Congress Completes Overhaul of Health Care Law
Passage of the Heatlth Care and Education Reconciliation Act of 2010 (H.R. 4872) (Reconciliation Act) by Congress, followed by it signing by President Obama on March 30, 2010, completes a massive overhaul of the nation's health insurance and delivery system. The Reconciliation Act amends the Patient Protection and Affordable Care Act of 2010 (P.L. 111-148), which President Obama signed into law on March 23. Together , the two new laws include more than 400 billion in revenue raisers and new taxes on employers and individuals.
The following is a brief listing of key provisions in the health care package taking effect in 2010:
- Small business tax credit;
- Temporary high risk pool for individuals who are uninsured because of a pre-existing condition;
- Temporary reinsurance program for early retirees;
- No discrimination against children with pre-existing conditions;
- No lifetime limits on coverage;
- Coverage for young persons until age 26 through parents' insurance; and
- A $250 rebate to Medicare beneficiaries who are affected by the medicare drug plan coverage gap (also known as the "donut hole").
On the revenue side, the health care package includes an additional Medicare tax on wages and self-employment income of higher income taxpayers, a new Medicare contribution tax on net investment income, and a delayed excise tax on high-dollar insurance plans, among its new taxes, fees, and penalties.
