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Senate introduces health care bill that requires insurance coverage
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The Senate Finance Committee yesterday introduced a health care reform bill that calls for subsidies to help individuals and families purchase health insurance and may include a public health care option.
The Congressional Budget Office has estimated that the Patient Protection and Accordable Care Act (H.R. 3590) would cut the federal deficit by $127 billion over the next 10 years and up to $650 billion in the following decade, according to a statement by President Barack Obama.
“From day one, our goal has been to enact legislation that offers stability and security to those who have insurance and affordable coverage to those who don’t, and that lowers costs for families, businesses and governments across the country,” President Obama said. He praised the bill’s sponsors, Senate Minority Leader Harry Reid, D-Nev., Finance Committee Chairman Max Baucus, D-Mont., and Sen. Chris Dodd, D-Conn..
The CBO and Joint Committee on Taxation estimated that the bill would increase federal spending by $356 billion and boost revenues by $486 billion between 2010 and 2019, according to a letter from CBO Director Douglas W. Elmendorf to Sen. Reid.
The bill requires legal U.S. residents to purchase health insurance starting in 2014 and levies financial penalties on some residents who do not get insurance. Additionally, it calls for health care exchanges that would help subsidize the purchase of health insurance for individuals and families with income between 133% and 400% of the federal poverty level.
Additionally, the bill requires insurers to accept all applicants, regardless of pre-existing conditions, and prohibits insurers from basing insurance premiums on an applicant’s health status. The public plan would not require health care providers to participate in the plan in order to participate in Medicare. The bill also provides funding for the formation of health insurance cooperatives that would be offered through the exchange, Mr. Elmendorf told Sen. Reid.
The measure also funds preventive health services and prohibits lifetime or annual limits.
Sen. Baucus called the measure a fiscally balanced package that provides genuine health care reform.
“The Senate bill is fully paid for, won’t add a dime to the federal deficit and helps pay down the national debt,” he said in a press release. “It ensures choice for consumers and increases the competition in the market, bans insurance company practices that deny and drop coverage for sick Americans and creates new tax credits for working Americans and small businesses to make coverage more affordable.”
In a press release, Sen. Dodd said the bill is a fiscally prudent measure that embodies the traditional ideals of health care reform efforts.
“This bill meets the test of history, reflecting the ideals that drove Ted Kennedy to lead the fight for health care reform for a generation and inspired me to take up his torch this summer,” Sen. Dodd said. “It’s a comprehensive and thorough approach that comes in under budget and finally makes stable, affordable, quality care available to every American. It has been an honor to work with Leader Reid and Chairman Baucus in this process, and I look forward to an open and inclusive debate on the Senate floor.”
