Health care bill

Juliana - posted on 09/25/2010 ( 5 moms have responded )

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My husband and I were talking last night about the health care bill that was passed. Can anyone explain it to me, please? I just dont understand it. Thanks.

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Isobel - posted on 01/02/2011

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high demand lowers prices not raises them...but yeah, there are a lot of problems with the bill, you guys'll be tweaking it for a long time.

[deleted account]

What Theresa said was correct, but there is a lot more to it.
Everyone will be required to purchase insurance, or pay a heavy fine if they do not purchase insurance from an approved agency. This will increase demand and thus drive up the cost of insurance, which is why the 85 cent rule was put in place. That could help, but many believe this will simply inflate the cost of medical care.

Another provision which has nothing to do with healthcare, but was tacked on at the end, is that businesses now have to file a 1099 for any and all vendors they purchase product, supplies, or services from for their business. This put many small businesses out of business.

"Pools" were created for people who currently have to buy their own private insurance.
The Small business pools allow small businesses to work together to buy group insurance, much like a large business would do, to get a better rate. The more people in the pool, the lower the rate because the higher the ratio of healthy people to risky people.
The High-Risk pools were created for people with pre-existing health problems who are self employed or employed by a company too small to offer group insurance plans. The idea is that they can work together like a business to lower the rate, but these plans will still be much more expensive than regular group plans.

The government will subsidize insurance premiums based on income up to 400% of the federal poverty line. Currently the federal poverty line is $22k for a family of 4, so a family of 4 making up to $88k annually should get some assistance, but it will be on a sliding scale based on income, so those making less will get more assistance than those making more.

[deleted account]

Oh I forgot...insurance companies have to put 85 cents of every dollar they make back into actual medical care. They can no longer us it for operating costs or administrative costs. Don't know when that goes into effect though.

[deleted account]

From what I understand (which probably isn't much more than you) under the new health care bill insurance companies:



1. can't deny coverage for you (or your children) even if you have a pre-existing condition

2. can't drop you (or your children's) coverage if you get sick

3. extend your children's coverage until 26 years old (I think they have to still be living at home or enrolled in college).



And I think the government is also giving seniors $250 vouchers (a year) towards their Medicare part D prescription plan.



Sorry Juliana...that's all I got! Hope it was helpful!

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