News » Stories That Matter » Healthcare Reform Act

Text Resize Bigger Smaller

Stories That Matter

Healthcare Reform Act (HCA)

By Leslie Clary

In March 2010, President Obama signed into law the Affordable Care Act (ACA), which put in place comprehensive health insurance reforms that will hold insurance companies more accountable, lower health care costs, guarantee more health care choices, and enhance the quality of health care for all Americans. 

Recently SCIL staff attended the Families USA conference in Washington DC. 

Conference speakers included Senator Tom Harkin and Senator Max Baccus as well as representatives from the Centers for Medicare and Medicaid, the Herndon Alliance, and even an appearance from President Barack Obama. 

For 2011 the focus will be implementation and dissemination of information. 

The ACA benefits discussed included the following:

  • Ends discriminatory pricing in the non-group market and the denial of coverage for pre-existing conditions.
  • Provides tax credits for lower and middle class families capping their insurance costs. Families below the median income will no longer have to spend more than 9.5% of income on insurance. And small businesses will receive tax credits to offset their insurance costs. 
  • Allows children to remain on their parent’s insurance until the age of 26.
  • Closes the “donut hole” in Medicare completely by 2020 with benefits starting in 2010.
  • Holds insurance companies accountable by requiring them to spend 80 to 85 percent of premium dollars on medical care and health care quality improvement, rather than on administrative costs.
  • Sets up a new competitive private health insurance market, through state exchanges, giving millions of Americans and small businesses access to affordable coverage, and the same choices as Congress.
  • A bill to repeal the ACA was recently passed within the House of Representatives and questions still remain within the public about the cost, effectiveness and constitutionality of the ACA.

As a point of comparison

Massachusetts passed health care reform within their state in 2006 and has been able to successfully run a program similar to the ACA including the personal responsibility mandate. 

A study conducted by the Urban Institute and released in December 2010 by the Massachusetts Division of Health Care Finance and Policy stated that as of June 2010, 98.1 percent of state residents had coverage. This compared to 97.3 percent having coverage in the state in 2009 and 83.3 percent having coverage nationwide.

Healthcare Reform Act Additional Resources: 

Congressional Budget Office: www.cbo.gov

Families USA: www.familiesusa.org

www.healthcare.gov

For more information visit Legislative LOOP or Web Links: Budget Cuts