Overall Approach to Expanding Access to Coverage and Individual Mandate

America’s Affordable Health Choice Act of 2009 is one portion of the current health care reform proposals. It is especially concerned with key amendments affecting the health care reform proposal bill. The following paragraphs summarize and explain the significant issues related to the proposal.

The main objective of the proposal is to provided health insurance to all individuals. Insurance coverage would be required. Individuals who do not have coverage would be obligated to pay a 2.5 % penalty. The penalty would be applied to a persons income before taxes are taken out (gross income). But the penalty cannot be more than the average premium under a basic insurance exchange plan for an individual or family coverage. Exceptions to the penalty do exist for religious purposes, people with dependents (ex. children), and those who are financially unable to afford the penalty.

Individuals and small businesses are given the opportunity to compare different coverage options this idea is also known as a health insurance exchange. The exchange would offer small businesses and individuals the opportunity to purchase coverage. Those who are 400% or less than the federal poverty level are offered premiums or cost sharing credits. A Premium is the amount of money an insurance company charges an individual for coverage. Cost sharing is the percentage not covered by the insurance plan that must be paid by the individual receiving the insurance coverage. Businesses/employers are required to provide health insurance. If they opt out of this option they are required to contribute to an insurance exchange trust fund.

Information cited from:
Kaiser Family Foundation (October 14, 2009). Health Care Reform Proposals. Retrieved from http://www.kff.org/healthreform/upload/healthreform_tri_full.pdf.

Cost sharing. (Fall, 2006). Retrieved October 14, 2009, from
http://web.mit.edu/osp/www/referencemanual/chapter/ch4_cost_sharing.pdf


Heather Simpson