Healthcare Reform Bill Details

Let us try to elaborate the healthcare reform bill details of the USA. The total amount that would be spent for this over the ten years is $940 billion. This would reduce the total deficit by $143 billion over the next ten years according to the updated CBO estimate. The deficit was estimated to be reduced by $130 billion over the first ten years. In the second ten years, the deficit is estimated to reduce by $1.2 trillion years.

This healthcare reform bill is expected to cover 32 million Americans, who are currently uninsured. The uninsured and self-employed would be able to purchase health insurance through state-based exchanges.  Subsidies are also available for the individuals and for their families with income between the 133- 400% of poverty level. In addition to that, there will be separate exchange for small businesses to purchase coverage from 2014. Funding will be available for states to establish exchanges for the year of enactment and up until January, 2015.

Only those individuals and families who make between 100 – 400%  of the Federal Poverty Level and want to purchase their own health insurance on an exchange are qualified for subsidies. However, they cannot be qualified for Medicare, Medicaid and cannot be covered by their employer. All qualified buyers will receive premium credits. Moreover, there is a cap for how much they have to pay to their premiums on a sliding scale. While reading this federal healthcare reform bill details, one should note that the Federal Poverty Level for a family with four members is $22,050.

Medicare Payroll tax on investment income will start from 2012. This Medicare Payroll Tax will be expanded so that it includes unearned income. There will be a 3.8% tax on investment income for the families that are making above $250,000 per annum. However, for individuals, this amount is $200,000.

Excise Tax will begin in 2018, and insurance companies will pay 40% excise plan on high-end insurance plans that are worth over $27,500 for families and $10,200 for individuals. These high-end plans are also called Cadillac. However, dental and vision plans are going to be excused and will not be counted in the total cost of a family’s plan. There will be a 10% tanning tax on indoor tanning services.

This healthcare reform bill will close the Medicare prescription drug donut hole by the year 2020. All the seniors who hit the donut hole by 2010 will get a $250 rebate each. All the seniors will receive a 50% discount on brand-name drugs starting from the year 2011. This healthcare reform bill details also include $500 billion in Medicare cuts over the next decade.

This bill expands Medicaid to include 133% of federal poverty level. For a family of four this is $29,327.  This health reform bill requires all the states to expand Medicaid so that it includes childless adults from 2014. However, this is not applicable to those who are illegal immigrants and living in the USA without the proper clearance.