Health Care Reform

In 2010, Congress passed and the President signed into law the Affordable Care Act, after nearly two years of debate and discussion. Early in 2011, Republicans in the House passed legislation to repeal the law. I opposed this effort because, while the law is not perfect, we cannot afford to roll back critical health protections for millions of Americans. Please see my Floor Statement as well as my Press Release for further explanation of my vote on the repeal bill.

I fully expect that adjustments will be made as the Affordable Care Act is implemented, just as changes have been made to the Social Security and Medicare programs. But most importantly, the United States has joined every other developed country in offering health care coverage to its citizens.

On this page, I want to provide helpful information and useful resources so you can get an accurate picture of what this legislation means for you, for our region and for our nation.

Implementation of this law has had positive benefits across the country as new patient protection provisions took effect. During 2010 in Illinois:

84,575 seniors received a $250 check to cover medications when they fell into the Medicare Prescription Drug Coverage Gap
47,200 young adults were allowed to stay on their parents’ health insurance plans up to age 26. These Frequently Asked Questions may help in further explaining this provision.
664 uninsured individuals with pre-existing conditions were enrolled in affordable coverage plans
279 early retirees signed up for Early Retiree Reinsurance to lower their health care costs
$3.5 million was awarded to the Illinois Department of Insurance to assist them with cracking down on premium increases, protecting consumers from abusive practices, and creating an insurance marketplace
$69.5 million in grants were awarded to improve health care and expand the availability of health care professionals in communities around the state
No co-pay is required for preventive and wellness care
Insurance companies cannot drop you when you get sick or injured, place limits on how much they will pay for your care over the lifetime of your plan, or deny coverage to children with pre-existing conditions.

Finally, on January 1. 2011, several new provisions of the law took effect to ensure seniors have access to affordable care and to keep premiums low:

Free preventive and wellness care for seniors on Medicare
A 50% discount on prescription drugs for seniors who fall into the Medicare Prescription Drug Coverage Gap
Improving post-hospital care and reducing unnecessary readmissions for seniors through the Community Care Transitions Program
Preventing insurance companies from raising premiums to pad their profits by requiring at least 85% of premiums cover the cost of providing care and no more than 15% cover administrative costs and profits

Over the next 10 years, many more provisions will take effect to expand insurance coverage to 32 million Americans, slow the sky-rocketing cost of health care, and reduce the deficit by billions of dollars. Please go to www.HealthCare.gov for details on these provisions as well as more information on the Affordable Health Care Act.

I have received calls regarding potential requirements on small businesses under the Health Care Act. I have provided a document, Health Care Reform and Small Businesses, that should address many of the questions small business owners may have.
Another resource for small businesses is the White House's Benefits for Small Businesses Web page.

Links and Resources

The Department of Health and Human Services has provided an on-line tool that will help consumers take control of their health care. This website features information about the Affordable Care Act, including updates on implementation and benefits. The site also provides consumers a variety of health coverage options tailored specifically for their needs in a simple, easy-to-use tool. Visit www.HealthCare.gov for information about health care reform and insurance options for:

Seniors, including prescription drug coverage
Families with children and young adults
Individuals with disabilities and pre-existing conditions
Small businesses

Floor Statement
This is my statement, made during debate in the House of Representatives, and is the best resource for an explanation of my vote in favor of the health care reform legislation.

Floor Statement on Repeal
This is my statement regarding my opposition to the legislation to repeal the Affordable Care Act.

Press Release on Repeal
This is my press release issued after the vote on repeal of the Affordable Care Act.

12th District Benefits (requires Adobe Acrobat reader)
The House Committee on Energy and Commerce prepared an analysis of how the health care legislation will directly benefit residents of the 12th Congressional District.

