Obama finalizes reconciliation bill

President Obama signed the Health Care and Education Reconciliation Act Tuesday, marking the final changes to newly passed health care reform legislation and adding provisions to improve the national student loan system.

The act reflects agreements between the House and Senate that will expand health insurance subsidies for lower- and middle- income families; give tax credits to employers to help offset the costs of providing health insurance; prohibit health insurance companies from denying coverage to people with preexisting conditions or canceling coverage for people who become ill; and offers $250 to help seniors who fall in the Medicare “doughnut hole” pay for prescriptions.

In addition to health reform changes, the bill will also restructure the national college student loan system — reinvesting funds previously allocated as federal subsidies to commercial banks that provided student loans.

The White House projects that ending these wasteful subsidies will free up nearly $68 billion over the next 11 years. The changes will provide more funding for Pell Grants. Other provisions aim to improving community colleges and help student borrowers manage their debt by capping loan repayments at 10% of their discretionary income.

After the reconciliation changes, the health care reform bill is $65 billion more expensive than it was last week, with a total price tag of $940 billion over the next 10 years, according to wire reports.

Karen Ignagni, President and CEO of America’s Health Insurance Plans called the act a “significant step forward for the country,” in a press release, but noted that the changes will only be sustainable if they are paired with cost-control efforts. “Ultimately, the success of health care reform will depend on whether or not soaring costs are brought under control and coverage becomes more affordable for working families and small businesses.”

Although the debate in Congress has ended, many are voicing opposition to the new law. During the past week, 14 state attorney generals have filed suit to overturn the bill in a federal court, questioning the constitutionality of mandating individual citizens to purchase health insurance from a third party.

Two small physician groups, the conservative Association of American Physicians and Surgeons and the nonprofit NJ Physician Group, have filed similar suits stating that they believe the new bill will reduce the quality of care patients receive and increase health care costs.

Follow HemOncToday.com on Twitter.