The Senate's Turn...

Harry Reid had a simple threefold task: (1) get a Senate bill out ASAP, (2) keep total costs below $900b and (3) make sure at least 60 senators would go for it. Here's his attempt:

• Major provisions of reform (e.g., creation of health care exchanges, expansion of Medicaid to 133% of Federal poverty level) delayed from 2013 to 2014
• States can opt out of the government run public health plans (via individual state legislation)
• Beginning in 2014, most Americans will be required to purchase health insurance or face fines of $95 that year, growing to $750 by 2016; note that many worry that the fines are not stiff enough to motive enough to purchase insurance
• Employers are not mandated to provide insurance, but firms of greater than 50 employees who don't will pay a penalty if workers receive government subsidies to purchase coverage through one of the new exchanges
• New taxes? 5% on elective cosmetic surgery, an increase in Medicare payroll tax on individuals earning over $200,000 a year and couples over $250,000.
• High cost insurance plans (with yearly premiums of $8,500 for individuals or $23,000 for families) will be subject to a 40% excise tax - - a provision designed to reduce health care costs
• CHIP program not eliminated as some had speculated
• Rescissions (i.e., when insurers cancel policies once holders become sick) no longer possible
• Medicare will remove all copays and cost sharing on preventive services

The Senate could begin debate on this as soon as tomorrow.