What the Heck is Happening with the Healthcare Reform Bill Today?

With all the talk on healthcare reform, Obama, abortion, the Senate, the House of Representatives, and even Massachusetts, how can anyone stay in the know? Let me break it down for you.

What happened today?

In a rare Sunday session, the U.S. House of Representatives (the House) voted on a few things.

They first voted on the rules of debate, which were adopted 224 to 206 votes. This vote allows formal debate to begin on the healthcare bill. (Note: in the House a measure needs 216 votes to pass.) This vote demonstrates that the House will (likely) have the 216 votes needed to pass the healthcare bill.

Now, what is the healthcare bill? Basically, the measure would require most Americans to purchase healthcare insurance and offer government subsidies for those who cannot afford it. According to projections, if passed this bill will extend coverage to 32 million Americans, leaving only 5% of non-elderly citizens uninsured.

How? First, millions will be added to the government health program for the poor (Medicaid), then those who lack access to affordable care through their workplace would receive tax credits to purchase their own insurance. This bill requires (for the first time) that all Americans obtain health insurance - non-compliance would result in a penalty of at least $695/year. Likewise, employers would be required to offer coverage or face a $2,000/year penalty per worker.

The measure also includes provisions barring insurers from denying coverage to people with preexisting medical conditions or dropping policyholders who become ill. Within a year, insurers would not be able to deny coverage to children because of pre-existing conditions, impose lifetime limits on coverage and drop people from coverage when they get sick.

Let's talk about abortion. In an attempt to convince conservative democrats to support the bill in the House, the White House today agreed to underscore and enforce the federal ban on funding for abortion. President Obama will sign an Executive Order to this effect if/when the bill is passed.

In this Sunday session there are two measures before the House dealing with Obama's top domestic priority, healthcare reform. The first is the Senate's version of healthcare bill, which passed that chamber on Christmas Eve 2009.

The second measure is the House's new healthcare legislation, which revises the Senate bill. This measure can otherwise be described as the "critical differences." The reconciliation bill makes several key changes to the Senate measure. It would increase the Medicare payroll tax on those who earn more than $200,000 a year for single filer and $250,000 for joint filers. In addition, beginning in 2013, such earners would pay 3.8 percent on dividend, interest and other unearned income. The bill also provides more help with insurance premiums for lower- and middle-income consumers and expands Medicaid funding to states.

If passed the first bill (the Senate bill) would head to the president for his anticipated signature. The second would immediately return to the Senate for final reconciliation of the House and Senate differences.

Late Sunday evening the first measure (the Senate bill) passed in the House 219 to 212 votes. The 219 “yea” votes were from Democrats, while all 178 Republican representatives and 34 Democrats voted "no."