Points from Senate Finance Bill and how it might play out

Max Baucus and Senate Finance have released an overview of their reform bill--which will be released in full next week. Impact to employers:

• Tax credits to employers with less than 25 employees--35% for 2 years then expanded after that with credits for employees with wages under $40,000.
• Creation of purchasing "Exchanges"
• Elimination of "Mini Med or Limited health benefit" plans
• Small group reform--less than 50 employees in 2013 and less than 100 by 2017. Requires guaranteed issue, no pre-X, etc.
• Rating variations only for tobacco use (1.5:1), Age (5:1) and geography(7.5:1)
• Benefit option standards and minimum benefits(including a "young invincibles policy!)
• 2013 individual requirement mandate--with penalties based on FPL--maximum of $3800 for a family.
• 200 or more employees--employer must enroll all employees (with few caveats)
• Requirement for employers with more than 50 employees to pay premium or a fee. Employees can opt out if on Medicaid or cost to employee exceeds 13% of income.

There is much more--but this is an introduction. This is not law and it can and most likely will deviate. Nonetheless, this give us some insight as to what things might look like.

One other note--President Obama has created a unique situation in offering to compromise--this allows him to utilize that offer and if rejected by Republicans to be comfortable in using budget reconciliation to proceed with health care reform. Want to know more--check out this quick strategy article.

http://thehill.com/homenews/administration/58233-obama-sets-stage-for-using-budget-maneuver-to-pass-health-reform