Late on Saturday evening, November 7, the U.S. House of Representatives passed its version of health care reform legislation (H.R. 3962, “The Affordable Health Care for America Act”) by a vote of 220 to 215. Thirty-nine Democrats and all but one Republican (Representative Joseph Cao of Louisiana) voted against the bill.
During consideration of the health care bill, the House adopted only one amendment – sponsored by Representative Bart Stupak (D-MI) – to ban the use of federal funds for abortion. The amendment passed by a vote of 240 to 194, with one member voting “present.” This issue is shaping up to be a particularly controversial one as the Senate considers its options for health care reform.
The House Bill:
•Does not include provisions to create greater availability to wellness programs for employees and employers.
•Mandates that employers provide and pay for “qualified” health care coverage for their employees. If employers do not provide coverage – or do not provide the specific “qualified” coverage at an “affordable” price, as determined by the federal government, they must pay an 8 percent payroll tax.
•Erodes the effectiveness of the Employee Retirement Income Security Act (ERISA) by applying state law to employer- purchased coverage in a health insurance exchange; prohibits post-retirement reductions of retiree health benefits by group health plans, unless reductions are also made to active employees’ health benefits; and requires employer-sponsored plans to meet detailed federal requirements. These changes would likely result in additional costs and burdens on multi-state employers who could face different rules in different states.
•Establishes a public insurance plan option that, as currently drafted in the House bill, could result in cost-shifting to private plans, potentially increasing costs for both employers and employees.
