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The Facts About the New Healthcare Bill

March 24, 2010 | Healthcare | My Ramblings | No Comments

It’s shameful that President Obama and the Democrats have worked so hard to reform healthcare and there are so many people still against it.  The people against it, I assume have healthcare insurance and don’t really care about their fellow neighbor who can’t get healthcare insurance because of a preexisting condition or who can’t afford it.   Or maybe they are just diehard Republicans.  However, I’m certain the 32 million people who don’t have health insurance are happy.  Although the healthcare reform bill isn’t perfect it sure is a very good first step.

Below are facts about the Healthcare Reform Bill:


  • According to the CBO (Congressional Budget Office), the bill will reduce the deficit by an estimated $143 billion in first 10 years.



  • Expands coverage to approximately 32 million Americans currently uninsured.


Health Insurance Exchanges:

  • Uninsured and self-employed will be able to buy insurance through state-based exchanges with subsidies available to individuals and families with income between the 133% and 400% of poverty level.
  • In 2014 Separate exchanges will be created for small businesses to purchase coverage.
  • States will be funded to create exchanges within one year of enactment and until January 1, 2015.



  • Individuals and families who earn between 100% and 400% of the Federal Poverty Level (FPL) and want to purchase their own health insurance on an exchange are eligible for subsidies. They cannot be eligible for Medicare, Medicaid and cannot be covered by an employer. Eligible buyers receive premium credits and there is a cap for how much they have to contribute to their premiums on a sliding scale.



  • Closes the Medicare prescription drug “donut hole” by 2020. Seniors who hit the donut hole by 2010 will receive a $250 rebate.
  • Starting in 2011, seniors in the gap will receive a 50% discount on brand name drugs. The bill also includes $500 billion in Medicare cuts over the next decade.



  • Medicaid expanded to include 133% of federal poverty level which is $29,327 for a family of four.
  • States will be required to expand Medicaid to include childless adults starting in 2014.
  • Federal Government pays 100% of costs for covering newly eligible individuals through 2016.
  • Illegal immigrants are not eligible for Medicaid.


Insurance Reforms:

  • After six months insurance companies can no longer denying children coverage based on a preexisting condition.
  • In 2014 insurance companies cannot deny coverage to anyone with preexisting conditions.
  • Children can stay on parent’s insurance plans until age 26th.



  • Private insurance premium funds are segregated from taxpayer funds. Individuals will have to pay for abortion coverage by making two separate payments.
  • No health care plan will be required to offer abortion coverage. States can pass legislation choosing to opt out of offering abortion coverage through the exchange.


Individual Mandate:

  • In 2014, everyone must purchase health insurance or face a $695 annual fine. However, there are exceptions for low-income people.


Employer Mandate:

  • Employers with more than 50 employees must provide health insurance or pay a fine of $2000 per worker each year if any worker receives federal subsidies to purchase health insurance. Fines applied to entire number of employees minus some allowances. Technically, there is no employer mandate.



  • Illegal immigrants will not be allowed to buy health insurance in the exchanges.


Source: CBS News


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