Photo Credit: Associated Press
As North Texans were getting ready to go to bed last night, legislators in Washington were busy making history by passing sweeping health care reform that just two months ago many considered was dead on the table. So, we thought it would be a good idea to give you some basic “talking points” of what has happened and what will potentially take place in the near future regarding health care reform.
Disclaimer: This is not intended to be an all-encompassing, in-depth analysis of the legislation (that will come once the bill is signed by the President), but this blog entry is merely to provide you with general information and facts as to what occurred so that you can have a knowledgeable discussion with colleagues, family, and friends. Therefore, the information is broken out by bullet points and will remain somewhat above the weeds.
PROCEDURE
- Major health reform legislation (H.R. 3590) came to a vote in the House late in the evening of Sunday, March 21st and was approved 219-212. No Republicans cast a ‘yea’ vote in favor of the bill and they were accompanied by 34 Democrats.
- This was the same bill that was passed by the Senate on Christmas Eve last year.
- The House of Representatives shortly after passing the Senate bill passed a reconciliation package (220-211) intended to “fix” items within the previous bill. That will now be sent to the Senate where Majority Leader Reid is confident he has the votes to pass it without amendment.
- In case you heard the phrases “Slaughter Solution” or “Deem and Pass” over the past couple of weeks – remove them from your thoughts. Democrats opted not to go that route with final passage of health reform.
- Please note that the reconciliation bill (H.R. 4872) also has several significant reforms, not directly related to health care, which involve the federal government and student loans.
- If you are a chamber member and would like to further discuss how the reconciliation process works, please send us a note at healthcare@dallaschamber.org
- President Obama will most likely sign the approved bill in the very near future, making it law. Then, the reconciliation package should be in close-tow for him to sign and therefore “fix” the first bill.
- Should is italicized for a reason: Even though the Senate only needs 50 votes (plus the Vice President) to pass the package, it must be done without a single change. Otherwise it will go back to the House for another vote.
- This has potential to become messy and will be something you continue to hear about at the top of the news.
CONTENT
*implemented over the next several years
- Children can remain on their parent’s insurance until they are 26 years old, regardless of their qualification as a tax dependent.
- Insurance companies will not be able to drop or limit coverage if an individual becomes sick.
- Starting immediately, health plans will not be able to deny coverage based upon pre-existing conditions to children under age 19 or to any individual starting in 2014.
- An excise tax of 2.3% will be placed on the sale of medical devices.
- Wellness incentives will increase to 30% of plan costs for participation in a wellness program (has potential to expand to 50% based upon judgment of regulators).
- Individuals will be required to enroll in coverage or pay a penalty based on a percentage of their income or a flat dollar amount (whichever is greater).
- Individuals earning above $200,000 or families above $250,000 will be subject to a 2.35% tax on wages in excess of those amounts. They will also subject to a 3.8% tax on unearned income such as dividends and interest.
- Medicaid eligibility will be expanded to those with incomes up to 133% of the federal poverty level.
- Create exchanges where small businesses and individuals without employer coverage can shop for health plans.
- Drug manufacturers face new fees starting at $2.5 billion in 2011 and rising in subsequent years.
- Employers with more than 50 employees will have a “pay or play” responsibility requiring them to pay a fine if they do not provide affordable coverage.
- An excise tax of 40% will be placed on “cadillac” health plans
FIGURES
- The Congressional Budget Office estimates the bill will cost $940 billion over the next ten years
- It is predicted to reduce the deficit by $138 billion in the first ten years and then reduce it by another $1.2 trillion in the subsequent decade.
- Approximately 32 million previously uninsured Americans will be gain coverage due to the policies enacted within this legislation.
- There are a total 2,562 pages when you add the Senate passed bill (2,409) and the reconciliation bill (153) together.
ON THE HORIZON
- As was said earlier, watch for news on the reconciliation bill and its journey through the U.S. Capitol Building.
- An executive order issued by President Obama clearly mandating that no federal dollars be spent to fund abortions should be released.
- This was a crucial promise made to several pro-life Democrats threatening to vote “nay” if this issue was not addressed.
- Legislation for a “doc fix” could be seen as early as this spring and will potentially cost several hundred billion dollars
- Lawsuits by various states, including Texas, that focus on the constitutionality of the recently passed bill and the infringement of state sovereignty.
“This is what change looks like,” President Obama declared late last night. The Dallas Chamber plans to continue following that change and inform the North Texas community as to how it will affect the region and our businesses. We will also maintain engagement of our elected officials and policy makers to advocate what we believe will is best for the region and will continue to aide in development and growth of the local economy.
