The new health care bill injects money and regulation into the health insurance industry. Image from Flickr.
Yesterday evening in congress, the health care reform bill, HR 4872, passed the house of representatives on a 219-212 vote. An incredibly sweeping change, the new health care bill has many pros and cons. With more than 2,000 pages in HR 4872, the basics of the new health care reform bill are extensive. In short, the U.S. government will be attempting to provide health care insurance for most Americans without those individuals needing to take out a payday loan to pay for that coverage. The effects of the new health care bill will be split over 10 years. The first two years will be covered below – to see the effects the new health care bill will have from 2012 – 2018, see Part 2.
New health care bill not yet law
The new health care bill passed the House on Sunday, but it is not yet law. First, the new health care bill must go back to the Senate for reconciliation. This means that some major provisions of the new health care bill may change – though the pros and cons of the majority of new health care bill are likely to remain the same. Once the bill is reconciled through the Senate, it will go to President Obama’s desk to be signed. At that point, the new health care bill would become law.
The timeline of the new health care bill
Because there are many details involved with the new health care bill, the timeline of implementation for the bill is currently set at 10 years. This is assuming that the new health care bill provisions are not repealed or changed in subsequent legislation. The cost of the health care bill is estimated to cost about $100 billion a year, but that cost is estimated to be more of a cash loan – the cost savings from altering the health care system are estimated by the Congressional Budget Office to be more than twice the yearly cost.
Summary of new health care bill in 2010
In the year 2010, there would be three major changes to health care. First, insurance companies would no longer be allowed to deny coverage to children with pre-existing illnesses. Second, children would be able to stay on their parent’s insurance policies until they turn 26 years old. Third, Medicare recipients who fall into a specific coverage gap will get a $250 rebate.
Other changes include an excise tax on indoor tanning, which will increase the cost of that service. Also, individuals that have not had health insurance for 6 months will receive a subsidy to enroll in high-risk insurance pools run by the states. All new insurance plans sold must exempt preventative care and screenings from deductibles. Finally, small businesses with fewer than 25 employees would receive up to a 35 percent tax credit for providing health insurance to their employees.
Summary of the new health care bill in 2011
In 2011, the new health care bill will make changes focused mostly on preparing for later updates. The new health care bill will set up a long-term care insurance program. Individuals who pay premiums into this system for at least five years will become eligible to receive support with daily living assistance.
The senior citizens that fall into the “medicare doughnut hole” – a coverage gap – will get a 50 percent discount on some drugs. In 2011, a new fee on drug makers will also be implemented to help pay for the upcoming changes. The fine on withdrawing funds from a Health Savings Account for non-medical expenses will increase by 5 to 10 percent. Employers will also need to start including the cost of health care on employee’s W-2 forms.
To read more about the continuing effects of the new health care bill, see Health Care Reform basics Part 2.
Sources:
Wall Street Journal
Lexington Clipper-Herald
My Fox Tampa Bay
Onion Kid
The Seattle Times
Wikipedia – Poverty article
Washington Post
Im sorry but I am sick and tired of making minimum wage and not even being able to afford my own health insurance while the government is taking taxes out to pay for someone elses. If america was smart, they would take that portion out of my check and use it to pay for my bills. if i work until no longer able to im pretty sure there would be enough money there to take care of me for the rest of my life. Maybe if people didnt poison themselves with cigarettes, alcohol, and fast food there wouldnt be such a need for medical treatment in America.
AMEN Collins!!
I’ve bookmarked your website, just because I stumbled acrossit and it really seems to be interesingand I enjoyed studing your posts.
i think the ins. company's including health and life and car ins. should have to give back more than prem. due to the fact they recive say $300 a month for 12 months wich comes to $3600 a year what happens when you don't use them the whole year your out $3600 and the you"ve been paying it for 5 years not using it that's $18,000 of free money they got so then the 6th year you need to use it and they deni your claim and cancel you now what all they have to give you is 1 month of premiums lol yep you got screwed out of $18,000 don't get me wrong we need some health care reform but what isthat going to make them do about the free money they got lol
The insurance companies are gonna make a lot of money because they have to raise there cost.. However within ten years they are all gonna fail because the government is gonna have there own insurance company which is considerably cheaper than the others because the government can afford it. So then everyone will have the same shitty insurance coverage and the doctors will get paid less and people will be pissed….
I think that everyone should realize that the insurance comp will have to raise the premiums at least 200 to 300% of your cost now. Oh—- did you all think that the insurance comp were going to give you a major med policy for $125 per month. Good luck with that!!!!!
