The Health Care and Education Reconciliation Act

The Health Care and Education Reconciliation Act will ensure that all American have access to quality, affordable health insurance and put students ahead of private banks. The Congressional Budeget Office has determined that together, these two bills are fully paid for, will ensure 95 percent of Americans have access to quality, affordable health care, will bend the health care cost curve, and will reduce the deficit by $143 billion over the next ten yers with further deficit reduction in the following decade.

Coverage

• Makes plans in the Exchange more affordable by further limiting the cost of premiums and cost-sharing for individuals under 400 percent of poverty (A family of four with income less than $88,000)
• Improves the employer responsibility Provisions

Health Provisions

• Extends important insurance reforms to existing plans, including bans on lifetime and annual limits, coverage of pre-existing conditions, a ban on rescissions, limits on waiting periods, and expanded coverage for young adults.
• Increases the substantial investment in Community Health Centers to expand access to health care in communities where it is needed most.

Medicare

• Provides a $250 rebate for beneficiaries who hit the coverage gap in 2010 and fills the coverage gap for brand and generic drugs by 2020.
• Reduces MA overpayments in a targeted way that reflects the different areas. Ensures that MA plans spend at least 85% of revenue on medical costs or activities that improve quality of care.

Medicaid

• Equalizes and increases funding for the Medicaid expansion by providing 100 percent federal match in 2014, 2015, and 2016.
• For early expansion states, provides additional federal funding to reduce the cost of covering non-pregnant childless adults beginning in 2014.
• Narrows the definition of new drug formulations for purposes of applying the Medicaid drug rebate

Fraud, Waste, and Abuse

• Establishes new requirements for community mental health centers to prevent fraud and abuse
• Modifies Medicare prepayment medical review limitations
• Increases funding to fight fraud, waste and abuse by $250 million

Higher Education provisions Under the Finance Title

• Provides $2 billion for community colleges to develop and improve educational or career training programs

Higher Education Provisions

• Beginning July 1, 2010, all new federal student loans will originate through the Direct Loan program, instead of through the federally-guaranteed student loan program
• Includes $36 billion over ten years to increase the maximum Pell Grant to $5,550 in 2010
• Invests $2.55 billion in Historically Black Colleges and Universities and Minority-Serving Institutions.
• Includes $750 million for college access and completion support programs for students, including increased funding for the college access and completion support programs for students, including increased funding for the College Access Challenge Grant program, which funds programs at states and institutions aimed at increasing financial literacy and student retention.