With no discussion, the Florida Senate on Monday approved a bill that seeks to prevent Floridians from being forced to buy health insurance — taking aim at the federal Patient Protection and Affordable Care Act (PPACA). Senators voted 30-7 to approve HB 1193, which passed the House last week.
The bill passed by the state Senate today states that, a “person may not be compelled to purchase health insurance,” though it includes exemptions such as when insurance is required as a condition of employment.
House members this week are expected to approve a proposed constitutional amendment (SJR 2) that seeks to allow Floridians to opt out of the federal coverage requirement, which is widely known as the “individual mandate.” The Senate has already approved that proposal, which would go to voters in 2012.
Under the Affordable Care Act, states are granted the authority to opt out of the individual mandate for coverage under the “Empowering States to be Innovative” amendment written into the legislation by Sen. Ron Wyden (D-Ore.). According to Sen. Wyden, the amendment allows states to setup their own health care system as long as “they can meet the coverage requirements of the bill.” They can choose to have a mandate or not.
Although the federal government is not requiring Americans to purchase health insurance, it is imposing a tax on citizens who do not purchase health insurance, which is within its rights under the Constitution and much like Medicare, Medicaid and social security taxes.
The immediate benefits under the Affordable Care Act are:
- Insurance companies will no longer be able deny people under the age 19 coverage because of pre-existing conditions. In 2014 this will be banned for adults (kicks in the same time as the mandate for coverage to not hurt the insurance companies).
- People can stay on their parent’s insurance plans until they are 26.
- Insurance companies can no longer drop coverage for someone when they get sick , if they are paying their premiums.
- A temporary high-risk pool will be set up to cover adults with pre-existing conditions. Health care exchanges will eliminate the program in 2014.
- Plans must cover checkups and other preventative care without co-pays.
- Insurance companies can no longer put a lifetime cap on benefits.
- Small businesses will be entitled to a tax credit for 2009 and 2010, which could be as much as 50% of what they pay for employees’ health insurance.
- Authorizes early funding of community health centers in all 50 states (Bernie Sanders’ amendment). Community health centers provide primary, dental and vision services to people in the community, based on a sliding scale for payment according to ability to pay.
- Seniors will get a rebate to fill the so-called “doughnut hole” in Medicare drug coverage.
- Any new health insurance plan must now have an appeals process for coverage determinations and claims.
- New screening procedures will be implemented to help eliminate health insurance fraud and waste.
- Medicare payment protections will be extended to small rural hospitals and other health care facilities that have a small number of Medicare patients.
- Non-profit Blue Cross organizations will be required to maintain a medical loss ratio — money spent on procedures over money incoming — of 85 percent or higher to take advantage of IRS tax benefits.
- Chain/Fast food restaurants will be required to provide a “nutrient content disclosure statement” with their food products.
- A temporary program is established for companies that provide early retiree health benefits for people aged 55 to 64.
- The Secretary of Health and Human Services will set up a new web site to make it easy for Americans and small businesses in any state to find information on how to purchase health insurance.
- A temporary two year credit of up to $1 billion will encourage investment in new therapies for the prevention and treatment of diseases.
- Requirement that all insurers must post their balance sheets on the Internet and fully disclose administrative costs, executive compensation packages, and benefit payments.
