What If Reconciliation Fails?
Mike Lillis 3/22/10 10:55 AM
With the House last night passing its health care reconciliation bill, the measure moves to the Senate this week, where Democratic leaders are claiming they’ve got the 51 votes needed to pass it. We’ll take them at their word. But just in case, it’s worth noting what it would mean if the larger, Senate-passed reform bill (which the House also approved yesterday) becomes law by itself. The biggies:
1) Insurance Subsidies: The Senate bill, while requiring most Americans to buy health insurance, also subsidizes plans for those living below 400 percent of the federal poverty level ($88,200 for a party of four). The subsidies would come on a sliding scale such that premiums would be capped at 2.8 percent of income for those living at 134 percent of poverty, and 9.8 percent of income for those living between 300 and 400 percent of poverty.
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4) Individual Mandate: The Senate bill requires most Americans to buy health insurance or pay a financial penalty of either $750 or 2 percent of income, whichever is larger. The reconciliation bill would alter the penalty slightly, to the larger of $695 or 2.5 percent of income.
5) Medicaid Rates: While expanding Medicaid coverage to include most folks living below 133 percent of the federal poverty level, the Senate bill would leave Medicaid rates alone. This is a problem, because Medicaid rates are so low that more and more doctors are refusing to see those patients. Recognizing that there’s little value in a health insurance program that doctors don’t accept, House leaders in their reconciliation bill hiked Medicaid rates for primary care services to at least the level that Medicare pays.
further rundown:
http://washingtonindependent.com/79923/what-if-reconciliation-fails