Effect on business- Senate and House health bill comparison

Insuring Resources Comparison:

The House and Senate Democrats are currently negotiating a compromise between the two health care reform bills that have passed. The result will most likely be a hybrid of the two on many issues, especially those impacting small business employer-sponsored health coverage. It is instructive, however, to look at those differences while the negotiations take place.

Both bills expand Medicaid in most states, but not in Wisconsin as we have BadgerCare Plus and Core which already expand coverage to families and childless adults up to 200% of the federal poverty level. The Senate and House bills only expand coverage up to 133% and 150% respectively.

The Senate Bill includes:

REQUIREMENTS FOR EMPLOYERS: Not required to offer coverage, but companies with more than 50 employees would pay a fee of $750 per employee if the government ends up subsidizing employees' coverage.

BENEFITS PACKAGE: All plans sold to individuals and small businesses would have to cover basic benefits. The government would set four levels of coverage. The least generous would pay an estimated 60 percent of health care costs per year; the most generous would cover an estimated 90 percent.


The House bill includes:
REQUIREMENTS FOR EMPLOYERS: Employers must provide insurance to their employees or pay a penalty of 8 percent of payroll. Companies with payrolls under $500,000 annually are exempt – a change from the original $250,000 level to accommodate concerns of moderate Democrats – and the penalty is phased in for companies with payrolls between $500,000 and $750,000.

Small businesses – those with 10 or fewer workers – get tax credits to help them provide coverage.

SUBSIDIES: Individuals and families with annual income up to 400 percent of poverty level, or $88,000 for a family of four, would get sliding-scale subsidies to help them buy coverage. The subsidies would begin in 2013.

HOW YOU CHOOSE YOUR HEALTH INSURANCE: Beginning in 2013, through a new Health Insurance Exchange open to individuals and, initially, small employers. It could be expanded to large employers over time. States could opt to operate their own exchanges in place of the national exchange if they follow federal rules.

BENEFITS PACKAGE: A committee would recommend a so-called essential benefits package including preventive services. Out-of-pocket costs would be capped. The new benefit package would be the basic benefit package offered in the exchange.

Background material source: The Huffington Post