Home > Health Care Policy > Breaking News: If Healthcare Reform Repealed, Public Law 111-152 will Uphold It!

Breaking News: If Healthcare Reform Repealed, Public Law 111-152 will Uphold It!

If the healthcare reform law (P.L. 111-148 – Affordable Care Act) is overturned and repealed, P.L. 111-152 (The Health Care and Education Reconciliation Act of 2010) will uphold it. This particular piece of legislation is part healthcare and part education reform law and it is very heavy on financing. The legislation was passed and signed into law quietly by President Obama on March 30, 2010. Its sister law (P.L. 111-148 – Affordable Care Act) was signed into law by President Obama  on March 23, 2010. The Congressional Budget Office, U.S. Department of Health and Human Services, and U.S. Department of the Treasury have said the legislation will see a reduction in the federal deficit by $143 billion over 10 years (2010-2020). This figure comprises $124 billion in net reductions deriving from health care and revenue provisions and $19 billion from the education provisions. The provisions consist of new taxes, fees on health-related industries (medical device, IT, insurance) and cuts in government spending on healthcare programs such as Medicare, Medicaid, and Medicare Advantage.

Here is a summary of the provisions that are in P.L. 111-152.

Healthcare Provisions……………….

All U.S. citizens must purchase health insurance by 2014 or face a fine of $695 (reduced from $750) or imprisonment.

Senator Ben Nelson’s (D-Nebraska) special Cornhusker Kickback deal eliminated.

Closes Medicare Part D “donut hole” by 2020 and gives seniors a rebate of $250.

Tax on cadillac health-plans delayed until 2018.

Physicians who see Medicare payments required to be reimbursed at the full rate.

Medicare tax on unearned income of families that earn $250,000 a year.

Households below 150% of the federal poverty level would pay 2% to 4% of their income on premiums. Health plans would cover 94% of the cost of benefits. Households with incomes from 150% to 400% of the federal poverty level ($88,200 for a family of four) would pay on a sliding scale from 4% to 9.8% of their income on premiums, rest will be covered by government advanceable, refundable tax credit. Health plans would cover 70% of the cost of the benefits.

In 2014, if a company with more than 50 workers does not offer coverage, they will be obligated to pay $2,000 for each full time worker in the company, exempting the money due for the first 30 employees. For example, an employer with 53 workers will pay the penalty for 23 workers, or $46,000.

Would increase Medicaid payment rates to primary care doctors to match Medicare payment rates, which are higher, in 2013 and 2014.

The federal government would pay all of the costs of expanding Medicaid under the reform until 2016, 95% in 2017, 94% in 2018, 93% in 2019, and 90% thereafter. Some states that already insure childless adults under Medicaid would receive more federal money for covering that group through 2018.

The Medicare patients will receive 50% discount on brand-name drugs would begin in 2011. By 2020, the government would pay to provide up to 75% discount on brand-name and generic drugs, eventually closing the coverage gap.

Would extend the ban on lifetime limits and rescission of coverage to all existing health plans within six months after signing into Law.

Education Provisions……..

Ends the process of the federal government giving subsidies to private banks to give out federally insured loans. Instead loans will be administered directly by the Department of Education.

Increases the Pell Grant scholarship award.

For new borrowers of loans starting in 2014, those who qualify will be able to cap the amount they must spend on loan repayment each month to 10% of their discretionary income (current cap is 15%.).

After 2014, loans will be eligible to be forgiven to those who make timely payments after 20 years (the current time-frame being 25 years).

Will make it easier for parents to take out federal PLUS loans for students.

Several billion will be used to fund historically poor and minority schools, as well as increasing community college funding.

You can read the bill in its entirety here: http://www.gpo.gov/fdsys/pkg/PLAW-111publ152/html/PLAW-111publ152.htm

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  1. January 19, 2012 at 6:32 pm

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