This last week Democrats of the House of Representatives revealed their bill, a combination of three separate plans, for our nation’s health care reform. The proposed bill not only incorporates a government-run insurance option, but also introduces new taxes on the rich. Specifically, a 5.4% tax would be imposed on individuals making more than $500,000, and couples making more than $1 million annually.

The new bill requires individuals to purchase their own health insurance, as well as the majority of businesses to offer coverage for their employees. In addition, the bill prohibits insurance companies to refuse coverage based upon pre-existing conditions. Although the current health insurance market is in dire need of this very amendment, there have been no concrete numbers proposed as to the actual cost of such a plan.

The House’s bill will need to be combined with the Senates proposed bill before a final decision is to be made by President Obama. There are some differences between the Senate and House bills. For example, although the Senate’s bill has a proposed government option, it does allow states to opt out of participation. Furthermore, the Senate is proposing that a tax be placed upon “Cadillac” insurance plans.

Although drastic steps have been taken, there is still the fear that a government option will insufficiently reimburse health care providers, and eventually result in a more costly health care system.