A Brief Summary Of Obama Care.
President Obama’s health care legislation is designed to reform the entire U.S. System of health care and to furnish health care that is of good quality and affordable to all U.S. Citizens. This legislation became law on 3/23/10 and it withstood a ruling by the supreme court on 6/28/12. This legislation has many preventive care components and protects citizens from insurance companies who will not have the right to deny coverage to anyone who has preexisting conditions. Furthermore, their insurance can not be terminated when they become ill.
Patient Protection and Affordable Care Act
Obama care changes the way insurance is bought. It requires all citizens to buy private health insurance or pay a tax of between one and two and a half percent of their income. People who do not have the funds to pay will either get Medicaid or Medicare, others will be able to get assistance, credits, or tax breaks.
Obama Care Health Insurance Exchanges
Obama care strives to make health insurance accessible and available to the vast majority of currently uninsured individuals. It sets up health insurance exchanges that are run by states or the federal government. These are internet based exchanges where people can shop for quality health care that is affordable. In addition, small businesses will also be able to use these exchanges to provide health insurance for their employees. Health insurance coverage from exchanges will commence on 1/1/2014.
Health care reform in the United States
No matter what your costs are, Obama Care is designed to improve the entire industry of health care. It is estimated that there will be 30,000,000 people who currently have no health insurance that will receive it under this new plan. Other provisions of the plan include an emphasis on preventive care, expanded health coverage for the poor, improved women’s health coverage and services and superior care for the elderly.
In addition Obama care also increases Medicaid coverage to furnish health insurance to 17,000,000 uninsured people who currently make too much to qualify for Medicaid, but not enough to pay for health insurance. Medicare is also receiving an overhaul, with many provisions designed to reduce fraud, cut costs and improve patient care.
According to the Congressional Budget Office, Obama Care will cost $1.1 trillion in the next period of ten years. It is estimated that Obama Care will actually save the government money by reducing the rate of growth of health care costs. The costs for specific individuals will vary, if you make in excess of 4 times the poverty rate, you will probably pay roughly the same as you do currently. Those that make less than this will likely have their costs reduced.
How Is Obama Care Paid For?
To summarize, Obama Care will be funded through government funding, taxes, and budget cuts. This will include a 0.9 percent Medicare tax and a tax on unearned income in excess of $200,000. There will be a drive for efficiency to reduce wasted spending, a tax on companies with 50 or more employees who do not provide insurance coverage, and a tax on insurance companies. Of course this is just a brief summary, the full legislation is quite complex, as one might imagine.
Taxes to pay for Obama Care are progressive with those making more money paying more taxes and more for their health insurance. The vast majority of citizens will benefit from Obama Care. It is estimated that seventy percent of the population will pay less for their health care and receive better health insurance coverage. They will reap the benefits of being able to choose their health insurance coverage form an insurance exchange, or they may qualify for Medicaid or Medicare.
Obama Care And Small Businesses
Obama Care provides assistance to small business owners with less than 25 employees. It helps them to provide health insurance coverage for their employees, through tax credits. Businesses with more than 50 employees must pay for a portion of their employees health insurance or pay penalty. There is an argument that this will impede growth by adding to the cost of small businesses. However, there are many arguments in support of Obama Care stating that it will improve the health of employees and thus save small businesses money in the long run.
Obama Care Reform Summary
Obama Care completely overhauls the entire health care system. It changes how health insurance companies operate and who they can cover. It institutes many reforms in health care to combat fraud. It also expands health insurance coverage for a large portion of the population who are currently uncovered. It is a very complex bill that encompasses many different aspects of an enormous health care system. It will take many years to find out how this will all play out. No doubt, adjustments will need to be made along the way. We have only touched upon some of the aspects of Obama Care. It is a very complex piece of legislation, so we can just touch upon the highlights of the bill.