House Passes the "Affordable Health Care for America Act" (H.R. 3962)
November 6, 2009
The U.S. House of Representatives passed the "Affordable Health Care for America Act" (H.R. 3962) by a 220-215 vote on Saturday, November 7.
This legislation seeks to overhaul private insurance practices and guarantee comprehensive and affordable coverage to nearly all Americans through government subsidies.
H.R. 3962 requires that all Americans carry health insurance coverage or face a 2.5 percent penalty tax on a portion of their income; exemptions will be made for individuals with low incomes. In addition, businesses would be subjected to provide health insurance coverage to all employees or contribute to a pool that would offer coverage. Both the individual and business mandates included in the bill will take effect in FY 2013. The bill prohibits charging individuals higher premiums or denying them coverage based on pre-existing conditions and a government-run public option would be available and operational by the Department of Health and Human Services.
The coverage expansion would be offset by raising taxes on individual incomes of $500,000 and up or $1 million and up for households. It would also cut roughly $500 billion in payments to Medicare providers. The official price tag of H.R. 3962 bill is $1.1 trillion.
