Health Care Reform Update

House Republicans held a vote last week to repeal the landmark healthcare reform legislation passed last year.  Senate Majority leader Harry Reid (D-NV) has no plans to allow a vote in the Senate so many felt the legislation was purely political posturing.  Only time will tell.  In the meantime, the House Republicans plan to hold hearings on the negative impacts of the health reform law, while Senate Democrats staged their own hearing in an attempt to defend it.

 Many of you may not be aware of the plans the House Republicans had voiced in the last session, as they were not allowed to bring them to a vote in the Democrat controlled house.  The Republican House indicates they will be more open than their counterparts last year, so there should be some lively debate to come.  There does appear to be consensus on repealing the 1099 provision that requires businesses to issue 1099s on any vendor they pay $600 or more in a year.  Republicans also oppose new limits on flexible spending arrangements, the new deductible tax on the sale of medical devices by the manufacturer.

 Hearings were also held challenging the argument touted by Democrats that the healthcare reform bill will reduce the cost of health insurance. Medicare Actuary Richard Foster was questioned about the true costs of implementing the healthcare reform legislated Medicare reimbursement cuts.  Foster said Medicare savings can’t be used both to strengthen Medicare’s solvency and pay for expanded coverage under the health law, even though current accounting rules make that appear to be the case. He estimated that 7.4 million beneficiaries in Medicare Advantage plans would be unable to continue their current coverage, which Republicans say is evidence that refutes President Obama’s statement that under the health law Americans can keep they coverage they now have.

The hearings will likely serve as the foundation for a Republican version of healthcare reform.

Advertisement

Explore posts in the same categories: Uncategorized