Script to print out a page with out banner and other graphic elements U.S. Congressman Jerry Costello 12th District of Illinois | Health Care Reform

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Quote of the Day

"The U.S. economy expanded at a faster clip than initially forecast in the third quarter, helped by more robust consumer spending and by stronger exports. The economy grew at a 2.5% annualized pace in the quarter, revised up from the initial estimate of 2.0%, the government said in its second estimate of quarterly gross domestic product. GDP growth was 1.7% during the second quarter.”
- Wall Street Journal’s MarketWatch, 11/23/2010

Health Care Reform

Congress has passed health care reform legislation and the President has signed it into law. This is an issue that has been reviewed and debated for decades and has consumed a considerable portion of the legislative calendar in the 111th Congress. 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.

On September 23, a number of important provisions of the Affordable Health Care Act took effect. Among these are:

  • Adult children can stay on their parents' plan until age 26
  • No co-pay for preventive services
  • Insurance companies cannot drop you when you get sick or injured
  • End of lifetime limits on coverage
  • Insurance companies cannot deny coverage to children due to pre-existing conditions
  • Right to standardized appeal process
  • Ability to choose your own OB/GYN and pediatrician from within plan network

Please go to www.HealthCare.gov for details on these provisions as well as more information on the Affordable Health Care Act.

I have had a number of calls regarding parents keeping or adding their adult children on their health plan. These Frequently Asked Questions may help in further explaining this provision.

I have also 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.

Links and Resources

HealthCare.gov badge

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

The State of Illinois started accepting applications for the Illinois Pre-Existing Condition Insurance Plan (IPXP) on August 20. Benefits for enrollees will include primary and specialty care, hospital care, and prescription drugs.

To be eligible for IPXP coverage, an applicant must satisfy the conditions set forth in the Affordable Care Act:
1. Uninsured for at least six (6) months
2. Have a pre-existing condition
3. Be a lawful resident of the United States.

You can view the IPXP application on-line at Insurance.Illinois.gov/IPXP, or call (877) 210-9167 or (877) 883-8551 (TTY).

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.

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.

Health Care Reform E-newsletter
This is the e-newsletter I sent regarding health care reform.

Health Care Reform Mailer (requires Adobe Acrobat reader)
This is a copy of the mailer I sent regarding health care reform.

Take the following two links to view the full text of the health care reform legislation.

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.")

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 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.

STATES
Myth: The expansion of Medicaid will bankrupt the states, and in Illinois, the state will have to pay $2 billion over 10 years to provide coverage.
Fact: The expansion of Medicaid will not bankrupt the states because the new law requires states to pay only a small portion of the cost of covering these new enrollees. Illinois' Medicaid program estimates its annual costs at $200 million in 2020, when the phased-in costs of expansion are complete. The state's estimated contribution is $560 million over 10 years, less than 1% of Illinois' current Medicaid spending over 10 years (roughly $60 billion).
(Section 1201, Health Care and Education Reconciliation Act of 2010, P.L. 111-152; Theresa Eagleson, Medicaid Director, Illinois Department of Healthcare and Family Services, quoted in Graham, Judith. "Health Care Bill's Impact on State Will Be Delayed". Chicago Tribune. 31 March 2010. Web. 15 April 2010)

SPECIAL DEALS
Myth: The legislation is packed with special deals for certain states, such as the Cornhusker Kickback, the Louisiana Purchase and Gator-Aid.
Fact: There are no state-specific deals or earmarks in the health care reform law.
(Section 1102 and Section 1201, The Health Care and Education Reconciliation Act of 2010, P.L. 111-152)

IRS AGENTS
Myth: The IRS is hiring 16,000 new workers to audit taxpayers regarding health insurance. They will have the authority to seize your property and put you in jail if you do not have insurance.
Fact: The legislation does not require the IRS to hire any new workers. According to the IRS Commissioner, the IRS will not harass, audit or pursue individuals to verify that they have insurance. Insurance companies will report back to the IRS if you have insurance and what it costs, just like the bank reports your interest to the IRS now. Furthermore, health care reform legislation explicitly prohibits the IRS from seizing any property or pursuing any criminal charges against uninsured individuals. (Section 1501 and 1502 of the Patient Protection and Affordable Care Act of 2009, P.L. 111-148; Testimony of Douglas Shulman, IRS Commissioner, before the Subcommittee on Oversight of the House Ways and Means Committee, March 25, 2010)

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

The historic health care reform law will lower costs, improve coverage and expand access to health care in the 12th Congressional District by:

  • Enhancing current coverage for 376,000 residents with health insurance.
  • Providing tax credits and other assistance to up to 177,000 families and 12,800 small businesses to help them afford coverage, as well as protecting 1,700 families from bankruptcy due to unaffordable health care costs.
  • Extending coverage to 28,000 uninsured residents.
  • Guaranteeing that 9,000 residents with pre-existing conditions can obtain coverage.
  • Extending the solvency of the Medicare Trust Fund until the year 2026.
  • Improving benefits for Medicare recipients in our area, such as free preventive and wellness care, superior primary and coordinated care, and better nursing home care.
  • Lowering prescription drug costs. In 2010, the 9,800 Medicare beneficiaries in our area who enter the Medicare Part D coverage gap – the so-called “donut hole” – will receive a $250 rebate. Starting in 2011, seniors in the donut hole will receive a 50% discount on brand-name drugs, and the donut hole will be gradually closed.
  • Securing millions of dollars in additional funding for our 97 existing community health centers.
  • Allowing 61,000 young adults in the district to remain on their parents’ policies until they turn 26.

To be certain, health care reform legislation is not perfect. Neither were the bills passed 75 years ago creating Social Security and 45 years ago creating Medicare. Just as adjustments have been made to those programs, changes will need to be made periodically to this one. But most importantly, the United States will join every other developed country in offering health care coverage to its citizens.

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