The Supreme Court’s decision Thursday to uphold the Affordable Care Act means that the predictions about how it will affect all Americans remain in place. Here are some highlights:
The uninsured
The decision leaves in place the so-called individual mandate — the requirement on Americans to have or buy health insurance beginning in 2014 or face a penalty — although many are exempt from that provision.
In 2014, the penalty will be $285 per family or 1% of income, whichever is greater. By 2016, it goes up to $2,085 per family or 2.5% of income.
Health care exchanges, which are designed to offer cheaper health care plans, remain in place as well.
The insured
Because the requirement remains for people to have or buy insurance, the revenue stream designed to help pay for the law remains in place. So insured Americans may be avoiding a spike in premiums that could have resulted if the high court had tossed out the individual mandate but left other requirements on insurers in place.
Young adults
Millions of young adults up to age 26 who have gained health insurance due to the law will be able to keep it. The law requires insurers to cover the children of those they insure up to age 26. About 2.5 million young adults from age 19 to 25 obtained health coverage as a result of the Affordable Care Act, according to the U.S. Department of Health and Human Services.
Two of the nation’s largest insurers, United Healthcare and Humana, recently announced they would voluntarily maintain some aspects of health care reform, including coverage of adult dependents up to age 26, even if the law was scrapped.
People with pre-existing conditions
Since the law remains in place, the requirement that insurers cover people with pre-existing medical conditions remains active.
The law also established that children under the age of 19 could no longer have limited benefits or be denied benefits because they had a pre-existing condition.
Starting in 2014, the law makes it illegal for any health insurance plan to use pre-existing conditions to exclude, limit or set unrealistic rates on coverage.
It also established national high-risk pools that people with such conditions could join sooner to get health insurance. As of April, a total of only about 67,000 people were enrolled in federally-funded pools established by the health care law, according to the National Conference of State Legislatures.
More than 13 million American non-elderly adults have been denied insurance specifically because of their medical conditions, according to the Commonwealth Fund. The Kaiser Family Foundation says 21% of people who apply for health insurance on their own get turned down, are charged a higher price, or offered a plan that excludes coverage for their pre-existing condition.
All taxpayers
No matter what the Supreme Court had decided, it would have been a mixed bag for all Americans when it comes to federal spending. There is heated dispute over what impact the health care law will have on the country over the long term.
The federal government is set to spend more than $1 trillion over the next decade to subsidize coverage and expand eligibility for Medicaid. The nonpartisan Congressional Budget Office estimated that the law could reduce deficits modestly in the first 10 years and then much more significantly in the second decade.
The CBO said a repeal of the mandate could reduce deficits by $282 billion over 10 years, because the government would be subsidizing insurance for fewer people. But the nation faces costs in various ways for having people who are uninsured. The Urban Institute’s Health Policy Center estimated that without a mandate, 40 million Americans would remain uninsured.
Meanwhile, the Flexible Spending Accounts that millions of Americans use to save money tax-free for medical expenses will be sliced under the law. FSAs often allow people to put aside up to $5,000 pre-tax; as of 2013, they were to face an annual limit of $2,500. Read more in CNN.
This analysis is a joke. The bottom line is if the insurance companies are required to cover more and charge less, or the same, they will go out of business. This will just lead to a single insurance being run/subsidized by the government.
Then you get that wonderful Canadian health system (at BEST!). Good luck with that! It was good while it lasted. FORGET about reasearch and development!
I am from Canada and I am A 20 year Cancer survivor , and I BH had access to the best doctors in Montreal,so please #1 get ur facts before u comment.
You’re in the minority about being happy with the Canadian healthcare system. Besides, that is the best case scenario. The U.S. is a lot bigger with a lot more responsibilities with a lot more illegals.
We should be able to buy life and auto insurance with a pre existing condition as well. The penalty for not buying is $285 which is much cheaper than actually paying for insurance so it is worthwhile not to buy and be covered under the government’s plan if there is any. Regardless, there are probably so few people who will be benefit from this because most of the uninsured are illegal aliens who do not file a tax return anyway and would not buying insurance now.
Why are the Insurance industry stocks losing their value after this decision??
How do u know that chaim is in the minority r u just repeating what u heard on the sean hannidy show?
I’ve spoken to many people from Canada, “Chaim” was the first I’ve heard that likes it.
An illegal will still get free health care. If the illegal can not pay his hospital bill where does the government think he will get the money to pay the fine?
The decision is significant for two reasons:
1) It is a continuation of the new federalism of Lopez and Morrison which severely restrict the power of Congress to regulate interstate commerce.
More importantly,
2) It is the first time the Court has put a limits on the spending clause.
It is a return to Butler and the Laisez Faire Court, a repudiation of Holmes, Cordozo, Brandeis and Frankfurter.
And, as a bonus, starting 1/1/13 all home sales will chip in about 3.38 =/- of the selling price as a tax to the federal government to help provide that health care.
@ A. Lang
You think you can dumb it down so we know what you’re talking about? We’re just the peons on the jury, not lawyers and judges. What your saying maybe significant to you but how about a clue for the Oilam?
Someone I know went into a hospital in Montreal to have a baby and she was asked if she brought Pampers along with her. They don’t even provide the basics like in American hospitals. Is that going to happen here too?
number 11 its happened already
@PJ
Care to elaborate?
there is a reason people come from canada and europe to doctors here what does obama not get about that learn from their mistakes dont take us into the mess the europeans wish they can get out of thats where we are headed
its quite simple why this is a disaster just look at every country that has socialized medicine they all come to america when they need a doctor what do the democrats not get about that?
If this is such a GREAT deal why is He and the Democrats exempt from the coverage? It is just a major step into socialised medicine, the same socialised medicine that has fail everywhere else. The whole thing stinks especially the way he had it passed.
Remember this on EVERY and ANY election. From town hall, to President. VOTE OUT DEMOCRATS!
You guys have no clue what your talking about. Part of the law is that employers must provide health insurence to employees. This is why jobs are being killed. No one wants to hire with such a huge expense.
and will someone define what will happen to those of us on medicare–the monies for this “mandate” (read tax)–has to come from somewhere—-i can only guess that it will further drain medicare and social security—the gov’t will “borrow” from these places again—anyone over 65 —get ready for that final trip on an ice floe!!!!–it worked for the eskimos
The misinformation on this board is incredible. America’s health system ranks 37th out of all industrialized nations. We are far from the best. We are the only industrialized nation that does not provide healthcare for it’s citizens. All elected officials and their staff are subject to the reform legislation. Small companies that provide insurance will have a tax credit to help defray the cost. The savings from Medicare will mostly consist of eliminating fraud and closely reviewing procedures. Most Europeans return to their country for serious illnesses because they cannot afford treatment in this country. Ten years from now, Americans will love the reform package as much as they do Social Security and Medicare. It’s not perfect but it’s a good start to a viable program.
If you pay attention to anything at all when you pay your taxes, you already pay to cover the cost of the uninsured in America, illegal or otherwise (Many Americans are currently uninsured so your stuff about illegals is pure ignorance in its finest form). So, why not have every American pay a flat rate to cover everyone, which in the long term will lower the cost you have to pay in taxes, especially when the number of insured Americans is on the decline due to the economic downturn and inflation.
#21 your info is wrong its a fact there are always people coming from israel canada and all over europe for healthcare in america you are misinformed and acting knowledgable get your facts straight