Healthcare Reform Update - 31March2010

American Benefits Council Pressures Congress to Repeal Part of Health Reform Law

• The American Benefits Council, which represents 300 companies, is asking Congress and Obama to consider repealing a provision of the healthcare reform law.
• The provision under scrutiny reduces the tax deductions for companies that provide prescription drug coverage for their retired employees.
• Since 2006, companies have received a 28-percent federal subsidy (up to $1,330 per retiree) on a tax-free basis to help pay for prescription drug coverage for retirees.
• Until now, companies could deduct the subsidy from their taxes, essentially receiving a second benefit from the money. (If a company pays $100 in coverage, they would receive a $28 subsidy, yet still deduct $100 in expenses from income for tax purposes.)
• Now, companies will no longer be able to deduct the coverage amount, but it remains tax-free.
• This provision doesn’t go into effect until 2013, but companies are bracing for the change now.
• AT&T announced last week that it was taking a $1 billion charge because of the provision;
• Deere & Company announced a $150 million charge.
• Boeing expects a $150 million charge.
• Many companies say they are taking these charges before the current quarter ends to comply with accounting rules. However, some critics believe the companies’ quick response to the provision is aimed at pressing the administration to repeal it.Find all the info that you need about " good research essay topics orderessay " at https://www.orderessay.net/essay-topics.html
• Read more: http://www.nytimes.com/2010/03/30/business/30subsidy.html; http://online.wsj.com/article/SB10001424052702304252704575155613728130190.html?mod=WSJ_latestheadlines

Healthcare Reform Update - 30March2010

President Obama Signs Reconciliation Bill Into Law

• At 11:30 this morning, President Obama signed into law the Healthcare and Education Reconciliation Act of 2010.
• The Reconciliation Act will merge with the legislation Obama signed last week to create one final law.
• The Reconciliation Act changes many of the finer details of the existing health reform law.
• For example, it increases the penalties for employers and individuals who do not purchase insurance, as well as increases the federal subsidies provided to help people comply.
• The law also includes a large provision aimed at overhauling the student loan system, through which private lenders will be cut out from originating federal student loans. This provision is estimated to save the federal government as much as $7 billion per year.

Healthcare Reform Update - 26March2010

Congress approves reconciliation healthcare bill
 

• The House approved it late Thursday 220-207 ending a historic week for healthcare reform.
• The bill now goes to President Obama for his signature. He is expected to sign it into law early next week.
• Obama welcomed debate from Republicans who vowed to campaign for repeal in the fall election season.

Healthcare Reform Update - 25March2010

Reconciliation bill returns to House

• Working until 3 a.m. this morning to review the Reconciliation Bill and a stack of GOP amendments, the Senate parliamentarian found two minor provisions that violate Congress’ budget rules.
• This sends the Reconciliation bill back to the House for another vote.
• The problematic provisions deal with protecting students from future cuts in their grants if Congress does not provide enough money for them. They violate budget rules because they do not produce savings.
• The development came as the Senate completed nine hours of uninterrupted voting on 29 GOP amendments to the legislation. Majority Democrats defeated every amendment.
• The Republican amendments were meant to force Democrats to cast difficult political votes before November's congressional elections.
• Democrats also deflected GOP amendments:
• Rolling back the health law's Medicare cuts;
• Killing extra Medicaid funds for Tennessee and other state-specific spending;
• Barring tax increases for families earning under $250,000; and
• Requiring the president and other administration officials to purchase health care from exchanges the statute creates.

Healthcare Reform Update - 23March2010

Obama Signs Healthcare Reform Bill into Law; Senate Begins Consideration of Reconciliation Bill

• At 11:15 a.m. today, President Obama signed into law H.R. 3950, the approved by the Senate on Dec. 24, 2009 and by the House on Sunday evening. healthcare reform bill
• The Senate will convene today at 2:15 p.m. to begin consideration of the reconciliation bill, H.R. 4872.
• Obama will now take his health reform campaign to the road to inform Americans of how the legislation will benefit them. He plans to travel around the country in the coming weeks, starting Thursday in Iowa.

Healthcare Reform Update #2 - 22March2010

Legal and Constitutional Challenges Loom on Healthcare Bill

• Republican attorneys general in at least 12 states announced today that lawsuits will be filed to stop the federal government from overstepping its constitutional powers.
• States also oppose the expansion of Medicaid that they say infringes on their ability to provide other services.
• Attorneys general in Alabama, Florida, Michigan, Nebraska, North Dakota, Pennsylvania, South Carolina, South Dakota, Texas, Utah and Washington plan to band together in a collective lawsuit.
• Virginia Attorney General Kenneth Cuccinelli also announced plans to file a lawsuit in federal court.
• At least 36 state legislatures are weighing legislation to limit, alter or oppose the federal healthcare reform, and 27 of those are considering amending their state constitutions by ballot.

Obama Will Sign Senate Bill Tuesday

• It was announced late today that President Obama will sign into law the Senate legislation on Tuesday.
• Shortly after the event, the Senate will begin considering the reconciliation bill, which it hopes to approve before Congress’ spring break beginning March 26.

