Parsing the House Health Bill

[DearAbby]

With the House health bill passed, Congress moves a step closer to making the biggest changes to the health system in more than four decades. Here's a look at what the bill would mean for various groups:

The uninsured: They're the biggest winners under the bill. Starting in 2013, it gives government subsidies to a chunk of low- and middle-income Americans and expands Medicaid to cover a greater swath of the poor. At the lowest income level, the subsidy would keep a family of four earning just over $29,000 a year from paying more than 1.5% of their income on insurance premiums. It reaches as far up as a family of four earning about $88,000 a year, so they would pay no more than 12% of their income toward insurance.

Shopping for insurance would probably get easier since the bill creates new exchanges designed to allow consumers who buy their own policies to compare plans side by side. One of those plans would be a government-run insurance plan, also known as the "public option."

Obtaining coverage would get easier because the bill prohibits insurance companies from denying coverage to people over pre-existing health conditions.

But for those who don't want insurance, there's a downside. Once these changes take effect, people who choose to go uncovered would generally have to pay a penalty equal to as much as 2.5% of their income.

The insured: Democrats tried to pack the bill with benefits for this group, but the upside is less tangible and some of the wealthy would see higher taxes. Most consumers would see their out-of-pocket medical costs capped at $5,000 a year for individuals and $10,000 a year for families. Insurance companies could no longer drop coverage when customers got sick.

Some perks would go away. Employees with tax-free flexible spending accounts could no longer use them to buy over-the-counter medicines, and they couldn't put more than $2,500 a year in the accounts.

To finance the overhaul, individuals who earn more than $500,000 a year or families making $1 million or more annually would pay a new 5.4% tax on top of existing income taxes.

more at link
http://online.wsj.com/article/SB125763756556136303.html

[greenbriar]

1. great summary

Thanks

[old mark]

2. Thanks for this. My wife was worried that the new laws -if finally passed- would penalize us.

We have just enough income to be above the poverty level, not enough to afford to be without Medicaire drug benefits.
Rec.
mark

[sandnsea]

3. It expands Medicaid to 150% of poverty

Are you talking about that poverty level, or the current poverty level. It's also going to work towards removing the doughnut hole, so that might help you guys too. I don't know what it will do for supplemental insurance, that's something else we need to know.

[old mark]

6. Yeah-that ridiculous donut hole, a GOP provision - they really hate to see

regular people get any advantage, want to save it all for their rich contributors.

Thanks.

mark

[DearAbby]

4. Kick for Sunday reading

[JDPriestly]

5. The deductible is much, much to high for ordinary families.

That is one of the worst things about this bill.

[ncteechur]

7. details?