Nashville Tech Story (3/24/10)
By now we have all heard about the Health Insurance Reform package passed late Sunday evening. We have been looking for a good summary. Deloitte sent us the following link to help us keep up with the progress of the bill as the Senate reconciles its version to the House Bill that was passed. We didn’t think you wanted to read all 2,400 pages of the bill. The market responded positively yesterday, but there are many tanning salons looking for new revenue streams this morning.
The cost of the House reconciliation bill is $940 billion over 10 years. Major expenses are:
- $434 billion for expansion of Medicaid and Children’s Health Insurance Plans enrollment
- $466 billion for subsidies to fund insurance for individuals and families up to 400 percent of the federal poverty level
- $40 billion for small employer tax credits
Among the proposed sources of funding from the Congressional Budget Office’s (CBO) preliminary analysis combining HR3590 and HR4872 are:
- $60 billion penalties paid by individuals and employers that do not buy insurance*
- $196 billion in reduced Medicare scheduled payments
- $36 billion in cuts to Medicare and Medicaid Disproportionate Share (DSH) payments
- $70 billion from premiums for long-term care insurance (CLASS Act)
- $132 billion in cuts to Medicare Advantage Plans
- $32 billion from taxes on Cadillac health plans*
- $103 billion Medicare payroll tax increases*
- $57 billion excise taxes on insurance companies (2014-2018), plus $14.3 billion per year plus adjustment thereafter*
- $31 billion excise taxes on brand name pharmaceutical companies (2010-2019), plus $2.8 billion per year thereafter*
- 2.3 percent sales tax on medical devices*
- $58 billion Pell Grant privatization (unrelated to health reform)
Source: CBO Preliminary Analysis, March 20, 2010
