Historic step toward health insurance reform

In March, Pres. Barack Obama signed landmark health insurance reform legislation into law. By his side was Sen. Harry Reid, who shepherded the legislation through the Senate. Passage of this crucial legislation also wouldn't have been possible without the votes of Congresswomen Dina Titus and Shelley Berkley.

“More than a half million Nevadans are now a step closer to quality, affordable health care,” Reid said in a release Monday.  “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.”

Here are the highlights of this important bill, and a few of the ways it will change the lives of Nevadans for the better.

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.