S. 1796 Arrives: Baucus Health Bill Text Goes Online

Unlike some of the other major health reform bills, S. 1796 would not start a major new long term care insurance program. Instead, the bill includes a provision, S. 1642, expressing the sense of the Senate that
Congress ought to “address long-term services and supports in a comprehensive way that guarantees elderly and disabled individuals the care they need; and long term services and supports should be made available in the community in addition to in institutions.”

Similarly, instead of including specific provisions concerning changes in medical malpractice rules, S. 1796 includes a provision, Section 3701, that would express the sense of the Senate that Congress ought to consider developing a new system for resolving medical malpractice claims.

The revenue title, which starts on page 1420 of the Web version of the bill text, begins with sections concerning a proposed 40% excise tax on “high cost employer-sponsored health coverage.” The tax would take effect in 2013, for health benefits packages with a value of $8,000 for individuals and $21,000 for families.

The affected “applicable employer-sponsored coverage” would include any group health coverage that would be excludable under Section 106 of the Internal Revenue Code — except that the term would exclude disability coverage, long term care coverage, and any coverage that cannot be deducted from gross income.

The cost of a flexible spending account would include FSA contributions and excess contributions, and the cost of health savings accounts would include any employer HSA contributions.

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