Report describes how HR 3200 would impact PA

The health care reform bill pending before the U.S. House of Representatives (H.R. 3200) would benefit thousands of people in every Pennsylvania congressional district.

A report released July 24 by the U.S. House Committee on Energy and Commerce provides details about every congressional district in the country.

For example, the 17th congressional district, represented by Tim Holden, would see the following changes if HR 3200 were enacted:

"(U)p to 13,000 small businesses could receive tax credits to provide coverage to their employees; 12,300 seniors would avoid the donut hole in Medicare Part D; 920 families could avoid bankruptcy each year due to unaffordable health care costs; health care providers would receive payment for $107 million in uncompensated care each year; and 40,000 uninsured individuals would gain access to high-quality, affordable health insurance."

The report also details the number of district residents who would be impacted by the income tax surcharge contained in the bill.  In Holden's district, 1,800 households would pay more in taxes; this is only one-half of one percent of taxpayers in the district.

Much of the media reporting on HR 3200 has focused on the "public option", a government-backed insurance plan that would focus on affordability of health insurance and would provide a degree of competition for private health insurers.  Opponents of the bill are describing this "public option" as a "government take-over of health care."

Under the provisions of the bill, the public option would be available initially only to individuals who are uninsured and to businesses that are not offering coverage to their employees.  The Congressional Budget Office expects 3 percent of the U.S. population be enrolled in the public option during the first three years of operation. The large majority of the gains in coverage would be achieved through the expansion of private insurance. 

Under HR 3200, all but the smallest employers would be required to offer a health plan to their employees or pay an 8 percent tax on their payrolls.  Also, individuals would be required to either obtain coverage through their places of employment or buy individual coverage.  To help make this possible, the bill would make tax credits available to small employers and subsidies available to individuals with incomes in the lower half of the income scale.