All you negative people need to start helping, instead of hiding and complaining. Lets talk to the republicans, and have them vote for what is right, instead of saying no on everything the President says. It makes you and them look like spoiled children who have lost the game!!!
Margarita
haha youll regret being so liberal
I am a Canadian. Not sure why the Americans are so afraid of this. This is how it works here.
Everybody can go to the doctor, if they can get one. If they can't, you have walk in clinics and you see a doctor there. Sure, its preferable to have your own doctor, especially if you have serious issues.
Whether you work or not, you still have access to medical care. They don't kick you out in the street and hospitals don't choose who comes in. If you are homeless and sick, you still come to the hospital.
Secondly, many companies also supply healthcare insurance on top of your free OHIP. (Ontario). Many of these insurances will cover Dental, Vision etc. This is the big expense that people have trouble with including myself. If you do not have additional insurance through your employer and you need to have teeth pulled out, you need to come up with for example: 1,800 for wisdom teeth. Kids are covered for eye tests until 18 I believe. They can go once a year for free checkups. Adults do not get anything free for the eyes…not sure about seniors. I think they may have something. I watched Michael Moore's Sicko documentary and I know he wants to make it dramatic, but I am shocked that this happens next door to us. Unbelievable.
I hate to tell the American Dreamer (Terri) that if she wants to start her own business go ahead. However, you better have a lot of money to do it, because with the New Health Care Reform Bill, a large portion of your "American Dream" money will now be going to medical coverage for your employees. Small companies are getting "hammered" with rising health care costs, that right RISING COSTS. So go ahead and start your business now, because in 2014 you won't be able to afford to start your business. Health Care Reform will eat it up!
nice post,thanks for admin!
Thank WHO the health care reform bill passed? Instead of the burden for the mandate being placed on businesses is ends up on me the lone underpaid citizen. I am no longer paying illegal direct income taxes as it is not required by American citizens under Treasury Decision 2313, but rather levied on non-resident aliens and illegals.
I'm no longer filling out the 1040 or accepting work under W-2. Thanks bunches, jackass. When the IRS attempts to come to my door to collect back illegal income taxes they will be faced with firearms that I have the right to keep and bear under the 4th Amendment. In less then four years time there will be armed rebellion in this country and the citizens will take back our freedoms!
4th Amendment?!?!?! What are you talking about? It's the 2nd Amendment you're referring to. And sure, you may consider meeting your IRS visitors with a firearm, but eventually, you'll lose due to your poor decision. You can't threaten a duly authorized agent of any government agency like that. Sure, you can claim it's your right, but you will not succeed. Get a grip on reality, citizen.
Instead of your cry for 'Nullify Obama,' why don't you do it the TRUE American way…….go vote! Voting is our best power to change things.
Health Reform Ends Discrimination
This new health reform bill is quite possibly a God send to people that have pre-existing conditions and cannot get affordable insurance anywhere. For far too long now, individuals with cancer, heart problems, or any other pre-existing disease have been left to fend for themselves, hoping and praying that they can receive the medical attention they so desperately need. They are made to be victims because of something that is out of their control. But, with this bill, that will no longer be the case. Insurance companies will no longer be able to deny someone that deserves care what they need just because they know they will have to fork over mone
Health Reform Ends Discrimination
This new health reform bill is quite possibly a God send to people that have pre-existing conditions and cannot get affordable insurance anywhere. For far too long now, individuals with cancer, heart problems, or any other pre-existing disease have been left to fend for themselves, hoping and praying that they can receive the medical attention they so desperately need. They are made to be victims because of something that is out of their control. But, with this bill, that will no longer be the case. Insurance companies will no longer be able to deny someone that deserves care what they need just because they know they will have to fork over money.
Health Reform Betters Children’s Health Care
On February 4th 2009 the Children’s Health Insurance Reauthorization Act was signed by President Obama. It is also known as the State Children’s Health Insurance Program (SCHIP). It continued medical coverage for over five million children and added at least four million more to the medical coverage. Because of this program there are at least eleven million children insured that would otherwise not be able to afford medical coverage.
I have read the bill and although I commend the president and democrats in congress for passing the bill, I do have concerns about how conservative the bill is overall. I wish there was a public option so people have real choice and competition in the insurance markets.
