U.S. Army Captain Michael Kelvington, commander of the Battle company, 1-508 Parachute Infantry battalion, 4th Brigade Combat Team, 82nd Airborne Division, bows next to remains of Gulam Dostager, a member of Afghan Local Police who was killed in the blast of an Improvised Explosive Device (IED) during the joint Tor Janda (Black Flag in Pashtu) operation, in Zahri district of Kandahar province, southern Afghanistan May 25, 2012.  REUTERS/Shamil Zhumatov  (AFGHANISTAN - Tags: MILITARY CIVIL UNREST CONFLICT TPX IMAGES OF THE DAY)

Reuters Photojournalism

Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption 

Members of the U.S. Navy Blue Angels fly over the World Trade Center in lower Manhattan as part of the 25th annual Fleet Week celebration in New York, May 23, 2012.  REUTERS/Eduardo Munoz (UNITED STATES - Tags: MILITARY ANNIVERSARY TPX IMAGES OF THE DAY)

Fleet Week

The U.S. Navy takes Manhattan for a week.  Slideshow 

Photo

The SpaceX mission

A privately owned unmanned rocket blasts off on a mission to be the first commercial flight to the International Space Station.  Slideshow 

FACTBOX: Health sector winners, losers in U.S. reform bill

Thu Oct 29, 2009 3:46pm EDT

{\rtf1\ansi\ansicpg1252\deff0\deflang1033{\fonttbl{\f0\fswiss\fprq2\fcharset0 Arial;}}

{\colortbl ;\red255\green255\blue255;}

viewkind4uc1pardhighlight1f0fs24 (Reuters) - The U.S. House of Representatives on Thursday unveiled its final proposal to overhaul the nation's $2.5 trillion health care system. The legislation combines three previous committee bills but could still face changes before lawmakers vote on it.\par

Following are some of the health industry winners and losers based on the House bill.\par

\par

LOSERS...\par

\par

HEALTH INSURERS\par

Already braced for competition from a government-run insurance plan, health insurers such as UnitedHealth Group Inc, Cigna Corp and others would take a further hit under the latest version of the House bill.\par

The measure takes direct aim on profit margins. It would force insurers to immediately start giving customer rebates if less than 85 percent of an enrollee's premiums were spent on actual care.\par

The public plan itself could also undercut insurers by paying doctors, hospitals and others rates as low as those by the Medicare plan for the elderly and disabled. Rate hikes by private insurers would also be scrutinized.\par

The bill also would eliminate the exemption health insurers had from antitrust laws, explicitly barring them from price fixing, bid-rigging or dividing up markets.\par

And while individuals would have to buy a plan or pay a fee as high as 2.5 percent of their adjusted income -- a move backed by insurers -- more smaller businesses would be exempt from the requirement to offer coverage.\par

Government reimbursement for private Medicare Advantage health plans would also see cuts.\par

Lawmakers did not include a tax on more extensive, so-called "Cadillac" health care plans or impose any other fees on the industry, as one Senate version did.\par

\par

DRUGMAKERS\par

Drugmakers would take a larger hit under the House bill than with another Senate version, which included an agreement with the industry to provide $80 billion worth of savings over 10 years.\par

The House version would require drug companies to pay rebates to the government for drugs used by elderly and disabled Medicare patients who also are on Medicaid, the health program for the poor. It also would require the health secretary to negotiate drug prices under Medicare.\par

Drugmakers, which include Pfizer Inc, GlaxoSmithKline Plc, Merck & Co Inc and others, have opposed both ideas.\par

The House bill would gradually eliminate the Medicare "doughnut hole," when prescription drug costs are not covered, by 2019. The drug industry had agreed to provide a 50 percent discount for drugs in the doughnut hole over the next decade.\par

\par

WINNERS ...\par

\par

DEVICEMAKERS\par

Lobbyists representing medical devicemakers such as Boston Scientific Corp <BSX.N

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.