employee. Employers who provide “pricier” plans will be- charged a 40% tax on the excess premium over a certain amount- or- pay a different amount, based on state exchange rates, for the employee who chooses to use the state exchange instead of the employer offered coverage.
If you have less than 50 employees, you’re in the clear (for now), according to the FEDERAL BILL.
Effect on insurance companies-
Give me a break. Look at it logically. Government is going to be providing health care for many, many people. Government can force doctors/hospitals/nurses to take less. Insurance companies must charge more. Can’t charge more. Must close doors. Bye, bye. (Written at 3rd grade level for those who are confused about the concept of “capitalism” and “competition”.)
Effect on doctors/nurses/hospitals-
Proposed pay increases for doctors and other health care providers who provide services to those of Medicare are planned to be cut (but no one knows to what levels or by how much).
2018- Reduction in Medicare payments to hospitals, home health agencies, nursing homes, etc.
(Possible future problems- shortage of health care workers. Can doctors afford medical malpractice insurance with reduced fees? Will they have to close their doors?)
Effect on drug companies-
Drug companies, medical device makers, and insurance companies will now be paying fees that projected to help offset the cost of the new health care bill.
Sources:
http://www.nytimes.com/2010/03/22/your-money/health-insurance/22consumer.html
http://www.ctemploymentlawblog.com/2010/03/articles/legislative-issues/what-passage-of-the-health-care-bill-means-for-employers/
Various articles on:
CNN.com, including: http://www.cnn.com/2010/POLITICS/03/25/health.care.main/index.html, http://www.cnn.com/2010/POLITICS/03/26/health.care.subsidies/index.html.
FoxNews articles, including: http://www.foxnews.com/politics/2010/03/27/republicans-hatched-idea-obamas-health-insurance-mandate/
MSNBC.com, including: http://www.msnbc.msn.com/id/36050884/ns/politics-health_care_reform/, http://www.msnbc.msn.com/id/36044366/ns/health-health_care/, http://www.msnbc.msn.com/id/35999823/ns/politics-health_care_reform/,
Logic
