Changes to Health Bill Are released by Democrats

For those Americans who decide not to purchase medical insurance coverage could be hit with fines of more than $1,000 under a healthcare overhaul bill unveiled yesterday by key Senate Democrats looking to fulfill President Obama’s top domestic priority.

The program, which includes a government-run insurance program as an option to private coverage, drew praise from President Barack Obama.

Kennedy, a Massachusetts Democrat, and Senator Chris Dodd, a Connecticut Democrat, stated in a letter to members of the Senate Health, Education, Labor and Pensions Committee that the plan will cost $611.4 billion over 10 years, citing an analysis by the non-partisan Congressional Budget Office.

The health committee’s plan builds on an partial version that was much picked apart two weeks ago when the Congressional Budget Office reported that it could cost more than $1 trillion over 10 years and still leave up to 37 million Americans uninsured. That budget report was widely considered a setback for a health care overhaul, Mr. Obama’s top domestic priority.

Senator Chris Dodd said in a conference call with reporters that the amended bill as well as cost estimate set the committee on a path toward passing a reform bill. Mr. Dodd has been leading the effort in Washington while Mr. Kennedy has been fighting brain cancer.

“Our bill, combined with the work being done by our colleagues in the Finance Committee, will dramatically reduce the number of uninsured - fully 97 percent of Americans will have coverage, a major achievement,” the senators wrote in a letter to colleagues.

Under the proposition, firms with 25 or more employees that don’t offer coverage would pay a fee of $750-per-year for full-time workers and $375-per-year for part-time workers.

One Response to “Changes to Health Bill Are released by Democrats”

1. hsr0601 says:

   rdAmerica/Chicagop31America/Chicago07bAmerica/ChicagoFri, 03 Jul 2009 10:12:03 -0500 1, 2008 at 10:12 am

   The independently-funded healthcare policy research organization, The Commonwealth Fund, compared possible savings ‘a health insurance exchange’ could bring under three different scenarios. One would include a Medicare-like plan along with private insurance. Another would instead offer only a government-run plan with rates somewhat higher than Medicare. The final one would be private insurance with no government plan at all.
   Commonwealth’s study found cumulative health system savings between 2010 and 2020, compared with projected trends for that period, would range from $3.0 trillion under a Medicare-like plan along with private insurance paying providers at Medicare rates in competition with private plans, to $2.0 trillion for a public plan paying providers at rates between Medicare and private plan rates, to $1.2 trillion in the private plan-only scenario. All three options would help insure nearly all Americans, it said, with the number of uninsured dropping to about 4 million people by 2012. ‘Such an exchange’ would offer a central point for consumers to shop for and compare health plans.

   Under the Medicare-like plan along with private insurance, all U.S. residents would be required to obtain health coverage. The plan would establish a new government-sponsored health program for people younger than age 65 who are not eligible for Medicare. More than 40 million people would be expected to enroll in the program, according to Cathy Schoen of the Commonwealth Fund.

   The government-operated insurance exchange would be similar to an existing program in Massachusetts and would allow people to compare coverage offered by private insurers and the new public program. In addition, the plan supports wide adoption of health information technology, better disease prevention efforts and ‘changes to the insurance payment system’ that promote efficiency. Health spending would continue to increase under the plan, but at a slower rate than current projections over the next 10 years. The Commonwealth Fund said the plan would reduce annual health care spending growth from a projected 6.7% to 5.5% and save a cumulative total of about ‘$3 trillion’ by 2020, adding a national health insurance exchange program that includes a federally managed health insurance option could potentially save $1.8 trillion more than a plan consisting only of private plans.
   The group’s analysis assumed other changes would also be made to the U.S. healthcare market. These include an expansion of existing government coverage and new regulations that would require insurers to cover a wider range of consumers. Hospitals and doctors would also see their revenues grow with any of the three exchanges but at a slower rate, the report said.

   The proposal’s advocates have argued that a government-sponsored insurance plan would offer the 46 million uninsured Americans an affordable alternative to costly private insurance, adding that It would provide a strong incentive for private plans to strealine, innovate and compete.

   Thank You !