House approves Health Insurance Reform- a timeline of how it will roll-out

Insuring Resources Commentary:
Health Insurance Reform is almost a reality. Sorry, we didn't get health CARE reform. The Senate must now pass by a simple majority the changes the house made to the original Senate bill. Then the President must sign it and that's it.

But what happens, when? See below courtesy of the Wall Street Journal.

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WSJ- 3/22/10

What happens in 2010

Subsidies begin for small businesses to provide coverage to employees.
Insurance companies barred from denying coverage to children with pre-existing illness.

Children permitted to stay on their parents' insurance policies until their 26th birthday.

What happens in 2011

Set up long-term care program under which people pay premiums into system for at least five years and become eligible for support payments if they need assistance in daily living.
Taxes and fees

Drug makers face annual fee of $2.5 billion (rises in subsequent years).

What Happens in 2013
Taxes and fees

New Medicare taxes on individuals earning more than $200,000 a year and couples filing jointly earning more than $250,000 a year.
Tax on wages rises to 2.35% from 1.45%.
New 3.8% tax on unearned income such as dividends and interest.
Excise tax of 2.9% imposed on sale of medical devices.
Cost control

Medicare pilot program begins to test bundled payments for care, in a bid to pay for quality rather than quantity of services.

What Happens in 2014


Create exchanges where people without employer coverage, as well as small businesses, can shop for health coverage. Insurance companies barred from denying coverage to anyone with pre-existing illness.
Requirement begins for most people to have health insurance. Subsidies begin for lower and middle-income people. People at 133% of federal poverty level pay maximum of 3% of income for coverage. People at 400% of poverty level pay up to 9.5% of income. (Poverty level currently is about $22,000 for a family of four.)
Medicaid, the federal-state program for the poor, expands to all Americans with income up to 133% of federal poverty level.
Subsidies for small businesses to provide coverage increase. Businesses with 10 or fewer employees and average annual wages of less than $25,000 receive tax credit of up to 50% of employer's contribution. Tax credits phase out for larger businesses.
Taxes and fees

Employers with more than 50 employees that don't provide affordable coverage must pay a fine if employees receive tax credits to buy insurance. Fine is up to $3,000 per employee, excluding first 30 employees.
Insurance industry must pay annual fee of $8 billion (rises in subsequent years).
Cost control

Independent Medicare board must begin to submit recommendations to curb Medicare spending, if costs are rising faster than inflation.

What Happens in 2016
Taxes and fees

Penalty for those who don't carry coverage rises to 2.5% of taxable income or $695, whichever is greater.
2017
Coverage

Businesses with more than 100 employees can buy coverage on insurance exchanges, if state permits it.


What Happens in 2018
Taxes and fees

Excise tax of 40% imposed on health plans valued at more than $10,200 for individual coverage and $27,500 for family coverage.