With the passage of this new Health Care Reform Bill, do you think that the pros outnumber the cons?
Obama explained in its signing ceremony at the White House that “this legislation is not going to repair every thing that ails our health care system, but it moves us decisively in the proper course.
Will this $940 billion new Health Care Reform Bill be advantageous for the the vast majority of People in America? Let’s look at a number of the facts as we try to clarify the benefits and drawbacks of this new Health Care Reform Bill:
The PROS
- Requires most U.S. citizens and legal residents to have health insurance, thus offering insurance to more than 35M additional Americans
- Expand Medicaid to all individuals under age 65 (children, pregnant women, parents, and adults without
dependent children) with incomes up to 133% FPL based on modified adjusted gross income (as under
current law and in the House and Senate-passed bills undocumented immigrants are not eligible
for Medicaid). All newly eligible adults will be guaranteed a benchmark benefit package that at least
provides the essential health benefits - Pre-existing conditions are now banned and abolished among health insurance contracts.
- Limited caps among health insurance contracts will be abolished and banned
- Extension of parents’ health insurance to their children who are young adults will rise up to the age of 27. This means more and more young adults will get beneficial health insurance coverage from their parents’ coverage until they reached the age of 27
- Small businesses with fewer than 50 employees will get subsidies in the form of tax credits to help cover the health insurance premiums of their employees
- Requires employers with more than 200 employees to automatically enroll employees into health
insurance plans
The CONS
- As the new Health Care Reform Bill promises to benefit millions of poor American individuals, the rich and wealthy Americans get affected. Under this new Health Care Reform Bill, there’s a 0.9% increase in Medicare payroll taxes for Americans who earn more than $200,000 annually individually and $250,000 for couples. That amount will rise to a 3.8% tax if reconciliation passes. It will also apply to investment income, estates, and trusts.
- Under this new Health Care Reform Bill, Americans must buy a health insurance policy that covers “ambulatory patient services, emergency services, hospitalization, maternity and newborn care, mental health and substance use disorder services, including behavioral health treatment; prescription drugs; rehabilitative and habilitative services and devices; laboratory services; preventive and wellness services; chronic disease management; and pediatric services, including oral and vision care.
They no longer have the luxury to choose which particular coverage the policy covers for a lesser premium. What if you’re a single guy without children? Still, your health insurance policy must have pediatric services coverage. What if you’re a woman who can’t have a baby? Still, your health insurance policy must have maternity services.
Average Americans
- The effect, if any, is unclear as to how the bill will affect rising out-of-pocket medical costs and premiums
- Uninsured families making a combined family income between 133-400% of the federal poverty level (between $29,327-$88,200 to date) will be eligible for premium subsidies through new state-run insurance exchanges
- Starting in 2014, those who do not have the required insurance coverage will pay $95 or 1% of their annual income, whichever is higher. The penalty will rise with the passing of years, reaching a maximum of $695, or 2%, of the annual income
- Families who fall below the income-tax filing threshold will not owe anything extra on their insurance premiums, nor will people who can’t find a policy that does exceeds 8% of their income
- Households making only 133% of the federal poverty level (about $29,327 to date) for a family of four is eligible for the extended Medicaid program available
- Premiums will be capped at a percentage of income, ranging from 3-9.5%
- Starting in 2013, flexible spending accounts, which allow users to escape taxes on many medical expenses now, will be limited. There will be a $2,500 maximum on accounts that typically carry $4,000 or $5,000 limits now, and you will no longer be able to use the accounts for over-the-counter medicines
Affluent families
- Individuals making $200,000,or couples making an income of over $250,000, will pay an additional 3.8% tax on their investment income
- These same people will contribute more to the Medicare program from their now non-taxed payroll tax
Insurance companies
- Eventually, the most expensive insurance policies will be subject to an added tax
- In 2018, employers offering insurance plans with total insurance premiums of $10,200 for singles or $27,500 for families will be subject to a 40% tax on excess premiums. This tax will be on the insurers, but experts say the insured will see this tax in the form of higher premiums or lower benefits