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Given the hype surrounding the U.S. House’s passage of the Affordable Health Care for America Act (H.R. 3962 – NOTE: this is a link to the .pdf of the whole Bill and it is large) one would think the Bill is now the law of the land. It is not.

The House’s Bill does not correspond to the version prepared for debate in the U.S. Senate. The Senate may or may not pass their version, it may be subject to a filibuster, and, once passed, will need to be reconciled with the House version. In other words, passage in the House was important, and a first step, but far from being an overhaul of the U.S. health care system.

The House Bill exempts most small businesses from the health insurance mandate. Businesses with less than $500,000 in payroll would be exempt and there would be graduated penalties for non-compliance for businesses with $500,000 to $750,000 in payroll. Unfortunately, for small businesses, the availability of an exchange program is gradual: in 2013 employers with less than 25 employees could enter such exchanges and that gradually increases over the next years to include larger employers.

Also, the promise of insurance companies being allowed to compete across state lines was eviscerated in this Bill. The Bill calls for the creation of “compacts” where states could choose to allow out of state insurance companies to compete. However, state legislatures are left with the power to approve such competition. Experience dictates that means no competition.

I, like anyone who reads the Bill, can find some truly innovative ideas, some terrible pork giveaways, some really rotten ideas, and some expensive things that just don’t belong. But that is the process and this is a first step.

House Passes Health Care Bill – Not Law Yet originally appeared on About.com Business Insurance on Wednesday, November 11th, 2009 at 10:26:22.

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