Healthcare Reform Steamroller Advances

The revised House bill also includes a tax on self-insured health plans to fund the proposed healthcare reform, according to Anne Hance, a partner in McDermott Will & Emery’s Washington, D.C. office.

The Senate HELP Committee passed on July 15 The Affordable Health Choices Act, a bill that the Committee says is designed to reduce health costs, protect individuals’ choice in doctors and plans, and assure quality and affordable healthcare for Americans. The Senate bill also includes a public plan option as well as measures to combat fraud and waste. In introducing the legislation, members of the committee also touted these aspects of the bill: no American can be denied health coverage because of a preexisting medical condition, or have that coverage fail to help them when they need it most; no American will ever again be subject to annual or lifetime limits on their coverage, or see it terminated arbitrarily to avoid paying claims. The Senate bill requires those businesses which do not provide coverage for their workers to contribute to the cost of providing publicly sponsored coverage for those workers. The bill includes an exception for small businesses. The bill states that small businesses with 50 or fewer full-time workers could receive tax credits for subsidizing insurance coverage. Reuters reports that all companies with more than 25 workers would be required to pay at least 60% of their workers’ health insurance or face a $750 per full-time employee fee, with a reduced rate of $375 per part-time employee. The first 25 workers would be exempt, Reuters says.