Health Care - What Will The New Bill Mean To You?

The Healthcare bill passed by the US Senate on Christmas Eve will not be finalized until the modified plan is passed in the US House again. While most expect there will be some minor changes there are some basic elements that should stay firm.

Here are some of the key questions and answers if it become law:

For consumers:

Q: Would the law force me to buy health insurance?

A: Yes, for most people. Of course, if you already have insurance from your job or are on Medicare, that won’t be a problem for you. Others might have to turn to newly created “exchanges” to buy coverage.

Q: What if I refuse?

A: You’d face a fine. It would start at $95 a year in 2014 and rise to $750 a year by 2016, or as much as 2% of your income, capped at the value of a basic insurance plan.

Q: What if I can’t afford coverage?

A: You’re likely to qualify for subsidies. The new consumer insurance subsidies would mean that a family of four earning about $22,000 a year would pay no more than 2% of its income toward insurance premiums. That assistance would stretch on a sliding scale up to a family of four earning about $88,000 a year and cap its premiums at 9.8% of the family’s income. Medicaid would be available to a family of four earning up to about $29,000.

For employers:

Q: Under the bill, do I have to give my employees coverage?

A: Technically, there’s no requirement, but if you have more than 50 employees and don’t offer coverage, you’re likely to face penalties. Any employer that doesn’t offer affordable coverage and has an employee who gets a tax credit would face a fine of $750 per worker.

Q: What if I have fewer than 50 employees?

A: The penalties don’t apply to you.

Q: With premiums rising so quickly, what’s to stop small employers from dropping coverage?

A: Small employers would get help to encourage them to maintain health coverage. Starting next year, firms with a small number of workers and average wages of up to $25,000 a year would be eligible for tax credits equal to 35% of the company’s cost of their insurance. That help would phase out gradually for firms with more employees and higher wages.