Health-care reform will impact Hawaii
By: Bryna Stankiewicz
3/23/2010
Although Hawaii’s unique Prepaid Healthcare Act will remain intact, the far-reaching health-care reform passed by the U.S. House of Representatives Sunday night will now require insurers to provide coverage to individual policyholders, according to state Insurance Commissioner J.P. Schmidt.
Schmidt also said the state will have to spend $300 million more on Medicaid because of expanded coverage required by the health reform act.
The House passed the Senate’s version of health-care reform Sunday night by a 219-212 margin, sending it to President Barack Obama for his signature. All Republicans voted against the bill, joined by 34 Democrats.
The legislation will enable an estimated 32 million additional Americans to obtain health insurance coverage by expanding eligibility for Medicaid and providing subsidies for low- and moderate-income individuals to purchase private insurance.
Individuals and small businesses could buy insurance through new state-based exchanges, which would offer plans that must meet minimum federal standards. Some small businesses with low-wage workers would be eligible for temporary tax credits to help them pay for insurance coverage.
Individuals would be required to obtain insurance coverage, and businesses that employ more than 50 workers would have to provide coverage or pay a penalty of $2,000 per worker if any of their employees receives government-subsidized coverage on their own.
The legislation also would impose a tax on high-cost insurance plans beginning in 2018. New taxes also would be imposed on insurance plans, medical device manufacturers and pharmaceutical companies. Individuals who make more than $200,000 would face additional Medicare payroll taxes.
Insurance companies would no longer be able to deny coverage based on pre-existing conditions or rescind coverage when someone gets ill. They also would be prohibited from capping the amount of benefits individuals could receive over their lifetime.
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