President Obama Signs Historic Health Care Reform Bill
March 22, 2010
U.S. President Barack Obama is expected to sign a historic healthcare reform bill into law on Monday, March 29, 2010, that will provide health insurance for an estimated 32 million uninsured Americans and offers several protections for pre-existing conditions.
The bill, initially approved by the U.S. House of Representatives was passed by the U.S. Senate on Wednesday, March 17, 2010, and then sent back to the House, which finalized the legislation with a vote of 220 to 207.
The Congressional Budget Office estimates the legislation will cost $940 billion in the first 10 years while simultaneously reducing the deficit by $143 billion. Health care reform measures are expected to be paid for in the next decade through about $455 billion in payment decreases to hospitals, insurance companies and other health care providers under Medicare and other government health programs, according to the Associated Press. The AP reported that an additional $210 billion will be raised by increasing the Medicare payroll tax; $107 billion from insurance companies, drug makers and medical device manufacturers; $32 billion from an excise tax on high-value insurance plans; and $2.7 billion from a tax on indoor tanning services.
Although much of the legislation takes effect starting in 2014, including a 50 percent small business tax credit, businesses with fewer than 50 employees that provide health insurance for their employees will be able to take a 35 percent credit within six months. The law will also provide a $250 rebate to Medicare beneficiaries who hit the “donut hole” this year; eliminates copayments for preventive services beginning in 2011; within six months will ban health plans from dropping people who get sick while covered; and prevent the companies from denying coverage to children with pre-existing conditions.
To view the document approved by the House on Thursday, March 25, 2010, go to http://frwebgate.access.gpo.gov/cgibin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3200rh.txt.pdf .
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