Senate Bill Sets Lines for Health Showdown - WSJ.com

Senate Bill Sets Lines for Health Showdown - WSJ.com

(Excerpt)

Link to his plan

Breaking Down the Baucus Bill
New taxes: Excise tax of 35% on 'gold-plated' health plans (those valued above $21,000 for family plan). Annual fees of $6 billion for health insurers, $4 billion for device makers and $2.3 billion for drug makers, all based on market share.

Insurance regulation: Bars insurers from denying coverage over pre-existing conditions. Sets up 'exchanges' where insurers offer plans in a standardized format for comparison-shopping.

Medicaid expansion: Adults and children up to 133% of federal poverty level (currently $30,000 a year for family of four) get coverage under Medicaid.

Subsidies: Tax credits available starting in 2013 for people between 134% and 300% of poverty level, and in certain cases up to 400% of poverty level. Credits designed so that no one up to 400% of poverty level pays more than 13% of income toward health-insurance premiums.

Coverage requirement: Most individuals must have health insurance or pay a fine. Maximum fine is $1,500 for families up to 300% of poverty level and $3,800 for families above 300% of poverty.

Small business: Tax credits up to 50% of contribution to health-insurance premiums starting in 2013.

Larger businesses: Those with more than 50 full-time employees must offer coverage or pay a penalty of up to $400 per employee. Penalty kicks in if employees use federal subsidies to buy insurance.

Illegal immigrants: Not eligible for federal subsidies and don't face coverage requirement.

Abortion: Tax credits can't be used to pay for abortions. However, private insurers offering plans on insurance exchanges are permitted to include abortion among covered service