March 22, 2010--By a narrow 219 - 212 vote, the House of Representatives voted late last night to send H.R. 3590, "The Patient Protection and Affordable Care Act," to the President for his signature, handing the President a significant political victory.
What happens next:
• President Barack Obama is expected to sign this bill into law this week
• The Senate must now consider negotiated changes to the package through the Reconciliation Act of 2010 (H.R. 4872), which also passed the House last night
• Department of Health and Human Services must draft implementing regulations
• Several states have already publically discussed legal challenges to H.R. 3590
What this means for your business:
Many provisions will not be implemented until at least 2014; however, a number of changes can be expected this year, including:
• Insurance companies will be forbidden from denying coverage to sick children
• Adult children can stay on their parents' policies until they are 26
• Small businesses will receive tax credits to help them buy insurance for their employees
• All new policies will be required to cover preventive care, including annual physical exams
• The practice of dropping insured people when they get sick will be banned
• A high-risk pool will be created to subsidize adults with pre-existing conditions
• For seniors, some medicines will become cheaper and the donut hole will be reduced somewhat
We'll continue to analyze the full impact of this legislation and provide more details as they become available.
The industry's position:
Last Friday, we urged members to ask their Representatives to vote against this legislation for the following reasons:
• Does not allow small business pooling across state lines
• Adds a new $2,000 per employee penalty on many employers
• Raises costs of drugs and many medical services
• Does not provide meaningful tort reform
• Adds new costs and regulations on businesses
Even though the bill has passed, AH&LA will continue working with Congress to ensure the best interest of our industry is protected. Please direct any questions on this matter to AH&LA Vice President of Governmental Affairs Kevin Maher at kmaher@ahla.com.