Thank God the health care bill passed! I want to start my own business but can’t because I was born with a heart murmur which is considered a pre-existing condition. While it has NEVER affected my health, I am not able to get insurance except through my employer – something that has kept me chained to my desk. The new bill will disallow pre-existing conditions so I will be able to get insurance on my own. My only regret is that it won’t go into effect for adults until January 1st, 2014. I guess my attempt to live the American Dream will have to wait until then.
yeah terri they cant hold pre existing conditions against you anymore but they sure as hell can raise the premiums. good luck affording insurance with all the taxes youre gonna be paying with a new business.
I feel that this 2000 page reform was not necessary, and will become largely a waste of taxpayers' money. What they should have done is make it legal for insurance companies to provide thier services accross state lines.
Why?
1) when companies compete, the consumer wins. Competition = lower prices.
2) It is unconstitutional to prevent insurace companies to provide their services across state lines.
To those who say "If I want to choose not to get health insurance why cant I"- Consider 2 points. A. 60% of bankruptcies occur due to unforeseen medical bills. It only takes one emergency situation that requires surgery to put you in a position where you could lose your home, your job, your car-everything you worked for! B. The cost of providing emgergency room care to treat manageable conditions for responsible but uninsured Americans is staggering. Tax payers foot the bill as costs are passed on to the consumer. Look at your hospital bill and tell my why 1 tylenol costs $12.00! I agree that forcing someone to have insurance feels a bit like "your grandma forcing you to swallow cod liver oil", but I'd rather see people forced into being insured than not. Maybe they will go to the doctor to manage their diabetes instead of ending up in the emergency room in diabetic crisis! We can pay now or later-but we're gonna pay! The question is which method stands to provide the most benefit?
Well put…You convinced me.
I suppose next they will be telling us how fast to drive………..to late!
I suppose next they will be telling us what to watch on tv………to late!
I suppose next they will be telling us not to pray in school…….to late!
I suppose next they will be telling us how to raise our children…to late!
I suppose next they will be telling us when an where to hunt…….to late!
I suppose next they will be telling us what to teach our kids……to late!
I suppose next they will be telling us how much to pay in taxes….to late!
I suppose next they will be telling us we can't be on public lands.to late!
The good news….
We can have free food……yeah
we can have free health care……..yeah
we can live in subsidized housing…yeah
So tell me why should I even get a job?
answer: to give my money to the government so that the may give it back to me in a way I obviously could not have figured out for myself!! Good thing we have Government to help me spend my money….
I have a better idea, just quit working! The government will keep taking care of us…YEAH!!!
If we all live off of governmental care and no on works, the real question the government officials should ask is who is going to pay their salaries? They may find that to be a pertanant question!!!!!
Don't get out of the country much do you? Many other counties have a single payer health care system. Why should the great United States not care enough about its citizens to do the same? Besides this doesn't 'give' health care to anyone, it just makes it cheaper for some to get it.
Have you looked into the QUALITY of health care in the countries that have socialized health care? You think the US is bad now. Do a little research into how much less likely you are to survive if you are diagnosed of cancer in one of those countries compared to the US. My family is from a European country with socialized health care and in order to be properly taken care of you have to give cash bribes to the doctors! Is that better? Is that the morally correct way to handle out problems? We should look at the source of the problem, why cannot 20% of Americans afford their own health insurance. Why don't we do more to lessen the poverty level in the US by encouraging and subsidizing job training programs? That is the only way to have a long term solution to our problems…Help people pay for their own stuff. And just an end note…I am a young single mom, I should statistically be living in poverty for the rest of my life but I have made the choice to not let that happen. I made the choice to work my way through college while taken care of my daughter so our lives can be better. Tell me why other people can't do the same!
Mel, you are right that the fact many Americans cannot pay for their own health care is an issue. There are thousands of ways to go about fixing it, and making health care affordable is one helping hand.
As far as quality of health care, the infant mortality rate in many countries with socialized health care is MUCH lower than the United States, which is #33 on the list: http://en.wikipedia.org/wiki/List_of_countries_by…
As far as overall life expectancy, the US is #38, far below many other countries with socialized health care: http://en.wikipedia.org/wiki/List_of_countries_by…
Deaths from cancer, by country, the US is #9: http://www.nationmaster.com/graph/hea_dea_fro_can…
Is the new healthcare bill perfect? No. Is all socialized medicine a good idea? No. Do many countries with some form of government-supported health care have much lower infant mortality, longer lifespans, and lower cancer death rates than the U.S.? Yes.
You're an idiot for printing this comment.
