A Look Inside The Latest Health Care Proposals (H.R. 3200)

EDWARDSVILLE, Ill., Aug. 17 /PRNewswire/ -- With so much turmoil surrounding
the federal government's health care initiatives, the Federation of American
Consumers and Travelers (FACT) is attempting to create a summary of key
provisions. The goal is to condense incredibly lengthy and convoluted language
into something which all consumers can digest so that they can then decide
which way they want their legislators to proceed.

Some initial findings:

A tax surcharge would be imposed on individuals who earn more than
$350,000.00. The surcharge would start at 1% and would increase up to 5.4% for
those who have a modified adjusted gross income that exceeds $1 million.

A non-compliance tax would be imposed on individuals who do not acquire an
"acceptable health insurance policy" (as determined by a government committee)
for themselves and their families. This proposed non-compliance tax would be
2.5% of adjusted gross income, which would be effective after December 31,
2012. (Certain persons, including nonresident aliens, would be exempted from
individual taxes.)

A non-compliance tax would be imposed on employers who do not provide their
employees health care coverage which meets government-specified minimum
coverage requirements. This noncompliance tax would equal 8% of the gross
wages; it would be in addition to the social security tax and there would be
no wage base limitation. (The Ways and Means Committee proposes an exception
for small businesses that have an employee payroll of less than $400,000.00.)
Coverage requirements would be mandated by a government committee, headed by a
Health Commissioner who would be appointed by the president.

The Commissioner would be empowered to establish qualified health benefits
plan standards, establish and operate a Health Insurance Exchange and conduct
compliance audits at random. (The person or entity being audited would be
required to cover the Commissioner's expenses.) The Commissioner also would be
free to collect data for purposes of carrying out his or her duties.

Individual states could establish health exchanges of their own, subject to
providing "timely and reasonable notice to the Commissioner." Such exchanges
could be terminated at the Commissioner's discretion.

A public health insurance option would be established under the auspices of
the Secretary of Health and Human Services. The Secretary would collect "such
data as may be required" to establish premiums and "to reduce racial, ethnic,
and other disparities in health and health care." Premiums would be
geographically adjusted and would comply with the premium rules established by
the afore-mentioned Commissioner.

The Treasury would appropriate "such sums as necessary" to cover the first 90
days worth of claims reserves based on projected enrollment.

A physician or health care practitioner who agrees to participate in both
Medicare and the public health insurance option would receive payments which
are 5% greater than the rates paid to nonparticipating practitioners.

Vicki Rolens, managing director of FACT, says, "HR 3200 as drafted may or may
not be passed into law. We just feel that people are entitled to know what the
bill contains and that they should make their feelings known to their
congressmen. The matter is far too important to be treated in a haphazard
fashion by our elected officials, but without a strong public voice there is
always a danger of that happening."

Citizens can find out how to reach their respective lawmakers by visiting
http://www.usa.gov/Contact/Elected.shtml

This news release is issued as a service of the Federation of American
Consumers and Travelers (FACT). FACT was formed under the not-for-profit
corporation laws of the District of Columbia in 1984, and currently serves
more than 1 million consumers nationwide. Additional information on FACT may
be found in the Encyclopedia of Associations, and by visiting the
association's Web site (http://www.usafact.org). Informative, unbiased news
bulletins are regularly disseminated by FACT to help its members remain
current on matters which might seriously impact their lives. In addition to
publishing consumer-related reports, the association provides more than 30
benefits for its members, ranging from medical insurance and dental discounts
to prescription drug savings, scholarships and consumer information.

FACT's administrative office is located at 318 Hillsboro Avenue, Edwardsville,
IL 62025.

Contact:

Vicki Rolens
1-800-USA-FACT
cservice@usafact.org

This release was issued through eReleases(TM). For more information, visit
http://www.ereleases.com.

SOURCE Federation of American Consumers and Travelers

Vicki Rolens, +1-800-USA-FACT, cservice@usafact.org