Today's Article
A Congressional
Research Service
(CRS) report offers
Americans an
easy-to-understand
explanation of this
complex bill.
Research Service
(CRS) report offers
Americans an
easy-to-understand
explanation of this
complex bill.
The American Spark
 |
 |
 |
 |
 |
What Exactly Is In The House Health Care Bill?
By Cliff Montgomery - Nov. 10th, 2009
The Congressional Research Service (CRS) on Oct. 30th, 2009, released an informative overview of the
Affordable Health Care for America Act, which the U.S. House of Representatives passed on Saturday.
The CRS report offers Americans a fairly easy-to-understand explanation of this complex bill.
The American Spark below quotes major parts of this telling CRS study:
"H.R. 3962, Affordable Health Care for America Act, was introduced in the House of Representatives on
October 29, 2009. H.R. 3962 is based on H.R. 3200, America’s Affordable Health Choices Act of 2009, which
was originally introduced on July 14, 2009, and was reported separately on October 14, 2009, by three House
Committees—Education and Labor, Energy and Commerce, and Ways and Means. [...]
"On October 29, the Congressional Budget Office (CBO) released a 'preliminary analysis' of H.R. 3962 that
projects the bill would reduce federal deficits by $104 billion over the 10-year period of 2010-2019 and, by
2019, would insure 96% of the non-elderly, legally present U.S. population.
"The gross 10-year cost of the Exchange subsidies ($605 billion), increased federal Medicaid expenditures
($425 billion), and tax credits for small employers ($25 billion) would total $1.055 trillion. Taking into account
employer and individual tax penalties and other issues pertaining to coverage, the net cost of the coverage
provisions, according to the CBO analysis, would be $894 billion over 10 years.
" 'Over the 2010–2019 period, the net cost of the coverage expansions would be more than offset by the
combination of other spending changes, which CBO estimates would save $426 billion, and receipts resulting
from the income tax surcharge on high-income individuals and other provisions, which JCT [the Joint
Committee on Taxation] and CBO estimate would increase federal revenues by $572 billion over that period,'
[according to a Congressional Budget Office letter to Rep. Charles Rangel]."
"In general, H.R. 3962 would require individuals to maintain health insurance and employers to either provide
insurance or pay a payroll assessment, with some exceptions.
"Several insurance market reforms would be made, such as modified community rating and guaranteed issue
and renewal. Both the individual and employer mandates would be linked to acceptable health insurance
coverage, which would meet required minimum standards and incorporate the market reforms included in the
bill.
"Acceptable coverage would include (1) coverage under a qualified health benefits plan (QHBP), which could
be offered either through the newly created Health Insurance Exchange (the Exchange) or outside the
Exchange through new employer plans; (2) grandfathered employment based plans; (3) grandfathered non-
group plans; and (4) other coverage, such as Medicare and Medicaid.
"The Exchange would offer private plans alongside a public option.
"Based on income, certain individuals could qualify for subsidies toward their premium costs and cost-sharing
(deductibles and co-payments); these subsidies would be available only through the Exchange.
"In the individual market (the non-group market), a plan could be grandfathered indefinitely, but only if no
changes were made to the terms and conditions of that plan, including benefits and costsharing, and
premiums were only increased as allowed by statute. Most of these provisions would be effective beginning in
2013.
"The Exchange would not be an insurer; it would provide eligible individuals and small businesses with access
to insurers’ plans in a comparable way.
"The Exchange would consist of a selection of private plans as well as a public option. Individuals wanting to
purchase the public option or a private health insurance not through an employer or a grandfathered non-
group plan could only obtain such coverage through the Exchange. They would only be eligible to enroll in an
Exchange plan if they were not enrolled in Medicare, Medicaid, and acceptable employer coverage as a full-
time employee.
"The public option would be established by the Secretary of Health and Human Services (HHS), would offer
three different cost-sharing options, and would vary premiums geographically. The Secretary would negotiate
payment rates for medical providers, and items and services.
"The bill would also require that the Health Choices Commissioner to establish a Consumer Operated and
Oriented Plan (CO-OP) program under which the Commissioner would make grants and loans for the
establishment of not-for-profit, member-run health insurance co-operatives. These co-operatives would provide
insurance through the Exchange.
"Only within the Exchange, credits would be available to limit the amount of money certain individuals would pay
for premiums and for cost-sharing (deductibles and co-payments).
"(Although Medicaid is beyond the scope of this report, H.R. 3962 would extend Medicaid coverage for most
individuals under 150% of poverty; individuals would be ineligible for Exchange coverage if they were eligible for
Medicaid.)"
