New Health Care Law Summary

By CBS News Capitol Hill Producers Jill Jackson and John Nolen

March 22,2010

"Coverage:

* Would expand coverage to 32 million Americans who are currently uninsured.

Health Insurance Exchanges:

* The uninsured and self-employed would be able to purchase insurance through state-based exchanges with subsidies available to individuals and families with income between the 133 percent and 400 percent of poverty level.
* Separate exchanges would be created for small businesses to purchase coverage -- effective 2014.
* Funding available to states to establish exchanges within one year of enactment and until January 1, 2015.

Subsidies:

* Individuals and families who make between 100 percent - 400 percent of the Federal Poverty Level (FPL) and want to purchase their own health insurance on an exchange are eligible for subsidies. They cannot be eligible for Medicare, Medicaid and cannot be covered by an employer. Eligible buyers receive premium credits and there is a cap for how much they have to contribute to their premiums on a sliding scale.

Federal Poverty Level for family of four is $22,050

Paying for the Plan:

* Medicare Payroll tax on investment income -- Starting in 2012, the Medicare Payroll Tax will be expanded to include unearned income. That will be a 3.8 percent tax on investment income for families making more than $250,000 per year ($200,000 for individuals).

* Excise Tax -- Beginning in 2018, insurance companies will pay a 40 percent excise tax on so-called "Cadillac" high-end insurance plans worth over $27,500 for families ($10,200 for individuals). Dental and vision plans are exempt and will not be counted in the total cost of a family's plan.
* Tanning Tax -- 10 percent excise tax on indoor tanning services.

Medicare:

* Closes the Medicare prescription drug "donut hole" by 2020. Seniors who hit the donut hole by 2010 will receive a $250 rebate.
* Beginning in 2011, seniors in the gap will receive a 50 percent discount on brand name drugs. The bill also includes $500 billion in Medicare cuts over the next decade.

Medicaid:

* Expands Medicaid to include 133 percent of federal poverty level which is $29,327 for a family of four.
* Requires states to expand Medicaid to include childless adults starting in 2014.
* Federal Government pays 100 percent of costs for covering newly eligible individuals through 2016.
* Illegal immigrants are not eligible for Medicaid.

Insurance Reforms:

* Six months after enactment, insurance companies could no longer denying children coverage based on a preexisting condition.
* Starting in 2014, insurance companies cannot deny coverage to anyone with preexisting conditions.
* Insurance companies must allow children to stay on their parent's insurance plans through age 26.

Abortion:

* The bill segregates private insurance premium funds from taxpayer funds. Individuals would have t * abortion coverage by making two separate payments, private funds would have to be kept in a separate account from federal and taxpayer funds.
* No health care plan would be required to offer abortion coverage. States could pass legislation choosing to opt out of offering abortion coverage through the exchange.

**Separately, anti-abortion Democrats worked out language with the White House on an executive order that would state that no federal funds can be used to pay for abortions except in the case of rape, incest or health of the mother. (Read more here)

Individual Mandate:

* In 2014, everyone must purchase health insurance or face a $695 annual fine. There are some exceptions for low-income people.

Employer Mandate:

* Technically, there is no employer mandate. Employers with more than 50 employees must provide health insurance or pay a fine of $2000 per worker each year if any worker receives federal subsidies to purchase health insurance. Fines applied to entire number of employees minus some allowances.

Immigration:

* Illegal immigrants will not be allowed to buy health insurance in the exchanges -- even if they pay completely with their own money."
More info

Truth is we can improve healthcare and reduce deficit

New England Journal of Health
March 11,2010
Article by Len N Nichols Phd

The Congressional Budget Office says current version of Health Care Reform bill will in fact offer Health Insurance to 30 million not now covered and will reduce healthcare costs over time and reduce our deficit. Conservative myth makers say otherwise. Dr.Nichols full statement here

Health Economists Urge Passage of Reform

Friday, February 26, 2010
New York Times By DAVID LEONHARDTE
Excerpts

An impressive panel of 88 Professional Health Economist sends a letter to Obama urging him to use reconciliation to pass a merged version of already passed Senate and House Health reform bills.
read whole article here

Senate easily approves jobs bill; House passes health-insurance antitrust bill

Washington Post Article
By Ben Pershing and Perry Bacon Jr.

Thursday, February 25, 2010

Comment: It would seem that our congress is having the same problem grasping the whole Health Care Reform bill all at once that we are. By breaking it down into understandable smaller units we seem to see them actually working on getting it done. Who Knew? read actual article here

Major Health Insurers raise rates after record profits

Sunday Feb 21,2010
Excerpts from an Editorial in The Tennessean
Tennessean staff writer Getahn Ward contributed to this report.

After a year (2009) of record profits Major Health Insurers are raising premiums to record levels
read whole article

Economy Down, Health Insurance Industry posts largest Profits ever

February 12, 2010 6:39 p.m. EST
Topics: business, economy, business and finance, health, United States
Linda Young - AHN(All Headline News - Digital news media) Editor

Washington, D.C., United States (AHN) - While businesses and individuals struggled to cope with ever-rising health insurance costs, health insurance companies lined their pockets with profits of $12.2 billion in 2009 - an increase of 56 percent from 2008.

Those staggering statistics were revealed in a report by a coalition of liberal advocacy groups and labor unions, Health Care for America Now.

"The five largest U.S. health insurance companies sailed through the worst economic downturn since the Great Depression to set new industry profit records in 2009, a feat accomplished by leaving behind 2.7 million Americans who had been in private health plans. For customers who kept their benefits, the insurers raised rates and cost-sharing, and cut the share of premiums spent on medical care. Executives and shareholders of the five biggest for-profit health insurers, UnitedHealthGroup Inc., WellPoint Inc., Aetna Inc., Humana Inc., and Cigna Corp., enjoyed combined profit of $12.2 billion in 2009, up 56 percent from the previous year. It was the best year ever for Big Insurance," Health Care for America Now wrote in a statement on its Website.

Part of the shocking profits were made by dropping the sickest policy holders, Health Care for America Now noted.

In addition, although many people view health care as a necessity, health insurance companies price it like it's a luxury.

Health Care for America on its Website quoted Andrew Kurz, former chief financial officer of Wisconsin Blue Cross-Blue Shield as saying, "Insurance company profit margins put the industry in the top 10% of all industries, up there with cigarette manufacturers. Insurers price their products like a discretionary luxury, not something essential for health and well-being

Read more:

Anthem BlueCross Increases Calif rates 39%

Anthem Blue Cross a division of WellPoint Insurance Company has announced a March 1 rate hike of 39% for individual heath insurance plans in California. see SF Chronicle Article here