Nelson: Health care reform benefits for Nebraskans

Creating private sector competition to drive down costs

The Senate health care reform bill reduces the deficit, relies on the free market, and adds competition that will benefit patients with lower cost and better health care. Reforms in the bill promote wellness and preventive programs, rural health services, small business tax credits and new insurance protections that will help Americans live healthier lives. Highlights of benefits for Nebraskans follow.

MEANINGFUL REFORMS...

§ Plans can no longer deny coverage to people with preexisting conditions

§ No lifetime or annual limits on coverage

§ Insurers will no longer be able to drop coverage when you get sick

§ Rates for premiums will not be not based on health status or gender

§ New appeals process to challenge decisions made by your insurer

§ Works to close Medicare Part D "donut hole," providing major savings for seniors on prescription drugs, affecting an estimated 48,00 Nebraska seniors

§ Within 90 days of enactment, provides $5 billion to help Americans with pre-existing conditions afford coverage

§ Starting 2014, provides tax credits to help Americans who cannot afford the cost of private health insurance

FISCALLY RESPONSIBLE...

§ According to the independent Congressional Budget Office, the Senate bill will reduce the deficit by more than $132 billion over the first 10 years and $1.3 trillion over the next ten years.

RELIES ON STATES AND THE FREE MARKET, NOT A PUBLIC OPTION...

§ The bill creates market-based exchanges in the states that introduce competition to lower costs and provide better health care for the American people. Senator Nelson opposed a federal public option that would have undermined the private insurance of 200 million Americans.

ALLOWS INSURANCE ACROSS STATE LINES...

§ The Senate bill permits states to join together to allow private insurance to be purchased across state lines. It requires the Office of Personnel Management to negotiate contracts, just like they do for plans available to Members of Congress.

PROVIDES SMALL BUSINESS TAX CREDIT...

§ Currently, more than 70 % of Nebraska's small businesses cannot afford or do not have access to health insurance for their employees. Tax credits will make health care more affordable to an estimated 33,000 Nebraska small businesses.

PROVIDES TAX CREDITS TO HELP UNINSURED OBTAIN COVERAGE

§ About 220,000 Nebraskans are uninsured and will have access to coverage through the health insurance exchange. The bill provides tax credits to help people without insurance obtain coverage.

§ Greatly reduces the "hidden tax" of about $1,000 per year all Nebraskans who currently have insurance pay today from costs shifted to them from the uninsured obtaining health services at emergency rooms.

STRENGTHENS NEBRASKA'S RURAL HOSPITALS...

§ Nelson fought to extend Rural Community Health funding to small rural hospitals -- often the only hospital for miles -- that do not qualify for federal funding, but were still struggling to keep their doors open. There are RCH hospitals in eight rural states, including Columbus Community Hospital in Nebraska.

§ Nelson fought to extend Flex grant funding to be used to support rural hospitals' efforts to improve hospital service and delivery of care. This provision supports Nebraska's critical access hospitals.

REDUCES COST TO TAXPAYERS...

§ A Nelson provision will cut $3.4 billion from the cost of the bill by requiring the Consumer Operated and Oriented Plan (CO-OP) program be in the form of loans and not grants. This conversion of funding from grants to loans serves as good stewardship of taxpayer dollars and would create a level playing field for new CO-OPs to compete against existing nonprofit plans in their respective regions.

MAINTAINS THE VALUE OF FLEXIBLE SPENDING ACCOUNTS...

§ A Nelson provision will allow the cap for flexible spending accounts, currently $2,500, to grow with inflation. Flexible spending accounts allow individuals to set aside pre-tax income to pay for health care costs. Without indexing the limit to inflation, the value of FSA plans would fall to less than half their worth in a decade.

HELPS TRAIN MORE DOCTORS AND NURSES...

§ The bill extends an income tax exclusion to health professionals participating in state-funded loan repayment programs set up by 17 states, including Nebraska.

NO PUBLIC FUNDING OF ABORTION...

§ The bill maintains a 30-year standard prohibiting federal funds from being used to pay for elective abortions. The Senate language allows states to ban public and private plans from covering elective abortion, and compels policy holders to pay separately from their own funds for abortion coverage, should they choose to add it to their plan. The conscience clause is strengthened.

ADOPTION TAX CREDIT...

§ Senator Nelson, a long-time supporter of adoption, fought to increase the adoption tax credit and adoption assistance exclusion by $1,000 and to make the credit refundable.

SUPPORT FOR PREGNANT TEENS...

§ The bill allows states to compete for $25 million in grants per year to create programs that support pregnant and parenting teens and young women. Potential programs could help pregnant or parenting teens to complete high school or provide intervention services.