Vote on the Health Care Overhaul Bill

Under Blog | Posted by CETRA Admin

Below are the key components of the $940 billion health care overhaul bill (H.R. 3590) that is scheduled to take almost a decade to roll out in full. Click here to cast your vote!

2010 – Coverage

  • Subsidies begin for small businesses to provide coverage to employees.
  • Insurance companies barred from denying coverage to children with pre-existing illness.
  • Children permitted to stay on their parents’ insurance policies until their 26th birthday.

2011 – Coverage and Taxes/Fees

  • Set up long-term care program in which people pay premiums into system for at least five years and then become eligible for support payments if they need assistance in daily living.
  • Drug makers face annual fee of $2.5 billion (rises in subsequent years).

2013 – Coverage and Taxes/Fees

  • New Medicare taxes on individuals earning more than $200,000 a year and couples filing jointly earning more than $250,000 a year. Tax on wages rises to 2.35% from 1.45%. New 3.8% tax on unearned income such as dividends and interest.
  • Excise tax of 2.9% imposed on sale of medical devices.

2014 – Coverage and Taxes/Fees and Cost Control

  • Create exchanges where people without employer coverage, as well as small businesses, can shop for health coverage. Insurance companies barred from denying coverage to anyone with pre-existing illness.
  • Requirement begins for most people to have health insurance. Subsidies begin for lower and middle-income people. People at 133% of federal poverty level pay maximum of 3% of income for coverage. People 400% of poverty level pay up to 9.5% of income. (Poverty level currently is about $22,000 for a family of four.)
  • Medicaid, the federal-state program for the poor, expands to all Americans with income up to 133% of federal poverty level.
  • Subsidies for small businesses to provide coverage increases. Businesses with 10 or fewer employees and average annual wages of less than $25,000 receive tax credit of up to 50% of employer’s contribution. Tax credits phase out for larger businesses.
  • Independent Medicare board must begin to submit recommendations to curb Medicare spending, if the costs are rising faster than inflation.

2016 – Taxes/Fees

  • Penalty for those who don’t carry coverage rises to 2.5% of taxable income or $695, whichever is greater.

2017 – Coverage

  • Businesses with more than 100 employees can buy coverage on insurance exchanges, if state permits it.

2018 – Taxes/Fees

Excise tax of 40% imposed on health plans valued at more than $10,200 for individual coverage and $27,500 for family coverage.

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