After both chambers voted yes to its respective health care bills, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid need to compromise and come up with one single bill to be approved in both chambers before heading to President Obama’s desk for a signature.

The House bill includes a public option and would bring health insurance to 96 percent of all Americans 2012 compared to 94 percent in 2014 for the Senate bill. The House version also includes a new income tax on singles earning $500,000 a year, requires all big companies to offer coverage, offers immediate assistant to uninsured and expands Medicaid. The Senate bill includes most of these ingredients but to a lesser degree.

All 60 Democrats in the Senate including the two independents, Sanders (Vt) and Lieberman (Ct) are needed to accept the Senate version, hence the Senate bill can be seen as the minimum reform expected - and even that is a major victory for President Obama.

It includes six major changes: 1) It brings coverage to 94% compared to 83% today. 2) The reform is made through subsidies financed by for example fees on the insurance companies and especially their Cadillac plans; the premium insurances. 3) It puts pressure on big employers. 4) Medicaid is expanded to an income level equivalent to 1333 per cent of the poverty level. 5) Health Insurance Exchanges will open and offer national plans; not as liberal as a public option but still a step towards a federal approach. 6) There will be no more denial based on pre-existing conditions, no higher premiums for pre-existing conditions and limits on higher premiums based on age. Also, no lifetime limits.

Written by Marcus Oscarsson

Click here to read more from our US Politics Archives