Health Care Reform basics Part 2 | New health care bill summary

Monday, March 22nd, 2010 By

Syringes

The new health care bill gives a shot in the arm to underinsured and uninsured Americans. Image from Flickr.

The new health care reform bill passed the House last night on a 219-212 vote. While the bill is not yet law, the changes of this health care reform are sweeping and will take about 10 years to fully implement. The bill will be paid for with everything from payroll loans to the government borrowing money from the national debt – but the Congressional Budget Office estimates that in the end, the bill will save the U.S. Budget a significant amount of money each year. To read more about the effects of the health care bill in 2010 and 2011, see New health care bill summary Part 1.

Summary of the new health care bill 2012-13

No major changes will occur in health care in the year 2012 under the new health care bill. In 2013, many of the new taxes and fees that will pay for the new health care bill will go into effect. This will provide funding for the 2014 fiscal year updates to the health care system.

These taxes will include new Medicare taxes on individuals who earn more than $200,000 a year. The wage tax, dividends and interest tax, and a small tax on medical devices will also be implemented. In 2013, the new health care bill will also implement a test system in Medicare in which payments are made based on the quality, rather than quantity of health care services. Health insurers will also be barred from charging different premiums to customers based on gender.

Summary of the new health care bill in 2014

In 2014, the majority of Americans will gain benefits from the new health care bill. Exchanges will be created so individuals without employer-provided health care or small business can shop for health care coverage – and insurance companies will be barred from denying coverage on the basis of pre-existing conditions. Medicare will also expand to cover all Americans with income up to 133 percent of the federal poverty level ( about $27,000 per year for a family of 4). Small businesses will also receive a tax credit to help them provide coverage to their employees. The insurance industry will also be required to pay an annual fee to help pay for the exchanges that will cover all citizens that cannot otherwise receive insurance.

In addition to providing subsidies and guaranteed coverage for most citizens, the new health care bill will also require that most people have health insurance. There will be a fine for not carrying insurance of some sort. An independent Medicare board will also be created to help curb Medicare costs if the costs rise more quickly than inflation.

Summary of the new health care bill in 2015, 2016, 2017, 2018

In 2015, the new health care bill will simply continue the new coverage, taxes and fees that are created in previous years. In 2016, the penalty for individuals who do not purchase health insurance will rise to a $695 minimum. In 2017, businesses that have more than 100 employees will be allowed to participate in the state insurance exchanges, if the state government allows it. In 2018, an excise tax will be imposed on so-called “Cadillac plans” that generally provide more than $27,500 worth of coverage for a family.

Sources:

Wall Street Journal
Lexington Clipper-Herald
My Fox Tampa Bay
Onion Kid
The Seattle Times
Wikipedia – Poverty article
Washington Post

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This post has 7 comments

  1. K. Smith, Ohio says:

    I just learned from my insurance company today of a major hurdle using my 2011 FRA (Flexible Reimbursement aka FSA, Flexiable Spending Account). Almost 90% of over-the-counter medicines will require a PRESCRIPTION from your doctor if you want to be reimbursed through your FRA. Cough drops, diaper rash cream, allergy medicine – the list goes on. Previously, I would simply use a designated "credit card" at the point of sale and if the item was eligable under the FRA plan it would be automatically deduced. Now, I would need to call my physician, get a prescription, pay up front and then send it in for reimbursement. WHAT A MESS! As if our medical structure doesn't have enough paperwork to contend with. The pre-tax savings for me is NOT worth this hassle! I'm literally sick to my stomach the more government gets involved.

  2. Mia says:

    Will there be a cap on how much insurance companies can raise rates? I just heard Humana will be tripiling my rates for next year. Being on a fixed income I'm already panicking. How am I going to afford this with everything else going up? You can only cut back so far on medicine, food and heating bills. I live by myself and have cancer which is in remission right now I hope. I'm afraid to go to the doctor because of the high cost of the treatments and tests. How sad when dying just is more affordable all around.

  3. glenn says:

    heres a source from your beloved MSNBC which i would even claim a reputable but im sure you would
    http://fieldnotes.msnbc.msn.com/archive/2010/01/11/2170075.aspx

    and another from USA today

    http://www.usatoday.com/news/washington/2010-01-28-health-care-insurance-fraud_N.htm

    last but not least because i trust fox more than any of these others, just to be fair with you this is politifact check on fox news nd even if you want to argue the numbers its darn close to 20 percent, not only that if you would like i can show you how GOVERNMENT not business has the worst statistics for fraud waste and abuse in almost every category, we are being manipulated and lied to

    http://www.politifact.com/truth-o-meter/statements/2009/aug/27/tom-coburn/coburn-says-20-percent-every-medicare-dollar-goes-/

    • Mary Rice says:

      It is true, there is a lot of fraud and misuse of the Medicare system. However, all of this fraud is perpetrated by individuals who get payouts from the Medicare system, not the government agency that administers it. The new health care bill includes provisions to help ferret out and reduce this misuse and fraud.

  4. HSA says:

    I am concerned about the costs and how they’ll get reigned in. I do like the fact that people will have accessed to quality health insurance.

  5. Frank says:

    Who makes 200,000 and NEEDS medicare?

    One way to reduce the cost is to weed out the medicare/caid frauds which account for at least 20% of the recipients.

    Next, anyone who does NOT want to participate doesn't have to.

    More strict regulations on who applies will also save $$$$$$.

    • mike says:

      LOL, did you read the article? The tax is to help fund Medicare, not those using it.

      The amount of fraud is not nearly 20%, come on now. Show me a reference that says that and is not Fox News.

      Requiring most people to get insurance is how they are going to help pay for this. It doesn't work if most people don't have insurance. The healthy people subsidize the sick.

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