Affordable Health Care Act

H.R.3962:  AFFORDABLE HEALTH CARE FOR AMERICA ACT

In a 220 – 215 vote on November 7, 2009 the House of Representatives passed sweeping and historic health care legislation.  H.R.3962, the Affordable Health Care for America Act, passed with 219 Democrats voting in favor and 39 voting against.  All House Republicans voted against the bill, with the exception of Representative Joe Cao (R-LA).

The bill now goes to the Senate.  The Senate may choose to vote on the bill as passed by the House, or may choose to vote on its own version of the bill.  If the Senate passes its own version, the two versions would need to be reconciled and voted on again.  

Be sure to let your senators know where you personally stand on this issue.

Select Provisions

This bill —

• Amends the Internal Revenue Code to (1) impose a surtax on the income of individuals who do not obtain health care coverage and on employers (other than exempt small business employers) who fail to satisfy health coverage participation requirements; (2) allow a new tax credit for small business employers who provide health care coverage to their employees; (3) increase the penalty for distributions from health savings accounts not used for qualified medical expenses; (4) modify rules and contribution limits for certain employee benefit plans; (5) impose a 5.4 percent surtax on individuals whose adjusted gross income exceeds $500,000 ($1 million for married couples filing joint returns); (6) impose a 2.5 percent excise tax on medical devices; and (7) extend the tax exemption for employer-provided health care benefits to eligible taxpayer beneficiaries.
• Establishes standards for qualified health benefits plans, including standards to prohibit any pre-existing condition exclusions; require guaranteed availability and renewability of health insurance coverage; limit premium variances, except for reasons of age, area, or family enrollment; and prohibit discrimination based on health status factors.
• Requires qualified health benefits plans to provide coverage that meets the standards for the essential benefits package. Prohibits an essential benefits package from imposing any annual or lifetime limits on coverage. Lists required covered services, including hospitalization, prescription drugs, mental health services, maternity care, and children's oral health, vision, and hearing services. Prohibits cost-sharing for preventive items and services. Limits annual cost-sharing to $5,000 for an individual and $10,000 for a family.
• Requires employers to offer health benefits coverage to employees and make specified contributions towards such coverage or make contributions to the Exchange for employees obtaining coverage through the Exchange. Exempts businesses with payrolls below $500,000 from such requirement.
• Requires the Secretary of Health and Human Services (HHS) to establish: a temporary national high-risk pool program to provide health benefits to certain uninsured individuals who have a medical condition and a temporary reinsurance program to assist participating employment-based plans with the cost of providing health benefits to retirees and their beneficiaries.
• Amends the Public Health Service Act, the Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code to set forth provisions governing health insurance plans and issuers, including to prohibit rescission of health insurance coverage without clear and convincing evidence of fraud; require the option of extending coverage for children under 27 years of age; limit preexisting condition exclusions; and prohibit aggregate dollar lifetime benefit limits.
• Extends COBRA coverage (health insurance continuation benefits) until an individual becomes eligible for health insurance coverage through the Health Insurance Exchange under this Act.
• Establishes the Health Choices Administration as an independent agency to be headed by a Health Choices Commissioner. Establishes the Health Insurance Exchange within the Administration to facilitate access of individuals and employers to various choices of affordable, quality health insurance coverage, including a Public Health Insurance option.
• Requires the HHS Secretary to offer an Exchange-participating health benefits plan. Sets forth provisions regarding the operation of the Public Health Insurance option.
• Provides for grandfathered health insurance coverage.