My original intent was to summarize last year's posting on Health Care in various countries and discuss various options that have been suggested for America. However , the process has moved way beyond a theoretical stage and soonedr or later a definitive bill will b e sent to the Prersident for his signature. Therefore, I now going to post the differences between the p[lans that are for vote in each house and I will also keep up with new developoments including objections for various sectors that will be affected by any plan put into effect.
As of 7/18/09 there are three different health care bills working their way through Congress: The Senate Committee on Health, Education, Labor, and Pensions (HELP) approved its 651 page bill this past week. The Senate Finance Committee is working on a bipartisan bill. The House Democrats in three committees are working on a single plan. Both “Ways and Means” and ‘Education and Labor” committees have approved the over 1000 page House version. The House Energy and Commerce committee must still approve the bill before it can reach the floor for a vote.
Within the past few days there has been an undercurrent in Congress questioning the potential negative impact on employment as well as costs if the bills are past as presently constituted.
The present Senate version requires employers with 25 or more workers to contribute at least 60% of the premium cost for their full time workers. There is a penalty of $750 for each full time worker and $375 for each part time worker not cove red.
The proposed House version requires employers with an annual payroll larger than $$250,000 to contribute 72.5% of the premium for full time workers and 65% for the families. The penalty for the employer with an annual payroll of $400,000.00 is a payroll tax of up to 8%.
In the realm of Individual mandates both require most individuals to have a minimum level of insurance. The Senate b ill exempts American Indians and those who can’t afford insurance e or live in states without insurance exchanges. There is a penalty for non compliance up to $750 a person each year.
The present House bill Exempts those who cannot afford insurance, dependents, and those with religious objections. The penalty is 2.5% of adjusted gross income over a certain level (example; $18,000.00 for a childless couple.)
These are two of at least eight distinct items covered in the bills. I intend to do a few more each posting.
Dear Doc,
ReplyDeleteI have been following your reports on Health Care Reform and I truly appreciate your time and effort in helping us digest all the information, but I have a question:
Is so far any mention on what this reform will mean to the Self-Employed, or Small Business Owners with less than 25 employees?
I will appreciate any insight on this.
Thanks!
Maria Pellum
Maria,For a lay person like myself to try to read either bill and make sense would take years. The Senate Bill is full of substitution of phrases or words in multiple other existing legislation, and I have not attepted the House version. I doubt if any of teh legislators fully understand what is in each bill. They rely on staff to interpret and analyze what they are voting into law.Likewise I am sure the President has the same problem.
ReplyDeleteI am dependent on printed sources. Thus my opinion which may be wrong, in the Senate version employers with less than 25 workers haver no specified financial commitment to their employee's insurance premium. In the House bill the Targety point is not numbers but annual payroll. $250,000. the cut off. THus if you had 10 or 5 or 50 workers earning a total of $250K or more a year you would be subject to the employer's requirements.
Once the final bill becomes law then the tax accountants will have a field day interpretating its provisions.This will stimulate the economy as there will be a new industry of convnet6ions, clinics, classes etc. to teach the requirements that will be effective.