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Kimberly Amadeo

Health Care Reform Bill Lowers Deficit

By March 22, 2010

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The U.S. House of Representatives passed the Reconciliation Act of 2010 (H.R. 4872) which combined parts of the Senate Health Care Reform Bill and a subsequent plan put forth by President Obama on February 22.  Health care reform will cost $940 billion over the next ten years, but will reduce the deficit by $130 billion by decreasing costs in other related programs and by increasing revenues through additional taxes.

Share Your Opinion - Should Health Care Be Reformed?

What It Means to You

If you like your health care insurance, reform won't change it. If you don't, Obama's plan will mean lower health insurance costs. Without health care reform, Medicare and Medicaid costs will rise from 6% (current) to 15% of GDP by 2040. Health care reform will extend insurance to 32 million Americans, reducing expensive visits to the emergency room, which we all eventually pay for anyway.

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(Photo Credit: Jason Greenspan /Getty Images)


March 24, 2010 at 11:34 pm
(1) Phillip says:

Kimberly – I hope you are right – I am going to have to sit back and watch. I have listened to both sides with as open a mind as a conservative can and really can’t figure the entire thing out. On one hand I can’t see how health insurance cost will go down with having to take on high risk policies – want they cover the cost with higher premiums instead of taking a hit?
I am all for everyone having coverage but I am not sure about the small crack or chip at our freedom of big government mandate.

Waiting and Praying it ‘Will’ be the best for our country and all the people that make up this Great Land.


March 25, 2010 at 7:12 am
(2) Kimberly Amadeo says:

Hi Phillip,

I agree it is very confusing, which is another reason I think many people are against it. The legislative process makes it even more confusing – half the bill was approved, and the other half is being held up in the Senate.

The bill is supposed to lower costs because it requires everyone to be in the health insurance pool. A lot of healthy people don’t have health insurance because they are self-employed, and so not covered by corporate insurance. or are young and don’t really need it. These people will lower the statistics, and make the insurance cheaper. They will compensate for the unhealthy people without insurance who will get in since the prohibition against pre-existing conditions will be removed.
Or at least that is the thinking.

March 30, 2010 at 12:10 pm
(3) Bill L says:

K – The only way this bill reduces the deficit, is by collecting 10 years of taxes and fees, while paying out only 6 years of benefits. On a apples to apples basis, the bill will not save money at all.

Additionally, this analysis will highlight in reality what the bill does and does not do:


April 5, 2010 at 7:38 pm
(4) useconomy says:

Some benefits will start this year. For example, small businesses will get tax credits to cover up to 35% of their total employee premium payments. This will increase to 50% in 2014.

Medicare beneficiaries who fall into the “Part D prescription drug doughnut hole” will get a $250 rebate. They get a 50% discount on brand name drugs in 2011, and the doughnut hole is eliminated in 2020.

See more on how the act will reduce the deficit.

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