Health Care Bill Timeline

I am sure there are more landmines hidden in the Senate Bill, but the Heritage Foundation has parsed an implementation schedule from the most recent bill:

2010: Physician Medicare payments decrease 21% effective March 1, 2010

2011: "Annual Fee" tax on health insurance, allocated according to share of total premiums. Begins at $2 billion in 2011, then increases to $4 billion in 2012, $7 billion in 2013, $9 billion in the years 2014, 2015, and 2016, and eventually $10 billion for 2017 and every year thereafter. Two insurers in Nebraska and one in Michigan are exempt from this tax.

2012: Medicare payment penalties for hospitals with the highest readmission rates for selected conditions.

2013: Medicare tax increased from 2.9% to 3.8% for incomes over $250,000 (joint filers) or $200,000 (all others). (This is stated as an increase of 0.9 percentage points, to only the employee's share of the FICA tax.)

2014: Individual mandate begins: Tax penalties for not having insurance begin at $95 or 0.5% of income, whichever is higher, rising to $495 or 1% of income in 2015 and $750 or 2% of income thereafter (indexed for inflation after 2016). These penalties are per adult, half that amount per child, to a maximum of three times the per-adult amount per family. The penalty is capped at the national average premium for the "bronze" plan.

2015: Establishment of Independent Medicare Advisory Board (IMAB) to recommend cuts in Medicare benefits; these cuts will go into effect automatically unless Congress passes, and the President signs, an override bill.

2016: Individual mandate penalty rises to $750 per adult ($375 per child), maximum $2,250 per family, or 2% of family income, whichever is higher (capped at the national average premium for the "bronze" plan). After 2016, the penalty will be increased each year to adjust for inflation.

There is a link in the original to a more detailed timeline.  There is a lot more that is left out of this brief timeline, see it here.


  1. morganovich:

    the IMAB will be the controller of rationing and service denial.

    the fact that they can cut anything they want without any approval by elected officials makes them pretty much suzerain of government healthcare.

    whether they become a "death panel" or whatever is not necessarily clear, but they certainly have to power to be.

  2. gn:

    Bummer that they are putting a stake through the heart of FSA/HSA/HRA-based plans with the $2500 max. That's not nearly high enough for a family.

    There goes one of the few good ideas to come out of the healthcare-insurance-industrial complex in the last 20 years, and possibly our last chance (via consumer cost-awareness) to "bend" the cost curve.

  3. Xmas:

    Reading through the PDF scared the crap out of me. The insistence that insurance companies have an 85% "medical loss" while slapping larger and larger taxes (which don't count towards "medical loss) and requirements on them seems like a sure-fire way to kill health insurance provided by private companies.

  4. Noumenon:

    This is an informative post, thanks for posting on this. Same goes for the GMAC one.