In an effort to keep everyone up to date on what is happening with health care reform, I’m passing along information released today by NAIFA (National Association of Insurance and Financial Advisors).
Early this morning, the House Ways & Means Committee approved H.R>3200, the “America’s Affordable Health Choices Act of 2009” by a 23 to 18 vote. There are two other House committees- Education & Labor and Energy & Commerce that are reviewing the measure. The edits of all 3 committees will be combined into one bill that will go to the House floor by the end of the month.
H.R.3200 has one major impact for consumers – it limits the use of flexible spending (FSA, health savings account (HSA) and health reimbursement account (HRA) funds that are used to buy medicine. Currently FSA, HSA, and HRA funds may be used for both prescription medications as well as over the counter medications. H.R. 3200 limits these funds for prescription medications only.
Here’s an overview of H.R. 3200 as approved by the Ways & Means Committee:
- Includes an employer mandate, with employers who do not offer and pay most of the premium for health insurance on their employees subject to an eight percent of payroll tax
- Includes an individual mandate, with fines for individuals who do not purchase health insurance
- Creates a national exchange (although it permits states to set up their own exchanges) through which both a public health insurance plan and an unlimited number of private insurance plans could be purchased—initially, only individuals without access to employer-provided health insurance and small businesses could purchase their insurance through an exchange.
- Creates a public plan that is not subject to all the same rules (e.g., state premium tax liability) as private plans
- Imposes insurance reforms, including:
- Prohibition against pre-existing conditions
- Prohibition against use of health status or history in setting premiums
- Prohibition against annual or lifetime benefit caps
- Community rating (only age, family size and geography would be permissible premium variables)
- Required guaranteed issue/renewability
- Offsets the $1+ trillion cost of the reform bill by Medicare program savings (including substantial cuts in Medicare Advantage), and a new surtax on high-income Americans (1 percent on family income of $350,000 to $500,000; 1.5 percent on family income of $500,000 to $1 million; and 5.4 percent on family income in excess of $1 million).
- Restricts use of FSA/HSA/HRA funds used to buy medicine to prescription drugs
Tags: Add new tag, Reform, Universal Care
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