Rescusitating Healthcare Reform
Feb 23
Resuscitating Healthcare Reform
President Obama released a healthcare reform bill this week in a move some are calling a last ditch effort at reconciling the stalled legislation in the House and Senate. The proposal is part of a larger concentrated effort at passing reform, which will culminate in a bipartisan healthcare summit at the Blair House on February 25.
The New York Times reports that Mr. Obama’s plan, “sticks largely to the version passed by the Senate in December but addresses some of the main concerns of House leaders who are demanding more help for the middle class.” The White House says the plan would provide coverage for 31 million uninsured Americans, but it does not carry a public option.
Republicans repeatedly have said they wanted the President to “start from scratch” with a bipartisan bill and have expressed opposition to the new proposal. The Washington Post quotes House Minority Leader John A. Boehner (R-Ohio) who said, “This new Democrats-only backroom deal doubles down on the same failed approach that will drive up premiums, destroy jobs, raise taxes, and slash Medicare benefits.”
So what’s in the proposal? You can examine it on the White House’s website and we’ve also highlighted key elements below.
Key Changes:
- Increases the threshold for the excise tax on the most expensive health plans from $23,000 for a family plan to $27,500. The excise tax would start in 2018 for all plans.
- Creates a new Health Insurance Rate Authority to provide Federal assistance and oversight to States in conducting reviews of unreasonable rate increases and other unfair practices of insurance plans.
- Closes the Medicare prescription drug “donut hole” coverage gap.
- Eliminates the Nebraska deal- a.k.a. the “Cornhusker Kickback”, which would’ve provided additional assistance to the state for any increased Medicaid costs it might encounter under new legislation. Instead, the President’s proposal provides additional Federal financing to all States for the expansion of Medicaid.
- Increases tax credits. Relative to the Senate bill, the President’s proposal lowers premiums for families with income below $44,000 and above $66,000. Relative to the House bill, the proposal makes premiums less expensive for families with income between approximately $55,000 and $88,000.(Source: http://www.whitehouse.gov/health-care-meeting)
- The President’s proposal also features a number of provisions outlined in the approved House and Senate Bill:
- Creates state-based health insurance exchanges to begin in 2014. With the exchanges, the President proposal adds new protections that prohibit annual and lifetime limits, ban pre-existing condition exclusions, and prohibit discrimination in favor of highly compensated individuals.
- Requires all individuals who have affordable health insurance options to either purchase insurance or make a payment. There is a “hardship” exemption for people who would face payments of more than 8% of their income.
The President’s proposal is consistent with the Senate bill in that it requires employers to help defray the cost of health insurance for their employees if taxpayers are footing the bill. Small businesses with fewer than 50 workers would be exempt from any employer responsibility policies.
(Source: http://www.whitehouse.gov/health-care-meeting)
To compare the Senate, House, and President’s Bill more closely, please visit Igor Volsky’s blog.
As for cost, the President’s proposal is estimated at $950 billion over a decade. The White House says the plan will reduce the deficit by $100 billion over the next ten years and by about $1 trillion over the second decade. However, it has yet to be evaluated by the nonpartisan Congressional Budget Office. Policy experts are already weighing in with their opinion; you can read Robert Laszewski’s perspective on The Healthcare Blog.
What do you think? Is this the way forward for healthcare reform? icyou wants to hear from you.




