After more than a year of debate, the House sent sweeping health care reform legislation to President Obama’s desk last night. The president will likely sign the legislation Tuesday – it takes a day to make its way up Pennsylvania Avenue – so that the Senate can begin debate on the reconciliation bill. The Senate now must decide on if it wants to action the House-passed amendments to the original Senate bill - amendments that would add billions to the cost of health care reform while erasing unpopular buy-offs in the original Senate bill, such as the Cornhusker Kickback, the Louisiana Purchase and the Gator Aide (all programs included in the Senate bill to gain support from Senators in Nebraska, Louisiana and Florida). 

WHAT WILL BECOME LAW?

H.R. 3950, the Patient Protection and Affordable Care Act, will become law.  This bill passed the Senate on Dec. 24, 2009 and passed the House on Sunday, March 21, 2010. 

Business Impact:

• Businesses with 200 or more employees must provide insurance (small business exemption - 50 employees or less)
• $2000 fee accessed on a company's entire workforce (per employee) if one employee purchases insurance through a state exchange
• 40 percent tax on "Cadillac Plans", or plans that cost more than $10200 per individual and $27,500 per family
• A 2 percent increase in the Medicare Hospital Insurance Payroll Tax for individuals making over $200k
• Lower limits on FSAs and a reduction of expenditures in HSAs
• Employers must report the value of health care benefits on employee's W2 tax statements (starting in 2011)
• A new tax increase of 3.8 percent on investment income

General Impact:

• States must create insurance exchanges (states must form by 2014; if not, then the U.S. Government will create and manage the state-based exchange)
• All individuals must buy insurance or face fines (includes a hardship exemption)
• Insurance companies cannot deny coverage for pre-existing conditions
• All restaurants and food establishments must make available information on the caloric content of foods sold

See how your elected official voted on this bill

A timeline of when provisions of the bill will go into effect

An in-depth analysis prepared by Deloitte on the new law's impact on business and consumers