Health Care Reform Bills Details

Before few days, House Democratic leaders revealed a sweeping $1 trillion health care reform bill that would impose surtax on the wealth and create a robust government-run insurance program that would cover more than 30 million uninsured Americans.

There is an incredible achievement this year as the three separate committees named as Ways and Means, Education and Labor and Energy and Commerce have come together on one bill. In 1994 health-care reform fight, all of them had a substantial section on the committee crack-up and there was no unity.

The details about the Health Care Reform Bills are as follows:

The Health Insurance Exchange

It is run nationally, though states can choose out of the national structure. In the 1st year, it accepts those without health insurance, those who are buying health insurance on their own, and small businesses with fewer than 10 people. In the 2nd year, it accepts small businesses with fewer than 20 people. After that, "larger employers as permitted by the Commissioner." In other words, expansion is optional, not mandate.

The Benefit Packages

Within the Health Insurance Exchange, the basic plan that everyone needs to offer is, "basic plan." It has to be equal in value to the prevailing employer-based insurance in the area. Cost-sharing cannot exceed $5,000 for individuals or $10,000 for families in the first year (it can then grow by the rate of inflation each year after that).

Revenue

About half is paid for through $500 billion or so in savings from Medicare and Medicaid. The rest comes from surtax on the richest 1.5 percent. The surtax is 1 % on income between $350,000 and $500,000; 1.5 % on income between $500,000 and $1,000,000; and 5.4 % in income above $1,000,000. The surtax can vary if the bill is less or more expensive than initially anticipated.

The Public Plan

The public plan consists three, or maybe four, insurance plans. It pays Medicare rates to hospitals for the first three years and then begins negotiating on its own. It is open to anyone with access to the Health Insurance Exchange.

CBO Score

The Congressional Budget Office has released its estimates for the coverage side of this bill. They project that within 10 years; it will cost $1 trillion and cover 97 % of the legal population.

Affordability and Subsidies

The House bill has subsidies up to 400 % of poverty, which is equal to $43,320 for an individual and $88,200 for a family of four. At the bottom end 133% if income as below that then you are eligible for Medicaid and the subsidies limit your health premiums to 1.5 percent of income. At the top end 400% it's no more than 11 percent of income. If you are not eligible for subsidies, you are still going to be protected from catastrophic health-care costs.

You can read  fact sheets and summary documents of Health Care Reform Bills.

Health Care Reform Bills Details