Obama finalizes reconciliation bill
President Barack Obama signed the Health Care and Education
Reconciliation Act on Tuesday, marking the final changes to
newly passed health care reform legislation and adding
provisions to improve the national student loan system.
The act, which many are referring to as the “fixes” bill,
reflects
agreements between the House and Senate that will
expand health insurance subsidies for lower- and middle-income families; give
tax credits to employers to help offset the costs of providing health
insurance; prohibit health insurance companies from denying coverage to people
with pre-existing conditions or canceling coverage for those who become ill;
and offers $250 to help seniors who fall in the Medicare “doughnut
hole” pay for prescriptions.
In addition to health reform changes, the bill will also restructure the
national college student loan system — reinvesting funds previously
allocated as federal subsidies to commercial banks that provided student loans.
The White House projects that ending these wasteful subsidies will free
up nearly $68 billion over the next 11 years. The changes will provide more
funding for Pell Grants. Other provisions aim to improve community colleges and
help student borrowers manage their debt by capping loan repayments at 10% of
their discretionary income.
After the reconciliation changes, the health care reform bill is $65
billion more expensive than it was last week, with a total price tag of $940
billion over the next 10 years, according to wire reports.
Karen Ignagni, president and CEO of America’s Health Insurance
Plans, called the act a “significant step forward for the country”
but noted that the changes will only be sustainable if they are paired with
cost-control efforts. “Ultimately, the
success of health care reform will depend on whether or not
soaring costs are brought under control and coverage becomes more
affordable for working families and small businesses,” Ignagni
said in a press release.
Although the debate in Congress has ended, many are voicing opposition
to the new law. During the past week, 14 state attorneys general have filed
suit to overturn the bill in a federal court, questioning the constitutionality
of mandating individual citizens to purchase health insurance from a third
party.
Two small physician groups, the conservative Association of American
Physicians and Surgeons and the nonprofit NJ Physician Group, have filed
similar suits stating that the new bill will reduce the quality of care that
patients receive and increase health care costs.