Healthcare Reform Update - 23Feb10

We will continue to monitor healthcare reform news and send out updates as they are relevant. There may be an increase in pertinent news for us to share as Obama’s healthcare summit will be held on Thursday, 25Feb10. http://www.politico.com/news/stories/0210/33275.html
 
Please note that, although the momentum for healthcare reform appears to be building back up, it is still not clear whether Congress will move ahead with a comprehensive bill amid the current political environment.
 
"Obama Unveils New Healthcare Reform Proposal in Anticipation of Thursday Debate"
  • President Obama released a $950 billion healthcare reform proposal Monday morning.
  • The proposal will serve as the starting point for negotiations by Congressional leaders at a bipartisan healthcare summit.
  • This version is intended to reflect many of the compromises reached during the conference committee before Senator Scott Brown’s election.
  • Basically Obama’s proposal is very similar to the Senate bill that was being used as a basis for these compromises.
  • Here are some notable changes:
    • Delays the tax on high-cost health insurance policies for all plans until 2018, and raises the threshold at which the tax would kick in to $27,500 for an annual family plan, up from $24,000.
    • Maintains the state-based exchange system under the Senate bill, rather than the national marketplace envisioned by the House.
    • Pushes back implementation of the taxes on various healthcare industry players, and changes the fee on medical device manufacturers to an excise tax.
    • Boosts measures to crack down on waste, fraud and abuse in Medicare.
    • Fully closes the “donut hole” for Medicare prescription drug beneficiaries.
    • Lowers the penalty on individuals who don’t purchase insurance to $325 in the first year.
    • Raises the Medicare payroll tax on couples earning more than $250,000 a year.
    • Gives the federal government sweeping new powers to curb exorbitant rate hikes by health insurance companies.
    • Boosts tax subsidies for low- and moderate-income individuals to purchase insurance and bigger penalties on larger employers that do not provide health insurance. Absent in Obama’s plan is a public health insurance option.
  • Read more:

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