Me obviously knows nothing about the Health care bill and believes eveything he hears from the Three Stooges, Limbaugh, Hannity, and O'Rielly. This bill in no way sets up a government run healthcare system. It has more than 200 revisions made by the Republicans including the provision that mandates insurance coverage. That mandate by the way was the corner stone of Mitt Romney's Healthcare plan which was vigorously supported by the Repubs.
well put.
i work in the health care industry and i can tell you this, this bill is going to cause the population in the emergency dept to rise more than can be imagined. when a country goes socialized then like you said, there is no reason to work to better yourself. 30 percent of my patients in the ER do not pay their bill and medicare only pay 30 cents on the dollar. im sick and tired of lazy people being the cause of me having to work my *** off for half the money in the end. america used to be a place where you came to better yourself. now its a place where you come to be lazy and live off the few who wanted to actually do something and go to college.
While it is true that more people may use emergency care in the beginning, part of the provision in the bill to help reduce this is the requirement that preventative care be 100% covered by insurance. This way, there is a way for all people to “take care of themselves” and most likely reduce load on emergency rooms. Under the current system, emergency rooms become the de facto care for individuals without insurance, which is why so many cannot pay their bills – they only get care in emergency rooms when they have no other options and cannot pay for preventative or general care.
Wow I think maybe John is in the wrong field here. I thought health care workers went into health care because they WANTED to help people. I have several medical problems. I can't get insurance coverage at this time. I can't get disability yet and can't work at this time. I am 55 years old. I am not young enough to get State medical help and not old enough to get medicare help. No job means no money for me to afford my medications I need to survive let alone medical insurance. There are a lot of people out there like me. Don't kid yourself that there aren't. I am not a free loaded. I worked for years and paid my bills, insurance and etc. Sometimes things just happen to people that is beyond their control. When I have a bad attack I have to go to the emergency room or die. So if I make you have to work harder in order to live….well John tough.
Nice. Create new laws burdening those that pay taxes in this country to provide services to those that don't. Then one of those that work cries "foul" and the free-loader says "tough." Yes, tough indeed. After all, the bill is now law and we are forced to abide by it or pay fines/go to jail. Literally pay fines if our business model does not provide for our employees' healthcare costs.
Is this really fair? Consider our tax system. A typical employee pays taxes as follows: (assuming $50K income in 2010)
Social Security 6.2%
Medicare 1.45%
Fed Income Tax 15.57% (marginal rate at $50K AGI, less exemption and stnd ded)
State Income Tax 5.00% (depending on state of course)
Sales Tax 8.00% (estimated)
——
Total 36.22%
This not taking into account Property Tax, estate tax, business tax, excise tax, penalty taxes, use tax, and many other taxes. Not to mention the overly burdensome record keeping costs and professional fees associated with complying.
$50,000 in wages is not considered rich in 2010. Even so, this quick example showcases how ridiculous our tax system has become. WE ARE IN FACT A SOCIALIST COUNTRY in economic terms. Impute a higher wage earner above and see how quickly we pass all other governments in the world in terms of tax revenue on each dollar earned. The wealthier non-tax evading citizens give up in excess of 50% or their total income earned during each calendar year (others into the 60's). Keep in mind our initial income tax rate was 1%.
Disclaimer, the above example is obviously simplified. Results are bound to vary depending on assumptions and facts (for example itemizing instead of standard deduction).
go work at walmart…they will hire anyone!
Also, If you are well enough to be on a computer, then you can get a job! Stop lying to yourself that you can't work…your just being lazy!
good luck getting treated in the emergency room when there is a three month waiting list. move to canada.
I hear ya…this robbin hood mentality has got to go. Media refers to it as government
Is goning to provide. It only steals from the hardest workingand provides nothing..oh well
I guess the liberal madness will only end when the gov breaks down.
Tim-
Some of the changes (such as removing lifetime coverage limits and children being able to stay on their parent's policies) do apply to existing policies, while other changes (such as the high-risk insurance pools) do not necessarily apply to existing policies. If there is a specific part of the bill you are wondering about, the best idea is to read the bill yourself. Also remember that the bill is not yet law, so it could change before it goes into effect.
Full text of the bill is available here
Also check out the list of sources in the article – the Wall Street Journal in particular did a very good job of breaking down the bill.
Mary.
Does the Health Care Bill apply to insurance policies that were issued BEFORE the bill is signed into law?
Where on the Health Care bill did you read this?
Tim
I am researching the Health Insurance Reform Act. I found a great article that breaks down the bill and how it will affect you based on if you are currently insured, and if not. It also breaks down the bill under these headings based on when the changes are take place. I'm sure it will be of great help to you and answer your questions.
Sorry
The web site is:
http://www.nytimes.com/interactive/2010/03/21/us/…