Healthcare Reform Still Being Pushed

The White House recently presented a new draft of the healthcare reform bill, to head off what some see as a coming crisis.

Here are some details of the healthcare reform package being pushed by President Obama:

Health insurance – Individuals will be required to have insurance, or else pay up to $695 or 2.5% of their income, whichever is higher. Companies with more than 50 employees will have a similar requirement, with a fine of $2,000 per worker without coverage. The first 30 workers will not be considered in the payment calculation.

Exchanges will be set up, allowing small businesses, self-employed individuals and the unemployed to combine resources and get less expensive coverage. Illegal immigrants, however, will not be allowed to use these exchanges.

Insurance firms will be required to give coverage for pre-existing conditions, and out-of-pocket expenses will be limited. Higher premiums based on gender and medical history will not be allowed, either.

Medicare – the “doughnut hole” in for prescription drugs under Medicare will be sealed by 2020. Right now, Medicare won’t cover drug costs after a beneficiary has spent more than $2,830 on prescription drugs. However, it starts paying again once an individual spends $4,550 out of his or her own pocket.

Medicaid – The federal government will pick up the full cost for expanded Medicaid coverage through 2017. This will be lowered to 95% for 2018 and 2019, and then 90% for all years following.

Tax credits – There will be $40 billion set aside for tax credits to small businesses, to help them give healthcare coverage to their employees.

New Subsidies – Premiums will be changed, with new subsidies providing for families of four with a maximum annual income of $88,000. Premiums for families who make between $44,000 and $66,000 will also be lowered.

Cadillac health plans – Insurance companies that provide family health plans worth more than $27,000 will be taxed 40%. This tax will go active in 2018 for all plans.

Health Insurance Rate Authority – A seven-member board will provide an annual report for rate increases. The HHS secretary can choose to approve or disapprove the suggestions made in the report.

Abortion – It will be up to the state government to rule if this will be included under health insurance.

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