Obama’s Health Care Reform Has Passed!
Sun, Mar 21, 2010
We want to know what you think about this historic news. As a baby boomer, how do you feel about the bill? Do you approve or disapprove?
Here is a summary of the bill from CBS News:
Coverage:
- Would expand coverage to 32 million Americans who are currently uninsured.
Health Insurance Exchanges:
- The uninsured and self-employed would be able to purchase insurance through state-based exchanges with subsidies available to individuals and families with income between the 133 percent and 400 percent of poverty level.
- Separate exchanges would be created for small businesses to purchase coverage — effective 2014.
- Funding available to states to establish exchanges within one year of enactment and until January 1, 2015.
Subsidies:
- Individuals and families who make between 100 percent – 400 percent 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.
Federal Poverty Level for family of four is $22,050
Paying for the Plan:
- Medicare Payroll tax on investment income — Starting in 2012, the Medicare Payroll Tax will be expanded to include unearned income. That will be a 3.8 percent tax on investment income for families making more than $250,000 per year ($200,000 for individuals).
- Excise Tax — Beginning in 2018, insurance companies will pay a 40 percent excise tax on so-called “Cadillac” high-end insurance plans worth over $27,500 for families ($10,200 for individuals). Dental and vision plans are exempt and will not be counted in the total cost of a family’s plan.
- Tanning Tax — 10 percent excise tax on indoor tanning services.
Medicare:
- Closes the Medicare prescription drug “donut hole” by 2020. Seniors who hit the donut hole by 2010 will receive a $250 rebate.
- Beginning in 2011, seniors in the gap will receive a 50 percent discount on brand name drugs. The bill also includes $500 billion in Medicare cuts over the next decade.
Medicaid:
- Expands Medicaid to include 133 percent of federal poverty level which is $29,327 for a family of four.
- Requires states to expand Medicaid to include childless adults starting in 2014.
- Federal Government pays 100 percent of costs for covering newly eligible individuals through 2016.
- Illegal immigrants are not eligible for Medicaid.
Insurance Reforms:
- Six months after enactment, insurance companies could no longer denying children coverage based on a preexisting condition.
- Starting in 2014, insurance companies cannot deny coverage to anyone with preexisting conditions.
- Insurance companies must allow children to stay on their parent’s insurance plans through age 26.
Abortion:
- The bill segregates private insurance premium funds from taxpayer funds. Individuals would have to pay for abortion coverage by making two separate payments, private funds would have to be kept in a separate account from federal and taxpayer funds.
- No health care plan would be required to offer abortion coverage. States could pass legislation choosing to opt out of offering abortion coverage through the exchange.
**Separately, anti-abortion Democrats worked out language with the White House on an executive order that would state that no federal funds can be used to pay for abortions except in the case of rape, incest or health of the mother. (Read more here)
Individual Mandate:
- In 2014, everyone must purchase health insurance or face a $695 annual fine. There are some exceptions for low-income people.
Employer Mandate:
- Technically, there is no 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.
Immigration:
- Illegal immigrants will not be allowed to buy health insurance in the exchanges — even if they pay completely with their own money.
I do like the 35% tax credit for small businesses over the next 4 months and I have to think it’s better than what’s out there now.
It is so sad how I have become immune to anything the government says. I just can’t believe a word of any of it, especially the fuzzy accounting. How much is this REALLY gonna cost!? Sometimes, I want to just up and move to another country. Been saying that for almost 40 years now
I agree with Sarge. There are so many different prices flying around one doesn’t know what to believe. One thing I believe is the deficit will increase because of this law and not decrease as the Gov. is telling us.
I look at the other social plans such as social security, medicare and medicaid and believe the new health care will follow in their footstep.
I wish someone would tell me one thing the Government has had a hand in that hasn’t either failed or cost billions of dollars more than they said it would cost.
God love Congress. They’re trying to deliberately increase taxes and reduce our pay. What do you think employers will do when their expense per employee goes up?
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I think this is a very small step in the right direction. I disagree with Benita. I don’t care about the taxes. It has been in my mind to live in Canada where they have a national health care system. I think that’s what we need and I don’t mind paying for it. For those who say they don’t and don’t want their taxes to go the few percent it would, I would ask, what child do you want to die with no health care because you don’t want your taxes to go up?
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I think we should have attacked health care costs first before we tried to tackle the problem of universal coverage. No child will ever die in this country because of a lack of health insurance. Emergency rooms are mandated to treat everyone. The bill, as I see it, basically makes health insurance companies public utilities which will have their rates regulated by the government. Funny how there’s no cap on how high premiums can be raised after the indignation over the recent 35% rise in health care premiums by a carrier in California.
A few things happened along the way that left a bad taste in a lot of people’s mouths. Any bill that is 2000+ pages long is hardly transparent. And no one really knew (knows) exactly what is in the bill until after it was passed. Congressional Democrats refused to include suggestions that the Republicans made at the health care summit that had the approval of the President. Also, if you notice in the article, the payroll tax increases in 2012 and the majority of the bill goes into effect in 2014. So we got a estimation of an 8 year bill paid out over 10 years. If we could do that with Social Security and Medicare, their problems would be solved too. But then again who would want to give up their Social Security or Medicare 20% of the time.
