Senate Passes Health Care Reform Bill – A Look at Differences in Bills
December 25, 2009 – 5:30 amThe Senate has passed its version of health care reform. Now there are two bills and reconciliation must take place.
Let’s look at some key differences (to the extent time would allow I have garnered these differences directly from the legislation or from legislative summaries) between the Affordable Health Care for America Act (House) and the Patient Protection and Affordable Care Act:
- How Will Effect Employers? – Larger employers will be mandated to provide coverage by both versions. The Senate Bill requires coverage for employers with more than 50 employees and will penalize the employer at $750 per employee if the employee is receiving subsidized coverage. The House Bill exempts employers under $500,000 in payroll and imposes an 8% tax on non-compliance based on payroll.
- How Will Individuals be Affected? -Individuals must purchase insurance or pay a 2.5 percent of income penalty under the House Bill while the Senate Bill will fine non-compliance from $95 to $750 beginning in 2014.
- What Happens to my Current Health Plan? – Nothing. The Bills must be consolidated, regulations created, and then imposition of the reform would be over time to 2014-19. Immediate action is not required; but, planning with your insurance professional is a good idea.
- I Heard Illegal Immigrants Will Overwhelm the System? – Both Bills Bar illegal immigrants from government subsidies. The House Bill would allow illegals to buy (with their own funds) insurance from an exchange. I could not determine if illegals are counted in payroll amounts and number of employees – if a reader can point me to that answer I would appreciate it.
- Will There be a Tax-Credit for Businesses? – Smaller employers get a tax credit for providing coverage to employees under both bills; but, the House Bill designates that as less than ten employees.
- Will There be Help for Individuals? – Both plans envision tax credits for individuals purchasing coverage who are below 400% of the poverty line. Most summaries claim this is about $88,000 for a family of four. However, such credits would not be applicable until 2013 or 2014, so it is difficult to predict a dollar figure on the income test for a credit.
There are innumerable other differences and the final result remains to be seen.
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