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New Health Care Law Overview

Health Care Reform: Client Impact

With the approval of the new health care bill, there has been a great deal of discussion, both positive and negative, about the proposed legislation. The Law Offices of Richard D. Seward would like to take a moment and attempt to summarize the content of the bill, and provide an easy understanding of the implications of the proposed legislation.

Proponents point out the following:

  • The Congressional Budget Office, a non-partisan body, estimates that the new legislation will cut the deficit by $143 billion over the next 10 years by cutting government overspending and reigning in waste, fraud and abuse.
  • Uninsured and self-employed will be able to purchase insurance though state-based exchanges with subsidies available to individuals and families whose income is between 133% and 400% of the poverty level.
  • Though the bill will cost taxpayers $100 billion each year, the cost savings from altering the health care system are estimated by the CBO to be more than twice the yearly cost.
  • Small businesses would receive a tax credit for up to 35% of the money they pay to purchase health insurance for their employees. By 2014, that percentage would increase to 50%.
  • Under the plan, 95% of Americans will be insured.
  • Insurance companies will no longer be able to deny coverage to individuals with pre-existing conditions.
  • Health insurers can no longer cap coverage for individuals. This should reduce medical bankruptcy.

Opponents point out the following:

  • Starting in 2014, everyone must purchase health insurance or face up to a $695 annual fine. There are some exceptions for low-income people.
  • Employers with more than 50 employees must provide health insurance or pay a fine of $2,000 per worker, excluding the first 30, each year if any worker receives federal subsidies to purchase health insurance.
  • Health care bill will cost the American taxpayers $100 billion each year.
  • Government regulation of the health care industry and insurance industry. That government regulation will likely make it more expensive for insurers and health care providers to operate. That added cost will likely be passed on to the consumer.
  • 0.9% increase in Medicare payroll taxes for Americans who earn more than $200,000 annually individually and $250,000 for couples. This amount will rise to 3.8% if reconciliation passes. It will also apply to investment income, estates, and trusts.
  • Americans will be forced to buy a health insurance plan that is all inclusive, including services that might not be needed. Single men with no children must buy pediatric services. Women who can't bear children must still buy coverage that includes maternity services.

Additional resources provided by the author

The Law Offices of Richard D. Seward invite you to contact our office with any questions about the how the changes in our health care system might affect you or visit our website at and go to the links for our blog for a more indepth discussion of the New Health Care law and other business related topics.

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