Myths and Facts

It is important that people understand how this new law will affect them, particularly as there are a number of false claims circulating about what this legislation does and does not do. Some of the most deceptive myths about health care reform legislation include:

SENIORS
Myth: Health care reform will hurt seniors by cutting Medicare and using that money to provide coverage to the uninsured.
Fact: Nowhere in health care reform legislation are any benefits for seniors cut or limited. Seniors will keep the same Medicare coverage they have right now, but their costs will go down and coverage will improve.
(Sections 3601 and 3602, Patient Protection and Affordable Care Act of 2009, P.L. 111-148)

VETERANS
Myth: Health care reform is bad for veterans and members of the armed services because the legislation will not count TRICARE, TRICARE FOR LIFE, or Veterans’ Health Care as “qualified health benefits packages.”
Fact: Health care reform legislation does not change, alter or impact these three health care plans in any way.
(Section 1501, Patient Protection and Affordable Care Act of 2009, P.L. 111-148; Letter from Tammy Duckworth, Assistant Secretary of Public and Intergovernmental Affairs for the Department of Veterans Affairs)

SMALL BUSINESSES
Myth: All small businesses will be required to provide health insurance to their employees.

Fact: 96% of all businesses are completely exempt from any taxes or requirements because they have fewer than 50 employees.
(Section 1513, Patient Protection and Affordable Care Act of 2009, P.L. 111-148; U.S. Small Businesses Administration, "Employer Firms, Establishments, Employment, and Annual Payroll Small Firm Size Classes.")

I have provided a document, Health Care Reform and Small Businesses, that should address many of the questions small business owners may have.

ILLEGAL IMMIGRANTS
Myth: Illegal immigrants or undocumented individuals will be able to receive coverage under the new law.
Fact: No one can receive any benefits under this law or purchase health insurance on the exchanges until they prove their citizenship.
(Section 1411, Patient Protection and Affordable Care Act of 2009, P.L. 111-148)

ABORTION
Myth: The Hyde amendment does not apply to the new law, which means that taxpayer money could be used to pay for abortions.
Fact: The Hyde amendment prohibiting the use of federal funds for abortion applies to the law. In addition, the executive order signed by President Obama and the colloquy on the House floor make it absolutely clear that the Hyde amendment applies and taxpayer money will not be used to pay for abortions.
(Section 1303, Patient Protection and Affordable Care Act of 2009, P.L. 111-148; Executive Order -- Patient Protection and Affordable Care Act's Consistency with Longstanding Restrictions on the Use of Federal Funds for Abortion, signed March 24, 2010).

Myth: State Pre-Existing Condition Plans allow abortion funding.
Fact: Recent concerns that new state health care Pre-Existing Condition plans will allow abortion funding are not correct. All such plans will include a requirement to follow all federal laws and guidance, which prohibit the funding of abortion except in cases of rape or incest, or when the life of the mother is endangered (the Hyde amendment). Click on this link, HHS Press Release to see a clear, concise statement from the U.S. Department of Health and Human Services that the Hyde amendment will apply to all government health care funding, just as it did before the Affordable Care Act was passed.

In addition, HHS again made this prohibition clear as part of recently announced funding restrictions for Community Health Centers -

“Pursuant to existing law, and consistent with Executive Order 13535 (75 FR 15599), health centers are prohibited from using Federal funds to provide abortion services (except in cases of rape or incest, or when the life of the woman would be endangered). This includes all grants awarded under this announcement and is consistent with past practice and long-standing requirements applicable to grant awards to health centers.”

To be clear, the new health care law does not allow for the funding of abortion.

TAXES ON HEALTH CARE
Myth: Starting in 2011, employers will include the cost of an employee’s health care costs as income on a W-2, and employees will pay taxes on their health insurance.
Fact: Employers will report the total dollar cost of health insurance on a W-2, but it is not considered income and individuals will not pay taxes on it. Employers are required to report this cost only to demonstrate to the IRS they are providing affordable coverage to their employees, and it will have no impact on the taxes an employee has to pay. (Section 9002, Affordable Care Act of 2010).

PREMIUM INCREASES
Myth: In 2010, health insurance premiums increased 20% and more for most Americans because of the Affordable Care Act.
Fact: Significant increases in your premiums for 2011 are not because of the Affordable Care Act. According to analysis conducted by the U.S. Department of Health and Human Services (HHS), non-profit organizations, and the insurance industry, the impact of this law on premiums will be minimal (1.5% to 2.5% increase). The major increases in your premiums are due to the rise in the cost of health care, which has skyrocketed in the last decade, and the Affordable Care Act should help bring these costs under control. (FactCheck.org, http://factcheck.org/2010/11/the-truth-about-health-insurance-premiums/).

Here is a timeline which illustrates when key provisions of health care reform will take effect.

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Issues

For questions or comments regarding this web site please contact: web.costello@mail.house.gov

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