A Guide to The New Health Care Bill (H.R. 3590) Part Two

This is Part 2 of “A Guide to the New Healthcare Bill.” Here, we continue to provide some of the most crucial mandates found within the new health care bill.

Increased Subsidies and Tax Credits
One of the most drastic adjustments to the bill concerns government subsidies. The new bill provides a large amount of tax credits for acquiring an insurance plan. Actually, the revised bill contains much more tax credits than the original Senate bill contained.

Now, the bill is designed in a sliding scale structure. Tax credits and subsidies are available to households who gain up to four times the federal poverty level. This means that the cap on subsidies ends at $88,200 for a family of four. If you make less than this, then you’ll qualify for tax credits. A family of four that brings in about $40,000 would receive premium caps that would hover around 6 percent of total income.

The Introduction of Exchanges
The bill introduces new state-sponsored purchasing groups which are called exchanges. Uninsured people, freelancers, and even small businesses can decide to purchase coverage through these exchanges. The exchanges basically empower these people to acquire coverage equivalent to that which employees of large companies can acquire. If you currently work for a large firm, you won’t see much of a change. But, if you get fired or laid-off, you might be able to qualify for this subsidized coverage.

Technically, the new bill doesn’t account for a totally government run plan. However, the new exchanges do operate under a federal office that manages governmental employees’ health plans. So you basically are signing up for a national plan if you do go for subsidized coverage. These plans are technically private and nonprofit.

The Exclusion of Abortion
The new health care bill does not allow taxpayer money to be allocated towards abortion or other elective procedures. The bill does not mandate that any plan is required to cover abortion. If a plan does cover abortion, then the insured parties must pay for the abortion coverage separately from the subsidized coverage. The bill also defers some of the decision to the state level, wherein state congressional lawmakers have the option to ban abortion coverage or ease laws pertaining to abortion coverage.

Republican Input for the Bill
President Obama has agreed to implement some Republican provisions into the new health care bill. Originally, Republicans wanted to add a structure by which investigators would pose as patients to attempt to uncover insurance fraud. Also, Republicans wanted the bill to address medical malpractice reform and some tort reform. These additions were not included in the final bill. However, Senator Charles Grassley of Iowa suggested increasing Medicaid payments to primary care physicians, and this appears to have been left in the final bill.

As you can see, the new health care bill has a lot of bells and whistles. We’ll see most of the mandates implemented around 2014 and later. You should take a look at your tax bracket to see how you can qualify for medical tax credits. If you’re self-employed, employed at a small business, or uninsured, then be sure to read up on exchanges. You can still choose from a menu of policies, even though they’re all generally subsidized.

You can also read more about insurance rates for health care on our main site.

Related posts:

  1. A Guide to the New Health Care Bill (H.R. 3590): Part One
    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...
  2. The Lowdown on Health Insurance
    Jargon and acronyms are one of the most annoyingly confusing aspects of a new job. Some of the terms you will need to remember will be specific to the company...
  3. Six ways to save money as a employee in 2010
    Since the beginning of the new year, employee benefits have maintained or increased and should continue to do so as the year rolls out. Taking advantage of these benefits can...
  4. Sallie Mae lowers interest rates as private lenders battle losing billions
    Faced with the prospect of losing billions of dollars in subsidies from the federal student loan program, private lenders are looking to making their non-federal student loans more attractive which...
  5. How Motorcycle Insurance Rates are Determined
    A variety of factors will strongly influence motorcycle insurance rates. Many riders worry about excessive insurance costs. There are ways to lower motorcycle insurance rates. Here, we’ll look at the...