Briefing: Health Care Reform
On Sunday, March 21, the House of Representatives passed a national health care reform bill, which President Barack Obama signed into law on Tuesday, March 23. The plan, which will cost $940 billion over the next decade, has both the left and the right talking. While the jury is still out on how successful the reforms will be, below is an overview of who and what is affected:
How will America’s uninsured be affected?
Right now, 83 percent of Americans are insured, which means 32 million people are not covered. By 2014, the first year that every American will be mandated to have health insurance, the number of insured citizens is expected to total 95 percent.
How are health insurance plans being reformed?
Under the new law, insurance carriers are forbidden from placing lifetime dollar limits on policies; from denying coverage to children because of pre-existing conditions; and from cancelling policies due to illness. By 2014, insurance providers will be unable to deny people coverage or charge them more due to pre-existing conditions.
How will businesses be affected?
Employers with more than 50 employees must provide health insurance or pay a $2,000 fine per worker each year if any employee receives federal subsidies to purchase health insurance. Separate exchanges, implemented in 2013, will be created to assist small businesses in purchasing coverage.
What are the options for the uninsured or self-employed?
Both the uninsured and the self-employed will be able to purchase insurance through state-based exchanges with subsidies available for those between 133 and 400 percent of the poverty level. By 2014, everyone must purchase health insurance. Those who do not will face an annual $695 fine. Some exceptions will be made for low-income individuals and families.
How will this new reform impact the nation’s deficit?
Over the first 10 years, the reform bill will reduce the national deficit by $143 billion.
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