On the morning of December 24th, the Senate passed their version of a sweeping health care reform bill. The bill, passed with 58 Democratic and two Independent votes over unanimous Republican opposition, would materially alter the health insurance landscape in America.

With bills now passed in both the House and Senate, the next step is to reconcile key differences into a single bill that will need to pass both houses before being delivered to the White House to be signed into law. Congress will reconvene in mid-January to take up reconciling the two bills, and final passage is expected in late January or early February 2010.

With the achievement of a 60-vote compromise in the Senate, the enactment of health care reform legislation looks more likely than ever. Employers should educate themselves on the potential changes, although most will wait to adopt new strategies or modify existing approaches to health care until the upcoming final round of negotiations and amendments are completed.

This article provides highlights of the Senate bill and a timeline of the proposed reforms. 

This issue of Insight is based on a preliminary assessment of the proposed legislation. Please refer to the text of the bill as the definitive source.

 

Summary of Senate Bill:

Individual and Small Market Reforms
 

	All individuals are required to have insurance or pay a fine (the greater of $750 per person / $2,250 per family or 2% of annual income). The fine increases by a cost of living adjustment and is phased in through 2016. Exemptions include coverage gaps of less than three months or if the lowest cost available plan costs more than 8% of income.
	Creates state-based Health Insurance Exchanges where individuals can shop for standardized insurance policies. Options will include two private plans managed by the federal Office of Personnel Management, one of which will be non-profit. No public plan option.