I doubt even the healthiest youths will be able to find a policy with premiums less than $700 a year so they’ll most likely just remain uninsured and pay the penalty. And if a big company is going to be fined $2000 an employee for not carrying health insurance, how long do you think health insurance will be covered by your company. When I paid 18 months of COBRA 20 years ago my premiums were over $300 a month. I can only imagine how much employers are paying per employee now but they will soon have no incentive to pay more than $2000 a year.
The good parts of the bill have to do with preventative care. Medicare not covering annual check-ups has always been a silly idea. Also, huge savings will result from technology especially in medical records. That was already happening. I don’t see it reducing the amount of CMA tests doctors order. Diagnostic tests are important. But some doctors will order just about everything so that there’s no chance of litigation against them. That’s not the government’s fault though. Individuals should be educated on the true costs of sky high malpractice awards. We’re the people that make up the juries that propel health costs upward so fast.
My main worry reflects those of some of the others here. Government programs usually cost more than estimated. Waste and fraud are entrenched in Medicare as well as most other government programs. The only other field I can think of where we have government and private competition is education. It hasn’t helped to keep down the costs of a college education. Tuition rises at a rate about twice that of the overall inflation rate. We can only hope that successive sessions of Congress don’t turn their back on this issue now that the big bill has been passed. Diligence and adaptation are what will make increasing health care coverage work, and with any luck and non-partisan intelligent thought in Washington, D.C. what will more importantly bring down health care costs for all of us. It’s just that now besides premiums and co-payments and deductibles now we have taxes included in what we pay for health care. Washington wanted this problem; it’s up to us to elect a Washington that will make sure that it’s not another $600 hammer.
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This is a government take over, regardless of what type of spin democrats are putting on it. Forcing people to have health insurance and fining them if they dont, and creating a bigger deficit than we already have. This is ridiculous. This is the land of the free and the united states stands for democracy, we should not be forced to do buy health insurance.
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It is a big step forward in changing our country from a Constitutional Republic to a Socialist state.
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I listen to bloomberg every morning and one day last week they said that because of this new law caterpillar is going to get hit with $100 mil in new taxes. This is the same caterpillar that the present embarrassed himself by promising them new jobs (only to have the ceo rebuff the statement and say he actually had to lay off more people).
who in their right mind doesn’t think this is going to cost some people their jobs?!?
wonder if the president would like to revisit the company again with his cheerleading ways and see what they think of him now?
PS – 10000% agree with Delton’s statement:
“I wish someone would tell me one thing the Government has had a hand in that hasn’t either failed or cost billions of dollars more than they said it would cost.”
Hey Sarge15, we’re thinking about moving to Australia if our economy or health care goes south. I can’t think of any other place to go.
Tinaweha: Try Canada, France or Germany. Our “healthcare reform” is over 2000 pages – Germany is 8 pages. All three of the above countries have longer life spans and lower birth deaths than the US, and we are considered the wealthiest nation?
Watch out! We can debate all of the particulars of this law but one thing is for sure, we all will have to go to the government for our health care now. Their intrusion into our lives will only continue until the nation that we love will no longer exist. When the so called leaders ignore the will of the people with their move to take over such a large portion of the economy, they no longer represent us, they rein over us.
Don’t you know that this is correct time to get the loans, which will help you.
We baby boomers are easily, the most naive’ generation I have ever witnessed – and, I am one of ‘em. What is my problem with healthcare? Let me count the ways:
1. It’s unconstitutional
2. It’s a privilege, not a right
3. It’s based on socialism, which our “government” is not
4. It’s real cost is in the trillions of dollars
5. It’s based on a babyboomer’s ability to “pay it forward”
6. It’s success is based on our leaders hope that we will be afraid to take care of ourselves in our old age
7. It’s a veiled attempt to stave off the obvious – we younger baby boomers WILL NOT SEE the money we invested into Social Security (it’s monies were withdrawn years ago) – so, in order to avoid a looming political meltdown; our beloved leaders created “Healthcare.”
Come one people… think!!!!
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It’s unconstitutional! Pushed upon us by a socialist president. God help us if he gets re-elected.
I only have a part time job and work only 30 hrs a week. I work for a school district so when we don’t have school for whatever reason, i don’t get paid. I don’t have a job during the summer and can’t get anyone to hire me for summer help. This fine they want to impose on those that don’t have insurance is just crazy. I can’t afford insurance so how am I supposed to afford a stupid fine? Our government really sucks and it seems to me we are going to be turned into a communist country before its all over.
I came across this tread and was very surprised to see that no one had commented on the recent Supreme Court hearings on the constitutionality of ObamaCare.
First of all, from all accounts, the administration’s lawyers did an AWFUL job arguing their point about the insurance mandate. So certainly we will see the Supreme Court overturn the individual mandate.
Second, the arguments were more clouded on the third day…whether or not the remaining provisions of the law will be allowed to stand if the mandate is overturned.
Some of these provisions have nothing to do with the mandate, but because many of them were going to be paid for by the mandate and the fines, it becomes very unclear as to whether or not the Supreme Court will overturn the whole law.