Like what you're reading so far? Then why not order a full year (52 issues) of The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
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By Cliff Montgomery - Nov. 10th, 2009
The Congressional Research Service (CRS) on Oct. 30th, 2009, released an informative overview of the
Affordable Health Care for America Act, which the U.S. House of Representatives passed on Saturday.
The CRS report offers Americans a fairly easy-to-understand explanation of this complex bill.
The American Spark below quotes major parts of this telling CRS study:
"H.R. 3962, Affordable Health Care for America Act, was introduced in the House of Representatives on
October 29, 2009. H.R. 3962 is based on H.R. 3200, America’s Affordable Health Choices Act of 2009, which
was originally introduced on July 14, 2009, and was reported separately on October 14, 2009, by three House
Committees—Education and Labor, Energy and Commerce, and Ways and Means. [...]
"On October 29, the Congressional Budget Office (CBO) released a 'preliminary analysis' of H.R. 3962 that
projects the bill would reduce federal deficits by $104 billion over the 10-year period of 2010-2019 and, by
2019, would insure 96% of the non-elderly, legally present U.S. population.
"The gross 10-year cost of the Exchange subsidies ($605 billion), increased federal Medicaid expenditures
($425 billion), and tax credits for small employers ($25 billion) would total $1.055 trillion. Taking into account
employer and individual tax penalties and other issues pertaining to coverage, the net cost of the coverage
provisions, according to the CBO analysis, would be $894 billion over 10 years.
" 'Over the 2010–2019 period, the net cost of the coverage expansions would be more than offset by the
combination of other spending changes, which CBO estimates would save $426 billion, and receipts resulting
from the income tax surcharge on high-income individuals and other provisions, which JCT [the Joint
Committee on Taxation] and CBO estimate would increase federal revenues by $572 billion over that period,'
[according to a Congressional Budget Office letter to Rep. Charles Rangel]."
"In general, H.R. 3962 would require individuals to maintain health insurance and employers to either provide
insurance or pay a payroll assessment, with some exceptions.
"Several insurance market reforms would be made, such as modified community rating and guaranteed issue
and renewal. Both the individual and employer mandates would be linked to acceptable health insurance
coverage, which would meet required minimum standards and incorporate the market reforms included in the
bill.
"Acceptable coverage would include (1) coverage under a qualified health benefits plan (QHBP), which could
be offered either through the newly created Health Insurance Exchange (the Exchange) or outside the
Exchange through new employer plans; (2) grandfathered employment based plans; (3) grandfathered non-
group plans; and (4) other coverage, such as Medicare and Medicaid.
"The Exchange would offer private plans alongside a public option.
"Based on income, certain individuals could qualify for subsidies toward their premium costs and cost-sharing
(deductibles and co-payments); these subsidies would be available only through the Exchange.
"In the individual market (the non-group market), a plan could be grandfathered indefinitely, but only if no
changes were made to the terms and conditions of that plan, including benefits and costsharing, and
premiums were only increased as allowed by statute. Most of these provisions would be effective beginning in
2013.
"The Exchange would not be an insurer; it would provide eligible individuals and small businesses with access
to insurers’ plans in a comparable way.
"The Exchange would consist of a selection of private plans as well as a public option. Individuals wanting to
purchase the public option or a private health insurance not through an employer or a grandfathered non-
group plan could only obtain such coverage through the Exchange. They would only be eligible to enroll in an
Exchange plan if they were not enrolled in Medicare, Medicaid, and acceptable employer coverage as a full-
time employee.
"The public option would be established by the Secretary of Health and Human Services (HHS), would offer
three different cost-sharing options, and would vary premiums geographically. The Secretary would negotiate
payment rates for medical providers, and items and services.
"The bill would also require that the Health Choices Commissioner to establish a Consumer Operated and
Oriented Plan (CO-OP) program under which the Commissioner would make grants and loans for the
establishment of not-for-profit, member-run health insurance co-operatives. These co-operatives would provide
insurance through the Exchange.
"Only within the Exchange, credits would be available to limit the amount of money certain individuals would pay
for premiums and for cost-sharing (deductibles and co-payments).
"(Although Medicaid is beyond the scope of this report, H.R. 3962 would extend Medicaid coverage for most
individuals under 150% of poverty; individuals would be ineligible for Exchange coverage if they were eligible for
Medicaid.)"
Like what you're reading so far? Then why not order a full year (52 issues) of The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
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