The personal impact of the healthcare bill

• The Washington Post has created tool to help you assess any personal impact with the changes.
• Type in a few pieces of information and it tells you if there is any change to your current coverage, etc. http://www.washingtonpost.com/wp-srv/special/politics/what-health-bill-means-for-you/?hpid=topnews
• Read about what Medicare tax hikes are anticipated: http://money.cnn.com/2010/03/22/news/economy/medicare_tax_increase/

Healthcare Reform Update - 22March2010

Sunday, March 21 – House Approves Senate and Reconciliation Bills

• The House of Representatives met from 1 p.m. through midnight to consider final health reform legislation.
• In an effort to secure last-minute votes in favor, President Obama announced he would issue an executive order after passage attesting that the bill is consistent with long-standing restrictions on the use of federal funds for abortions.
• After hours of debate and procedural votes, the House took two main votes on the health legislation:

1. The House voted on the bill passed by the Senate on Dec. 24, 2009. Members approved this legislation 219 to 212. The bill will now go to Obama to be signed into law.
2. The House voted on the passage of the reconciliation bill that applies ‘fixes’ to the Senate bill. This legislation passed 220 to 211 and now goes to the Senate for consideration this week.

Next Steps:

• Obama is expected to sign the Senate bill into law no later than Tuesday. According to constitutional law, he must sign it before the Senate can take up the reconciliation bill.
• The Senate bill will remain law regardless of what happens to the reconciliation bill.
• The reconciliation bill will be considered in the Senate beginning on or after the day that Obama signs the Senate bill into law.
• Although Senate leaders have promised not to change the legislation, there are a number of anticipated holdups in the Senate that could drag out the process:
• All provisions must have a direct budgetary impact or can be removed by any Senator.
• The 20-hour limit on debate doesn’t apply to amendments and Republicans have promised a blizzard of them to slow down the process.
• The legislation may be subject to committee markups. This would require individual committees to amend and approve the package before a vote in the full Senate could occur.
• If the Senate modifies the bill, it will have to go back to the House for another vote.

The following provisions have an impact on Benefitfocus and/or our clients and go into effect within the first year after enactment of the Senate bill:

• Creates a temporary reinsurance pool for eligible individuals to provide access to coverage that does not impose any coverage exclusions for pre-existing health conditions. (This provision ends when the Exchanges are operational.)
• Initiates the first phase of the small business tax credit for qualified small employers for contributions to purchase health insurance for employees. The credit is up to 35 percent of the employer’s contribution to their employees’ health coverage. There is also up to a 25 percent credit for small nonprofit organizations.
• Bars health insurance companies from imposing pre-existing condition exclusions on children’s coverage.
• Prohibits insurance companies from rescinding existing health insurance policies except in cases of fraud. (Effective for plan years beginning on or after six months following enactment.)
• Prohibits lifetime limits on benefits in all group health plans and in the individual market and restricts the use of annual limits. (Effective for plan years beginning on or after six months following enactment.)
• All group health plans and plans in the individual market must provide first-dollar coverage for preventive services. (Effective for plan years beginning on or after the date that is six months after enactment.)
• Extends dependent coverage until the child turns 26 years of age. (Effective for plan years beginning on or after six months following enactment.)
• Creates a new temporary reinsurance program to help companies that provide early retiree health benefits for those ages 55-64 offset the expensive cost of that coverage.
• Requires that any group health plan or plan in the individual market implement an effective appeals process for coverage determinations and claims. (Effective for plan years beginning six months after enactment.)
• Requires the Secretary of Health and Human Services to award grants to states to establish health insurance consumer assistance or ombudsman programs to receive and respond to inquiries and complaints concerning health insurance coverage.
• Requires the Secretary of HHS to establish an Internet Web site through which residents of any State may identify affordable health insurance coverage options in that state. The Web site will also include information for small businesses about available coverage options, reinsurance for early retirees, small business tax credits and other information of interest to small businesses. So-called “mini-med” or limited-benefit plans will be precluded from listing their policies on this Web site.
• Requires enhanced screening procedures for healthcare providers to eliminate fraud and waste in the healthcare system.
• Requires that non-profit BCBS organizations have a medical loss ratio of 85 percent or higher in order to take advantage of special tax benefits, including the deduction for 25 percent of claims and expenses and the 100 percent deduction for unearned premium reserves.

Healthcare Reform Update #2 - 21March2010

History was made tonight as the U.S. House voted to pass the bill that the Senate passed on December 24, 2009. The vote was 219-212.

Immediately following this vote the president will address the nation from the East Room of The White House, where he is expected to sign the bill on the spot.

Next steps include:

• The House will now move on to consideration of the reconciliation bill.
• The first vote will be on whether or not to recommit (amend) the reconciliation bill. It is expected to fail.
• If the motion to recommit fails, the second vote will be on passage of the reconciliation bill.
• Assuming the reconciliation bill is approved, it will be sent to the Senate for consideration beginning Monday, March 22.

Healthcare Reform Update – 21March2010

Agreement with anti-abortion lawmakers appears to give Democrats the votes needed to pass the Senate bill