Joe Fairbanks, put this one page explanation together.  It is very informative.

 

NATIONAL HEALTH CARE REFORM:

WHAT IT MEANS AND WHAT’S NEXT

WHAT SENATE FINANCE BILL DOES…

• Expand Medicaid to all Americans under 133% of FPL (~$30,000 for family of 4)

• Requires all individuals to have health insurance or pay a penalty

• Public Option included with states having option to opt-out

• Community Rating (no premium variation) and Guaranteed Issue (if you apply, you get it—no pre-existing condition exclusion) of all health plans

• Creates a National Exchange on which all private, group, and public plans must be listed. Individuals and employers would purchase health plans from the exchange.

• Employers with more than 50 employees are required to provide coverage or pay a fee

• Tax Credits available for individuals and families between 134-300% of FPL

HOW THEY PAY FOR IT…

• Congressional Budget Office estimates plan will cost $829 billion over 10 years and reduce deficit by $81 billion (News taxes and fees are collected immediately, while expenditures aren’t made until 2013, so it’s 7 years of the program paid for with 10 years of tax revenue)

• Cut approximately $200 billion from Medicare provider rates (Congress will re-instate rates after bill passes, thereby eliminating any savings)

• Tax imposed on all “gold-plated” plans

• Non-Compliance fees and taxes

WHAT’S WRONG WITH IT…

• Leaves approximately 25 million uninsured

• Fails to address quality and cost aspects of health care.

• Obliterates state budgets, as states must pay for part of Medicaid expansion

• Fails to foster competition

• Will explode health costs through Community Rating and Guaranteed Issue• No provisions to provide for more physicians

WHAT’S NEXT…

• Bill must be merged with Senate HELP Committee’s bill, then voted on by full Senate. Must receive at least 60 votes. (Republicans that could be for: Snowe, Collins, Voinovich; Democrats that could be against: Bayh, Nelson, Lieberman, Lincoln, Landrieu, Dorgan, Baucus)

• Once the bill passes the Senate, it will go to a conference committee with the House.

• Conference bill must once again garner 60 votes in Senate.

• Alternative: Reconciliation Budget Maneuver. Only 51 votes required in Senate. Bill sunsets in 10 years and may only address budget issues.