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Home | Finance


Sen. Nelson offers 14 amendments to health care bill

By: Individual Health Insurance

Heading into this week’s opening debate on the Senate Finance Committee’s health care bill, Sen. Bill Nelson (D-Orlando) today unveiled 14 specific amendments he filed to the 220-page piece of legislation, according to Nelson's office.

One of Nelson’s amendments this weekend took center stage in the debate. On ABC’s Sunday morning news show “This Week” host George Stephanopoulos asked President Barack Obama whether he supported a Nelson amendment that’s aimed at preventing cuts to a large number of seniors on Medicare.

“George, I’m not going to be negotiating particular provisions of the bill sitting down with you here right now,” Obama answered.

The amendment in question is intended to protect hundreds of thousands of seniors who, since 2006, have signed up for Medicare Advantage, according to Nelson's office. More than 900,000 Florida seniors, or one-third of the state’s Medicare beneficiaries, have these plans. In Florida ’s Dade, Broward and Palm Beach counties, an average of 41 percent of all Medicare enrollees have them. The Finance Committee bill would make cuts in a program covering almost 400,000 seniors in just these three counties.

Nelson’s amendment is aimed at preventing cuts to people currently in Medicare Advantage, according to Nelson's office. But going forward, it would eliminate excessive reimbursements for Medicare Advantage insurers. “It’s the right thing to do for taxpayers in the long-term,” Nelson said. “And it’s the fair thing to do short-term for the seniors.”

With Medicare as his chief priority, Nelson also filed an amendment to require that drugmakers provide rebates to a major part of the Medicare program, like they must do for Medicaid. The Congressional Budget Office says this could raise more than enough money to cover the current gap in Medicare’s prescription drug coverage, known as the donut hole. The CBO estimate is $80-billion-plus in savings from rebates over 10 years, according to Nelson's office.

Nelson also has an amendment to eliminate a provision in the health care bill that could let insurers, in effect, circumvent regulation in states with tougher pro-consumer laws.

The debate over revamping the nation's health care system kicks into higher gear in the Senate on Tuesday, when the Finance Committee opens talks on its bill and also on a list of changes wanted by Nelson and the other senators on the 23-member panel. The senators have offered a total of 564 amendments, according to Nelson's office.

Below are the drafts of Nelson’s 14 specific proposals.
An Amendment to Prevent Taxation of Retiree Health Benefits

Description of Amendment: The Chairman’s Mark imposes an excise tax on insurers if the aggregate value of employer-sponsored health coverage for an employee exceeds a threshold amount. The threshold amount is $8,000 for individual coverage and $21,000 for family coverage in 2013. After 2013, the threshold amounts are adjusted annually based on an inflation measurement.

In general, health insurance costs are higher for pre-Medicare retirees. The higher cost of health insurance for retirees reflects the greater health care expenses older populations incur. Older individuals are disproportionate users of health care because they have more frequent and more severe health problems. Average per capital health care spending among individuals age 55-64 is more than double the per capita health care spending of 19-44 year olds. As a result, employer-sponsored health coverage provided to pre-Medicare retirees is generally more expensive than coverage for active employees.

The amendment will reduce the likelihood that employer-provided retiree health coverage will be taxed, reduced, or eliminated under the legislation. The amendment modifies the Chairman’s Mark by increasing the high cost health insurance excise tax threshold amount to $10,000 for individual coverage and $25,000 for family coverage for employer-sponsored retiree health coverage. After 2013, the higher threshold amounts shall be indexed using the same inflation measurement as the lower threshold amounts. The definition of retiree health coverage shall be established by the Department of Treasury and shall not include coverage for individuals under the age of 55. The Secretary of the Treasury shall prescribe such regulations as are necessary to carry out the purposes of this amendment.

Article Source: http://www.aword2thewise.com

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