[NYAPRS Enews] Reuters: Sen. Finance Approves Health Reform Bill; Comparison Of Sen. Health Bills

[Matt Canuteson]

NYAPRS Note: The U.S. Senate Finance Committee on Tuesday approved an
$829 billion health-care reform measure that would extend health
insurance coverage to an estimated 29 million people. The next step in
the process is to merge the Finance Committee bill and a measure
approved by the Senate Health, Education, Labor and Pensions Committee
in July in meetings set to begin as soon as later this week. Below you
will find a comparison of the major provisions of those two bills. 


 


FACTBOX: Comparison Of Senate Health Bills


Reuters October 13, 2009 


(Reuters) - Now that the Senate Finance Committee has approved its
version of healthcare reform legislation, Senate Democratic leaders will
merge it with a more liberal bill passed earlier by the Senate Health,
Education, Labor and Pensions Committee.

Here is a comparison of the major provisions of those two bills.

INSURANCE MARKET REFORMS

* Both bills require significant insurance market reforms and would bar
insurers from excluding people from coverage due to pre-existing
conditions. They would limit annual out-of-pocket expenses for consumers
and bar insurers from placing lifetime caps on coverage.

* The two bills would establish new state-based insurance markets for
individuals and businesses to shop for coverage, known as "gateways" in
the HELP bill and "exchanges" in the Senate Finance bill.

* The Senate Finance bill provides for a less expensive catastrophic
medical plan for young adults 25 years old and younger. HELP bill
provides for young adults up to age 26 to stay on their parents'
polices.

* Both bills set minimum benefit packages that would be offered through
the "gateways" or "exchanges." The two bills vary on those minimum
benefits.

COVERAGE OPTIONS

* The HELP committee bill would set up a new government health plan, or
"public option", that would compete with private insurers. The plan
would be financed through premiums and negotiate rates with doctors and
other providers.

* The Senate Finance bill provides for the creation of nonprofit
member-owned healthcare cooperatives.

* The Finance panel bill provides states the option of creating a new
health plan for people with incomes between 133 percent and 200 percent
of poverty.

* Both bills expand eligibility for Medicaid, the health program for the
poor. HELP would expand it to include everyone up to 150 percent of
poverty, Senate Finance would open Medicaid to everyone up to 133
percent of poverty.

MANDATES AND AFFORDABILITY

* Both bills requires individuals to obtain health insurance and impose
penalties for those who fail to obtain it. Senate Finance bill phases
penalties in over five years and has a smaller penalty on families that
fail to obtain coverage.

* HELP Bill requires firms with more than 25 employees to offer health
coverage to workers and pay at least 60 percent of the premium or pay
$750 for each uninsured full time employee and $375 for each part-time
worker who is not offered coverage.

* Senate Finance bill has no employer mandate. But firms with more than
50 employees would have to pay a fee to cover any tax subsidies for
workers who obtain coverage through the newly created insurance
exchange. The fee would be capped at $400 times the number of full time
employees.

* Both bills provide a sliding scale of subsidies to help people with
incomes up to 400 percent of the federal poverty level afford health
coverage. The subsidies vary between the bills and the Senate Finance
provides the aid in the form of refundable tax credits.

* The two bills provide aid to small businesses to help purchase
coverage.

* Both bills create a temporary reinsurance program to help employers
provide coverage for retirees between the ages of 55 and 64.

FINANCING

* Only the Senate Finance Committee has jurisdiction over taxes and the
Medicare and Medicaid programs. Savings in those two government programs
are estimated at $404 billion over 10 years.

* The Senate Finance bill also includes a number of revenue raising
provisions including a tax on high-cost health care plans. The bill also
includes a number of new fees on insurance companies and other
healthcare industries including pharmaceutical companies.

 

 

 

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