Healthcare Reform Bill Approved by Senate

The much-debated healthcare reform bill passed Senate approval on
December 24, 2010, giving President Obama a Christmas gift ready to be
passed into law. Here are some of the details of the healthcare reform
bill, and the sticking points that made Democrats and Republicans so
polarized over it.
Coverage

Once the bill is signed by the President, the following will be major
changes in how the government pursues subsidized healthcare:

- The government will subsidize healthcare insurance to the tune of
$88,000 a year for a family of four. That's 400% of the federal
poverty level.

- Health insurance exchanges will be set up for small businesses, the
unemployed and self-employed people so that they can combine their
resources and purchase cheaper coverage.

- Out-of-pocket expenses will be limited, and insurance companies
won't be able to deny coverage if there is a pre-existing condition.

- Gender and medical history will not be a factor in premiums, though
age still will be.

- Individuals must purchase healthcare insurance, or face a fine that
ranges from 2% to 2.5% or $750, whichever is higher. There will be an
exemption for people with low or very low income.

- Companies with a $500,000 payroll or more are required to provide
insurance, or face a penalty equal to about 8% of the said payroll. In
the Senate bill, companies with 50 or more employees must
set aside up to $750 for each person if anyone relies on the
government for coverage.

Medicare and Medicaid

Medicare will be trimmed by about $500 billion less, and linked to
that will be a 40% tax on insurance companies that provide so-called
"Cadillac" plans whose values are more than $8,500 for single persons
and $23,000 for families

Medicaid, on the other hand, will be expanded, extending individual
coverage up to 150% of the poverty level ($33,000 per family of four).
The Senate version puts this up to 133%, or $29,000.

Points of debate

Aside from the traditional argument of how the proposed changes will
pay for themselves, the idea of a public option for healthcare
insurance became a hot topic. But with weak support for the idea, it
seems that the public option clause may become a casualty of the push
for the bill's approval.
The question of abortion being paid for by health insurance has also
become a battleground. The latest move seems to be that it will have
to be paid either by private insurance coverage, or out of one's own
pocket. Most, if not all forms of federal subsidies or
government-based insurance will not be able to pay for abortions.