Health Care Reform

In my opinion the healthcare reform has many advantages that would help the healthcare industry to be more competitive and fair as far as the private sector is concerned. The most important plus of this reform is the reduction of the overall deficit by $130 billion in the first ten years and $1.2 trillion over next 10 years. Moreover, it is going to cover 32 million uninsured American. Self-employed can now buy state-based exchanges with subsidies available to individuals and families with income between the 133 percent and 400 percent of poverty level. In 2014 separate exchanges would be created for small businesses to purchase coverage. Another good advantage is the introduction of three tax payrolls. Starting in 2012, the Medicare Payroll Tax will be expanded to include unearned income. More Specifically, there will be a 3.8 percent tax on investment income for families who make more than $250,000 per year ($200,000 for individuals). What I really liked is that beginning in 2018 Excise Tax will be effective which means that insurance companies will pay a 40 percent on what is called (Cadillac) high-end insurance plans worth over $27,500 for families ($10,200 for individuals) excluding dental and vision plans which will not be counted in the total cost of a family's plan. The third tax is Tanning Tax which is basically 10 percent on indoor tanning services. Donut hole will be closed by 2020 and seniors who are in that gap will receive $250 rebate. The amazing thing in this reform is the following. Six months after enactment, insurance companies could no longer deny children coverage based on a preexisting condition. Also, starting in 2014 insurance companies cannot deny coverage to anyone with preexisting conditions. Insurance companies must allow children to stay on their parent's insurance plans until age 26th. What I think is a disadvantage in this reform is that illegal immigrants will not be allowed to buy health insurance in the exchanges even if they pay...