House Committees Announce Outline of Health Reform Proposal

The three committees with jurisdiction over health reform in the House of Representatives, the Energy and Commerce, Ways and Means, and Education and Labor Committees, have released a draft outline of their health reform proposal. Components of the proposal include:

· Investments in the health care workforce to improve access to primary care.

· Investments in prevention and public health programs.

· Insurance market reforms that would prohibit pre-existing condition exclusions, prohibit rating based on health status, gender, or occupation, and limit premium variation by age.

· Creation of a National Health Insurance Exchange for individuals and small employers to choose from private health insurance options or a new public plan option. It would allow states to develop state or regional exchanges.

· Sliding scale premium subsidies in the Exchange for individuals and families with incomes between Medicaid eligibility and 400 percent of the federal poverty level. It includes small business tax credits for the purchase of coverage.

· Creation of various levels of standardized benefits and cost-sharing arrangements with an independent advisory committee to make recommendations on benefit packages.

· A mandate for all individuals to have health insurance coverage, except in cases of hardship. Employers would be required to offer coverage or pay into a fund. Small low-wage businesses would be exempt.

· Reductions in payments to Medicare Advantage plans and new provider payment methods to promote coordinated care and reward quality and efficiency.