Questions, answers about health care legislation
WASHINGTON -- The health care overhaul debate in Congress now centers on two bills: the measure that the House passed earlier this month, and the new Senate Democrats' version unveiled Wednesday. They differ in important ways. Here are some answers to questions about the bills.
Q: Would the health care bills before Congress require that I obtain health insurance and punish me if I don't?
A: Starting in 2013 or 2014, most Americans would be required to have health insurance coverage or face a financial penalty. Individuals would have to show proof of coverage on their federal income tax returns. Exempt from this requirement would be those with low incomes as well as American Indians and individuals who claim religious exemptions.
The House would require most people to have coverage by 2013 or pay a penalty of up to 2.5 percent of their incomes. The penalty wouldn't exceed the cost of the average plan sold in new insurance exchanges. People who don't make enough money to file income tax returns would be exempt.
The Senate requirement would take effect in July 2014.
You would be exempt if the cost of insurance exceeded 8 percent of your income.
Q: I own a business. Would I have to provide health insurance to my workers?
A: The House and Senate bills handle this issue differently, but both impose some obligation on all but the smallest employers.
Under the House bill, companies with annual payrolls above $750,000 would be required to provide insurance or pay a fee equal to 8 percent of payroll. The fees would be lower for firms with payrolls between $500,000 and $750,000; companies with payrolls smaller than $500,000 would be exempt.
Under the Senate bill, employers wouldn't be required to provide coverage. If any of their workers got government assistance in getting insurance, however, the employers would have to pay an annual fee of $750 for each of their employees. Companies of fewer than 50 workers would be exempt.
Q: Would I be able to buy health insurance from the "public option" that I've heard so much about?
A: Maybe. Both bills would make a public option -- a government-run insurance plan -- one of the choices offered to people who are eligible to buy coverage through either state or national exchanges. The Senate would allow states to opt out of offering a public option. Uninsured people, and those who purchase their own coverage or work for eligible small businesses, would be able to buy through the exchange.
Q: I'm older than 65. How would the legislation affect seniors?
A: Under both bills, government payments to Medicare Advantage, the private-plan part of Medicare, would be cut back. If you are one of the 10 million beneficiaries who are covered by those private plans, you might lose benefits such as free eyeglasses, hearing aids and gym memberships.
However, both bills would eliminate all Medicare co-payments on preventive services.
