Saturday, July 21, 2012

Dynamic Strategy-Current Events-How Health Care Bill Became Law and How it Will Influence Americans


How Health Care Bill Became Law and How It Will Influence Americans

The health care reform has been one of the hottest news since Obama became President of the United States. It has been a long debate between Democrats and Republicans. The bill was passed by the Senate in 2009, the House in 2010, was signed into law by the President in 2010, and finally was uphold by Supreme Court in 2012. For Americans, this is the big event since everybody will have to have health insurance by 2014 or face a fine.

On Thursday morning, December 24, 2009, Senate passed a historic $871 billionhealthcare bill which was President Obama’s biggest victory since he had stepped into the White House. This measure is expected to extend health insurance to 94 percent of Americans, cut back health care costs, thus requires about $400 billion in new taxes and fees. The bill would levy annual fees on health insurance providers and health care industry. It would also increase the medical expenses deduction threshold and limit the deductibility of health insurance executives’ compensation. Employees would benefit from the bill by contributing only $2,500 maximum to health-related flexible spending arrangements and having various tax credits.

On Monday, March 22, 2010, Shailagh Murray, Lori Montgomery and Scott Wilson, the Washington Post Staff Writer wrote that President Obama will signhealth-care bill into law on Tuesday March 23, 2010. After Senate’s approval, the divided House passed the bill and the separate revisions, or reconciliation bill, in a marathon Sunday session. This is a historic victory for Democrats when the House passed the Senate bill by a 219-212 vote, and 220-211 vote for reconciliation bill. So, what will the health care bill affect people?

 The health care law gives multiple choices to the health insured and holds insurance companies accountable. Key features of the law include:

-Rights & Protections: many rights and consumer protections are available in the law to protect health care consumers.

- Insurance Choices: the law offers a variety of alternatives for those who have been rejected due to health condition or disability.


- Insurance Costs: there are changes in the law that provides the insured with new ways to hold insurance companies accountable and keep health insurance cost down.


- 65 or Older: the health care law provides eligible seniors more preventive services with no cost-sharing, and offers discounts on drugs.


- Employers: the health care law helps small business employers by offering tax credits and Early Retiree Reinsurance Program.


Not all Americans agree with the new law, thus it was brought to the highest court of the country for its constitutionality.


On June 28, 2012, SupremeCourt Upholds Obama's Individual Health Care Mandate. The ruling was a victory for President Obama and Congressional Democrats, affirming the central legislative achievement of Mr. Obama’s presidency. This was also a loss for 26 states that sued the individual mandate, which requires that individuals buy health insurance by 2014 or be fined. The law was authorized by Congress’s power to levy taxes.

As health care act will affect both employers and employees, practicing managers should take a proactive approach to the health care changes to avoid being surprised by new requirements and penalties.


References
SENATE PASSES HEALTH CARE SYSTEM REFORM LEGISLATION. (2010). Bruce R. Hopkins' Nonprofit Counsel, 27(2), 3.

Links:
1)      http://libproxy.uhcl.edu:2057/ehost/detail?vid=16&hid=24&sid=6b97df5d-1f2f-4851-b421-438364eaf233%40sessionmgr10&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=47908233

2)      http://www.washingtonpost.com/wp-dyn/content/article/2010/03/22/AR2010032201817.html


3 comments:

  1. Tuan,

    Interesting topic and you are correct about the health care bill being one of the hottest topics in politics. Everywhere I go somebody has an opinion on it. Although I don't agree with the newly mandated health insurance you bring some attention-grabbing points. I am extremely concern with this new bill because I feel it has been a violation of our constitutional rights. Government shouldn't be able to mandate our personal choices.I also have to wonder how the quality of care would change.

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  2. Tuan,

    This is a very interesting and touchy topic that people love to debate over. But I do have to agree with Sara, there are good points that are brought up in your post, but the aftershock of having to be forced to pay for health insurance doesn't seem to have a good forecast. One great point Sara mentioned was how the quality of health care would change? Are the ones that have been paying for health care going to get the same attention and care as of the person that has not been paying? Though I think its a good idea for people to have health insurance I don't think they should have to be forced to pay for it even if it is better for the collective because it does impede on our rights. Which raises a good question of how much less of our "free" country will we have left in the coming years.

    Then if you think about it from the point of view of the millions of people already paying for insurance it may be nice not to have to contribute so much in our paychecks to help those that can't or don't want to. Either way there are some good reasons and some bad ones. So I guess we are going to have to see what happens in 2014.

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  3. Tuan,

    This has definitely been the most debated topic over the last year. Sara brought up some interesting points. The new healthcare bill arises many new questions such as the quality of healthcare and our constitutional rights. This new law will surely bring many new changes to our national healthcare system in the years to come. As Jeanette mentioned, we will have to wait and see what happens in 2014 when the law goes into effect.

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