While the new health care bill has sparked controversy between liberals and conservatives, a finally amended version was passed by the House in March of 2010. While a bitter fight continues in the Senate, it’s safe to assume that the major provisions of the bill will remain intact. Here, we’ll provide a general guide to the details of the health care bill.
Total Cost of the Health Care Bill
The Congressional Budget Office released an estimate that the total bill will cost roughly $940 billion over 10 years. As a result, major coverage expansion will begin in 2014. Over 32 million uninsured Americans will be able to secure coverage as a result of the health care bill.
The new bill requires almost every citizen to purchase health insurance. People who are required to purchase insurance but deign not to will be hit with a fine. Some low-income families will receive exemptions to these requirements. This mandate will go into effect in 2014 as well.
New Requirements for Insurance Companies
A major attribute of the law will require insurers to provide affordable insurance to people who have existing medical conditions. This means that insurance companies can’t deny coverage based on previous health history or current issues. Also, women can no longer be charged for higher premiums than men.
The bill also prohibits insurance companies from issuing financial and dollar limits on health insurance policies. They are also required to cover children who may be suffering from existing medical conditions. The age limit for parents to keep their children on their policy has been extended to age 26.
Special Provisions for High-Risk People
The bill creates an interim high-risk pool that offers specialized insurance to people who are uninsured and suffering from medical conditions. This high-risk pool covers people until 2014, at which point the expansion of coverage would sufficiently cover these people.
The bill expands Medicaid coverage for people who live within the poverty level as defined by the federal government. The new Medicaid policies are designed to cover people for 133 percent of the current poverty level coverage.
More taxes will be levied to pay for this expansion in coverage. Investment income and wage income will be taxed at a rate of 3.8 percent. Only individuals who make more than $200,000 a year or married couples who pull in over $250,000 will be subject to this tax increase.
Filling the “Gap” for Seniors
Seniors will be able to acquire a $250 rebate on prescription drugs once they have spent $2,830 on pharmaceuticals, thereby reaching the coverage gap. Seniors who are in the coverage gap will also receive discounts to brand-name drugs starting in 2011. In 2020, the gap is expected to disappear, meaning seniors will only have to pay 25% of the cost of their prescription drugs.
These are the most prominent changes that are found in the health care bill. Still, there are a few additional attributes that need to be addressed. As a result, I’ve added a second part to this article. Read part 2 for more information about the new health care bill.
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