Health insurance reform will cut the deficit while benefitting families, small businesses

March 22, 2010

Washington, D.C.—Nevada Senator Harry Reid today made the following statement on the health insurance reform bill that will be signed into law tomorrow by President Obama.  The bill, which Reid led to passage in the Senate, will give more than 600,000 Nevadans access to affordable coverage; provide tax credits for those who can’t afford insurance; and improve Medicare.  The bill will help families that can’t afford insurance, individuals facing discrimination for pre-existing conditions and small businesses that have been unable to offer health benefits to their employees. This bill combined with the Health Care and Education Reconciliation Act will also reduce the federal deficit by $143 billion in the first ten years it is law.

“More than a half million Nevadans are now a step closer to quality, affordable health care,” Reid said.  “Tens of thousands of Nevada small businesses are a step closer to getting critical relief to support health care for their employees.  More than 200,000 Nevada seniors are a step closer to a stronger Medicare program that puts money back in their pockets instead of padding insurer profits.  This story can be told all over America, and it represents the real impact of the passage of health reform in the House.”

Highlights of Benefits of Health Insurance Reform for Nevada:  Patient Protection and Affordable Care Act when Combined with the Health Care and Education Reconciliation Act Under Consideration in the Senate this Week

A Stronger Health Care System for Nevada:

·         Up to 518,000 residents who are uninsured and 132,000 residents who have individual market insurance will gain access to affordable coverage.

·         Up to 311,000 residents will qualify for premium tax credits to help them purchase health coverage.

·         328,000 seniors will receive free preventive services and 58,200 seniors will have their drug costs in the Medicare Part D “donut hole” covered over time.

·         Up to 24,000 small businesses will be eligible for tax credits for premiums.

 

Premium Tax Credits to Expand Private Insurance Coverage in Nevada

·         Reform will provide $5.0 billion in premium tax credits and cost-sharing tax credits for residents in Nevada from 2014 to 2019 to purchase private health insurance. This is $180 million greater than under the Senate-passed bill.

Reduced Premiums

·         Health insurance reform will lower premiums in the nongroup market by 14 to 20% for the same benefits – premium savings of $1,380 to $1,970 for a family in Nevada.

 

Increased Medicaid support 

·         The Federal government will fully fund the coverage expansion for the first three years of the policy, and continue substantial support, paying for 90% of costs after 2020, compared to Nevada’s current FMAP of 50.2%.

·         In total, Nevada could receive $3.6 billion more dollars in federal funds for Medicaid as a result of the expansion from 2014 to 2019, $240 million more than under the Senate-passed bill.

 

Improved Value for Medicare Advantage

·         The 228,000 seniors in Nevada who are not enrolled in a Medicare Advantage plan will no longer cross subsidize these private plans, saving $45 in premium costs per year. 

·         The proposal will gradually move toward a fair payment system that rewards performance.