Proposed Senate Finance Health Care Bill
October 5, 2009This last Wednesday marked a major turning point in our nation’s health care reform. The Chairman of the Senate Finance Committee, Max Baucus (D-Mont), finally unveiled the committee’s proposal for overhauling our nation’s health care. Although the proposal has drawn some criticism from Democrats since it omits a “public option,” many believe the proposal offers changes that will draw support from both parties.
The proposed bill, if initiated, is intended to provide health insurance coverage for 95% of Americans, and will not provide coverage for illegal immigrants. This being said, many are wondering how such a measure will be paid for.
Proposed Funding for Health Care Reform:
- Fines on individuals or families who do not purchase health insurance.
- Fees on insurance companies, drug makers, and medical device manufactures.
- Imposed taxes on insurance companies on particular plans with premiums that exceed $8,000 annually for an individual, and $21,000 for a family.
- Reduced funding for Medicare and Medicaid.
- $80 Billion from pharmaceutical companies over a ten year period.
A drastic change to the current health system in place is that insurance companies will no longer be able to deny coverage based on pre-existing conditions. Furthermore, as stated above, everyone will be required to acquire coverage on their own, or through their employer.
So if there isn’t a public option, what exactly is being proposed to increase competition among insurance companies? Currently, there would be a non-profit, member owned/run cooperative established to compete with insurance carriers.
Posted in :health insurance | 9 Comments. »
What good is imposing fines on individuals if they do not carry Insurance? The reason they dont have insurance is because they cant afford it!!!!So if they do not have the funds to purchase insurance-where does the government think they will get there money for the fines? And if they keep fining the individuals-they will never have money for insurance!!
Thanks for everything you are trying to do!!! BUT I think their should be a PUBLIC OPTION!!!… And who can afford $8000.00 a year for INDIVIDUAL INSURANCE!!!!…. Thanks for ALL your Hard work!!! BUT unless their is a PUBLIC OPTION their STILL will be NO COMPETION among INSURANCE Companies to lower their premiums and they still will control Doctors and Hospitals like any HMO policy holder can tell you!!!… for the average GUY!!!.. Have a GOOD Day!!!… Joe M.
Dianne-
I understand your frustration about the cost of health insurance. However, imposing fines on those who are uninsured hopefully will incentivize people to get health insurance, as well as drive down the overall cost of health care in general. Those who are uninsured and receive medical treatment only compensate 30% of their total medical bills. Hence, these financial shortcomings inadequately reimburse health care providers. With the government unable to subsidize this cost, it then trickles down to those who are insured by way of their monthly premium. It has been estimated that 8% of a family’s health insurance premium is directly correlated to paying for the uninsured. If everyone obtained health insurance coverage hopefully overtime the cost of health insurance would be driven down.
Joseph-
I fear that there may be a misunderstanding in regards to the $8,000 a year for individual health insurance. Those plans are “Cadillac” plans, and do not reflect the average cost of a comprehensive health insurance policy. So why are these policies being taxed? Too often these “Cadillac” plans result in the abuse of the health care services because individuals don’t care that someone else’s money is being spent after the deductible has been satisfied.
Also the proposed Medicare cuts are to the Medicare replacement policies. These are the private policies that pay doctors exactly the same as Medicare, yet patients pay to them instead of Medicare. The insurance companies get an additional rebate from the government for offering these policies. So basically they get paid twice. Yet this is being presented to seniors as a cut to their benefits.
I’m currently on a COBRA plan from my former employer. I’m paying out of pocket a $758.00 monthly premium plus a $3500.00 family deductible, plus out-of-pocket that my insurance does not cover.
I’m worried that when my COBRA expires (a) I won’t be able to get insurance because of pre-existing issues(not life threatening..Fabromailga my wife and a acid reflex drug for me) on my wife and myself or (b) if I do get insurance the premium will be so high, I won’t be able to afford it. I’m willing to take a high deductible if that situation arises.
Any comments or help would be appreciated.
Bill,
You’re right that pre-existing conditions can influence your ability to become qualified for an individual health insurance plan. However, it is not always a the condition, but rather the treatment (medications etc) that will truly determine your chances for approval. In addition, the state where you reside can influence the options that are available to you. Some states have guaranteed issued products, as well as state high-risk pools. To best answer your questions I would recommend speaking with one of our licensed Advisors here at MyInsuranceExpert.com.
i am currently on workers comp weekly payments because of injury on job. the workers comp is wanting to settle (for low amount). the company i am working for is still paying for my health insurance. my question is if i dont settle will the company have to keep paying my insurance premiums as long as i am recieving weekley checks and if i do settle will i be able to get on cobra plan or will i even be able to get any type of ins plan. i live in north carolina and the company i work for is in georgia.
Because of the complexity of the situation I would have to advise you to speak directly with your HR department. I apologize that I cannot provide you with a more specific answer, but the variables involved would require the attention of someone directly involved with your case.